Toyota Motor Corporation and Isuzu Motors have decided to disband their capital tie-up. Toyota will be looking to sell their 5.89 percent stake in Isuzu Motors. The two companies signed an agreement to share operational resources and provide technical assistance to one another in developing and producing diesel engines back in 2006. This is when Toyota had agreed to buy a stake in Isuzu.
However, the two companies will continue to maintain their relationship and also remain open to collaborating in the future. Given the environment of the market, suspension of originally planned projects and results of other partnerships and collaborations, Toyota and Isuzu have agreed upon re-examining the capital relationship based on the current situation of their businesses.
Earlier in the year, Toyota and Suzuki had announced an agreement toward the mutual supply of hybrid and other vehicles between the two companies for the Indian market. Specifically, Suzuki would supply the Baleno and Vitara Brezza vehicle models to Toyota, while Toyota will supply the Corolla vehicle model to Suzuki.