Toyota to sell entire stake in Isuzu, ending 12-year partnership
The companies decided to part ways due to difficult business conditions and little progress in collaborative projects
Toyota Motor Corporation (Toyota) and Isuzu Motors Limited (Isuzu) have agreed to dissolve their capital tie-up, with Toyota planning to sell its entire stake in Isuzu in the future. Currently, Toyota has the second largest stake (5.89%) in Isuzu with 50 million shares. The two companies intend to maintain their relationship through ongoing joint development projects related to basic technologies and will remain open to the possibility of future collaboration.
In November 2006, Isuzu and Toyota signed a basic agreement to utilise each other's operational resources in the fields of development and production focusing on diesel engines, to provide mutual technical assistance and to create a framework capable of capitalizing on the resulting synergistic effects, and to examine the feasibility of collaborative projects. At the same time, Toyota also agreed to obtain a stake in Isuzu.
Subsequently, with changes in the market environment prompting the companies to suspend some of the originally considered projects, and little specific progress achieved in other collaborative efforts, Toyota and Isuzu have agreed to reexamine the capital relationship based on the current business situation.