Isuzu Motors and Toyota Motor have reached an agreement for collaboration on the development, production, and supply of small diesel engines.
Isuzu and Toyota had signed a memorandum of understanding in November 2006 to begin the study of synergic effects of business collaboration to mutually utilize their management resources in the fields of R&D and production, and to supplement each other's technological development. Since then, the two companies have conducted investigations with the aim of reaching agreement on the specific details of the business collaboration. The two companies will develop a 1.6-liter engine with an aluminum cylinder block for use in Toyota vehicles sold in European markets. Both companies will maximize use of their technological capabilities and expertise to develop and produce an engine with high performance. Isuzu and Toyota will begin discussions on the details of operations concerning development, production and supply of the diesel engine, but in principle, Isuzu will play the leading role. Production is scheduled to begin around 2012. Source: Datamonitor
