Toyota adds Isuzu shares
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royoTA HAS acquired a 5.9% ;hare in Isuzu Motors Japan to lecome Isuzu's third largest ;hareholder. The move seems lesigned to bolster Toyota's diesel ngine supply and R&D capacity, caving it free to concentrate on vtrol and hybrid technology. However, this does not appear .0 herald an all-out merger hid by foyota. Internal notes seen by CM )oint to the possibility of a more Ormalised R&D relationship, hut he retention of a competitive pproach to the medium-duty ruck market.
"Even if Isuzu ties the knot with follow on the technology side of he [diesel engine] business, we emain competitors in the market," suzu's Japanese HQ says.
Goldman Sachsanalyst Kunihiko ;hiohara says:"Toyota will be able o outsource diesel engines from suzu in Europe and the U.S. It will ilso be able to establish competitive idvantage in the pickup truck ector important in North kmerica and emerging markets."