Isuzu in talks with GM about jointly selling commercial vehicles

Article by Christian A., on May 2, 2012

Negotiations will soon begin between General Motors Co. and Isuzu Motors Ltd. about jointly selling commercial vehicles in Asia and in Central and South America, according to a Nikkei business daily report. Under this proposed deal, Gm will take a 10% stake in Isuzu. If this deal pushes through, it would restore a 35-year capital alliance that was thrown out during GM's 2006 restructuring.

As a result, Toyota Motor Corp. may be encouraged to sell its 5.9% stake in Isuzu since the GM link-up would rival its own reputable markets in Asia. The Nikkei report also said that Issue will stop talks with Volkswagen AG about a capital tie-up.

However, it will continue talks on supplying pickup trucks to Volkswagen in Thailand. GM and Isuzu are expected to begin talks in early May. It’s likely that during a meeting to be attended by Isuzu President Susumu Hosoi and GM CEO Dan Akerson this summer, an agreement would already be signed.

The paper said that the two automakers are thinking about jointly developing pickup trucks and joint production and distribution plants in Southeast Asia.

If GM gets the 10% stake, it will become the biggest Isuzu shareholder, getting past trading house Mitsubishi Corp., which owns a 9.2% stake. The two companies will also be discussing the possibility of lifting GM's stake size in the future. However, Isuzu may decide not to pursue a stake sale to maintain its independence in management and development.

If you liked the article, share on:

Topics: isuzu, gm

Comments

Recommended

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries