Toyota, Isuzu End 12-year Diesel Engine Joint Development
Toyota Motor Corporation and Isuzu Motor Limited announced that their 12-year-old capital tie-up on joint diesel development has ended. The two Japanese automakers decided to put an end to its partnership due to the current trend of the global market, which demands more eco-friendly vehicles.
Toyota and Isuzu signed an agreement in November 2006 to jointly develop diesel engines. The agreement stated that the two companies agreed to "utilize each other's operational resources" in the field of diesel engine development by providing technical assistance and collaborative projects. Toyota also agreed to obtain a stake in Isuzu. Speaking of which, Toyota currently holds 5.89-percent stake in Isuzu. Despite this news, Toyota and Isuzu is willing to maintain their strong relationship and will remain open to the "possibility of future collaboration."
Toyota and Isuzu agreed to develop a 1.6-liter diesel engine for small passenger cars in Europe in 2006. The two automakers then planned to start producing the said engine in Europe in 2012. However, Toyota decided not push through with that plan due to financial issues.
As said earlier, the end of the Toyota-Isuzu diesel engine joint development is caused by the global market's demand for more eco-friendly vehicles. A proof to this is the decline of diesel car sales in key European markets since 2017. Not just that, the United Kingdom is one of the countries that wants to get rid of fuel-based cars. The British announced that they will ban new diesel and gasoline cars by 2040. Other countries such as France, India, Norway, and Germany are also on the same track to ban fuel-powered cars.
EDITOR'S NOTE: Toyota Motor Corporation has also said that it is "planning to sell its entire stake in Isuzu in the future."
Toyota and Isuzu agreed to develop a 1.6-liter diesel engine for small passenger cars in Europe in 2006. The two automakers then planned to start producing the said engine in Europe in 2012. However, Toyota decided not push through with that plan due to financial issues.
As said earlier, the end of the Toyota-Isuzu diesel engine joint development is caused by the global market's demand for more eco-friendly vehicles. A proof to this is the decline of diesel car sales in key European markets since 2017. Not just that, the United Kingdom is one of the countries that wants to get rid of fuel-based cars. The British announced that they will ban new diesel and gasoline cars by 2040. Other countries such as France, India, Norway, and Germany are also on the same track to ban fuel-powered cars.
EDITOR'S NOTE: Toyota Motor Corporation has also said that it is "planning to sell its entire stake in Isuzu in the future."Featured Articles
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