Toyota, Isuzu Consider Diesel Partnership

Washington DC June 15, 2007; The AIADA newsletter reported that Toyota Motor Corp. has announced it's in talks with Japanese partner Isuzu on developing diesel engines, but no details have been decided.

The Nikkei reported in its Friday's editions that Toyota, Japan's top automaker, will outsource diesel engine production to Isuzu, which has a reputation for top-notch diesel technology.

According to the Detroit News, Isuzu will set up a plant in northern Japan for low-emission diesel engines and produce 200,000 engines per year for Toyota small cars for export to Europe. Demand for diesel vehicles is growing, especially in Europe, because of worries about global warming.

Although diesel-powered automobiles generally have good mileage, which is a plus for reducing global warming, they also produced more noxious fumes than gasoline engines. But recent advances in diesel technology have cut those fumes to make it more environmentally friendly.

By collaborating with Isuzu, Toyota can hope to save development costs for "green" diesel engines, the Nikkei said.