In order to end the twelve years long agreement, Toyota Motor Corporation is all set to sell its entire stake in Isuzu. Back in 2006, Toyota and Isuzu signed an agreement to share operational resources and provide technical assistance to one another in developing and producing diesel engines. At that time, Toyota had agreed to buy a stake in Isuzu and now both the Japanese automakers have decided to disband their capital tie-up.
Currently, Toyota owns 5.89 per cent stake in Isuzu Motors and will be looking out to sell the stakes. Though the manufacturers are ending their agreement, both Toyota and Isuzu ill continue to maintain their relationship and also remain open to collaborating in the future. Also, Toyota and Isuzu have agreed upon re-examining the capital relationship based on the current situation of their businesses for the suspension of originally planned projects and results of other partnerships and collaborations, looking at the current market scenario.
Talking about the reason behind ending this agreement between Toyota and Isuzu can said to be the increasing trend of zero-emission vehicles that made Toyota and Isuzu to culminate the diesel project. Now, Toyota will be focusing on developing next generation commercial vehicle technologies with Hino Motors as it forms a core part of its global business. Currently, Hino is partnering with Volkswagen commercial vehicle division for developing self-driving and electric powertrain techs.
Apart from this, Toyota has also announced the partnership with Suzuki earlier this year. The partnership will work toward the mutual supply of hybrid and other vehicles between the two companies for the Indian market. To be specific, Toyota will supply the Corolla vehicle model to Suzuki, while Suzuki would supply the Baleno and Vitara Brezza vehicle models to Toyota. Let’s see what next Toyota is planning to offer with its partnerships with different other global automakers.