For the past 12 years, Toyota Motor Corporation has had a 5.89 percent stake in Isuzu for the development of turbodiesel engines. Most notably, Isuzu made significant inputs to the 1.6-liter D-4D mill for the European market. Now the partnership will soon come to an end.
Toyota made the announcement official and in their statement, changes in the market environment have prompted the companies to suspend some of the originally considered projects, and little specific progress achieved in other collaborative efforts. With that, Toyota and Isuzu have agreed to re-examine the capital relationship based on the current business situation.
The company did say that they will continue maintaining good ties with Isuzu, though. Toyota went as far as saying they will remain open to the possibility of future collaboration. Also, Toyota made an announcement earlier this year that they will stop offering diesel engines in passenger cars over in Europe. Isuzu on the other hand is left with no collaboration with a different manufacturer.
Despite that, Isuzu had posted a 16 percent gain in net profit for the first half of the year. In South East Asia alone, Nikkei reports that profits have jumped up to 30 perent, a stron showing. It has been reported that the company is currently looking for a new partner to continue diesel and diesel hybrid development.