Toyota plans to sell its entire stake in Isuzu

Toyota has revealed that it is planning to sell its entire stake in Isuzu. The former holds 50 million shares in Isuzu, which amounts to 5.89% of the total number of shares issued.

With changing market conditions, both companies have had to shelve some joint-venture projects. Along with this, progress on other collaborations was slower than expected, making Isuzu and Toyota re-examine their capital relationship based on present market conditions.

Back in November 2006, both the Japanese companies signed a basic agreement to make use of each other’s operational resources in the development of diesel engines, to provide mutual technical assistance and to examine the feasibility of joint projects. Toyota had also agreed to purchase a stake in Isuzu.