Japanese companies Toyota and Isuzu decided to join forces back in 2006 to further the development of its diesel powertrains as well as explore other overlapping interests, and was then a rather successful collaboration given Isuzu’s expertise in producing strong, reliable diesel powertrains and Toyota’s jack-of-all-trades know-how. But in the 12 long years since, the space for collaboration has steadily shrunk, and so the two marques have decided that it’s time to part ways.
A highlight of the 12-year old venture was Toyota’s agreement to buy some 5.9% of Isuzu’s stock, or 50-million shares to be more specific. As part of the mutual agreement to split up, Toyota will be selling that stock back, though that move will only be undertaken “in the near future.”
The main reason for the split? “Once-in-a-century changes” to the “market environment,” which once you process through the marketing-garble-translator, works out to Toyota and Isuzu reacting to international markets distancing themselves from diesel engines, thanks in no small part to Volkswagen diddling their emissions data as part of the Dieselgate scandal.
It’s an amicable split to say the least. Isuzu and Toyota will not rule out working together in the future, and seek to “maintain their strong relationship.” In fact, “ongoing joint development projects related to basic technologies” will be continued after the ‘divorce,’ though neither company was particularly forthcoming on what those projects were or what they intend to achieve.
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