November 8, 2006
Toyota purchases 5.9 per cent of Isuzu
Tokyo, Japan – Isuzu Motors Limited and Toyota Motor Corporation have announced they have signed a memorandum of understanding, which will result in Toyota purchasing 5.9 per cent of Isuzu. The two companies say they are seeking to mutually utilize their management resources in research and development, and to supplement each other’s technological development. Toyota will purchase 100 million shares of Isuzu from Mitsubishi and ITOCHU Corporation.
The companies have stated that they will focus on three fields, with Isuzu assuming the main role in fields related to the research, development and production of small diesel engines, and joint research and development of emission-control technologies and devices for diesel engines; Toyota will assume the main role in environmental technologies, including technologies related to alternative fuels.
In a statement, the two companies say that they “have come to view that, while they respect each other’s independency in management, each side could prosper further by strengthening their business relationship, as global competition intensifies.”