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. Toyota’s stake in Isuzu includes 50 million shares.
However, both companies intend to maintain their strong relationship, through ongoing joint development projects related to basic technologies and are open to the possibility of future collaboration.
In November 2006, Isuzu and Toyota signed an agreement to share each other’s operational resources and focus on production of diesel engines. At the same time, Toyota also agreed to obtain a stake in Isuzu. However, with the market changing continuously, these variations have prompted these companies to suspend some of the originally considered projects.