Toyota Buys 5.9% Stake in Isuzu

[Variance]

Toyota Buys 5.9% Stake in Isuzu

I'm thinking we're going to want to move Isuzu to the "Other Guys" section now...

Toyota announced today that it will spend $373 million on a deal with Isuzu that will transfer 5.9% of the truck- and diesel-maker to the giant Japanese automaker. Toyota's goal in purchasing a stake in Isuzu is to bolster its diesel portfolio, which apparently lags behind other major automakers like cross-town rival Honda who announced in September it would have diesel-powered passenger cars for sale in the U.S. within three years.

Autoblog

[Cory Wolfe]

Hmm... is it me or is Toyota taking stakes in companies GM has diddled with?

[Northstar]

I think they want some diesel technology out of this, though if they really need it that badly they're going to be pretty far behind on the diesel front in trucks I would think.

[regfootball]

this is why i admire honda. they learn themselves how to do diesel and set a standard of excellence. toyota is in washington redskins mode right now.....try to free agent their way to success with loads of cash being thrown around.

i don't think it will work for them.

[thegriffon]

Japanese media with a good memory have suggested the deal involves Isuzu asking GM to sell back the diesel assets Toyota is looking at here. After all everything Toyota is after here is only partly owned by Isuzu—the majority interest is held by GM and if you look up the light diesel companies that are online you'll see quite clearly "A GM Company". Isuzu talks a good game but they've already sold all this stuff to GM, and it's GM developing all the new engines. It's GMI Diesel Engineering, not Isuzu-GM, DMax and Isuzu Motors Polska are owned by GM, not Isuzu, European development center Isuzu Motors Germany is "A GM Company" etc.