Toyota Ended its Partnership With Isuzu
The partnership between Toyota and Isuzu has survived for 12 years and has been based on the development of medium-sized diesel engines whose impact on the automotive industry has been dramatically weakened. “The market is undergoing changes of once in a century”
Toyota and Isuzu reached a joint decision to break the relationship between the two companies after falling demand for diesel engines and changes in air pollution standards. Toyota has a 5.8% stake in Isuzu, which it will buy back for $ 720 million. “As the global automotive industry undergoes changes once in a century, Toyota and Isuzu will continue to invest resources in the private and commercial vehicles, respectively,” they announced.
The two companies have developed the connection between them for more than 12 years, with the development of a 1.6-turbo diesel engine, mainly for medium-sized passenger cars such as Verso. However, in light of the global changes in the automotive market, it was decided to dismantle the partnership and focus on launching new ventures, each brand according to its objectives. Toyota is in full control of Hino so that it does not need Isuzu for the development of work vehicles.
The connection between Toyota and Isuzu was created in 2006, but encountered structural difficulties at the outset; Shortly after the signing of the agreement, the global automotive industry was hit by the US economic crisis and in the ensuing years, the diesel engine suffered another setback in the wake of the Volkswagen dieselgate scandal, which revealed that the company used software that defies air pollution tests to improve CO2 .
It can be assumed that Toyota will not lose sleep hours after the separation of powers between the brands; Last October, the Japanese company announced that its current generation of diesel engines in Europe would be the last. Even cars like Toyota Evansys, for example, are not armed with independent diesel engines, but have been recruited from BMW.
A small chance, meanwhile, is that Toyota will extract the diesel engine from Land Cruiser, which has received a technological update package for its compliance with the EU 6 standard. These things were said the previous year at the Frankfurt Motor Show by Toyota’s chief engineer, “If one day we have a hybrid technology that we can say about it – OK, it’s reliable enough for the Land Cruiser, so of course I will not refuse to test it, but at this stage you can not rely on a hybrid system in demanding desert conditions, for example. ”