Toyota to buy 5.9 % stake in truck maker Isuzu
By Agence France-Presse
TOKYO--Toyota Motor Corp. said Tuesday that it had agreed to buy a stake of 5.9 percent in Japanese truck maker Isuzu Motors Ltd and form a business tie-up in research and production.
The move comes seven months after troubled US auto giant General Motors agreed to sell its 7.9 percent stake in Isuzu for about 300 million dollars to raise cash in the face of heavy losses.
Toyota said it would acquire 60 million Isuzu shares from Mitsubishi Corp and 40 million from Itochu Corp, which together bought most of GM's shares.
It did not disclose a price but based on Isuzu's share price the stake is valued at 41.5 billion yen (352.2 million dollars).
"In the collaboration, the two companies will seek to mutually utilize their management resources in the fields of research and development and production, and to supplement each other's technological development," Toyota said.
The main focus would be on small diesel engines, emission-control and environmental technologies, it said.
Toyota said the two partners had decided that "each side could prosper further by strengthening their business relationship as global competition intensifies."
Isuzu Motors shares closed down five yen at 415 ahead of the announcement.
The announcement came as Toyota reported a 36.2 percent jump in net profit to a record 777.2 billion yen for the six months to September as revenue grew 15.3 percent to 11.47 trillion yen.
Toyota, the world's second largest car maker which is on track to overtake General Motors for the top spot, said operating profit increased 35.1 percent to 1.09 trillion yen, also a record.
GM meanwhile first invested in Isuzu 35 years ago and raised its shareholding to as high as 49 percent but it decided to cut its capital ties as part of its business overhaul after losing 10.6 billion dollars in 2005.
Re: Toyota to buy 5.9 % stake in truck maker Isuzu
I wonder what kind of "technological partnership" does a 5.9% stake have? Im sure if it wont be enough to influence any managerial/business decisions in Isuzu... atleast not anything major.
Bumaba yun shares ng isuzu Baka nakita nila magkakaroon ng d4d problems ang isuzu diesel engines hehehe
Re: Toyota to buy 5.9 % stake in truck maker Isuzu
inggit lang sila kc wala pa masyado naging prob sa mga engine ng isuzu and tested na tlaga.... heheheh.... and lakas ng isuzu sa thailand ha.. airport limosine nila is the MU-7....
guys, iv heard sa kilala namin about a story sa isang isuzu fuego.... the fuego overheated daw and tlagang tumirik ang engine kc umosok tlaga, and hindi yun maintained sa casa ha.... meorn kc sila maintainace for their trucking kaya dun lang pinagawa ang services and maintainance..... guess whta they did? they just splashed some water sa engine to cool it down and soldered the radiator and put some water sa radiator,, guess what? after a few minutes umandar lang ang fuego with out any complication daw and bumyahe pa after umandar ang fuego, hindi na pinag overhaul daw.... ganyan katibay ang engine.... hehehehe.....
Toyota to buy 5.9 % stake in truck maker Isuzu
Baka nakita nila magkakaroon ng d4d problems ang isuzu diesel engines hehehe
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