Toyota, Isuzu to take stake in each other to co-develop new vehicles

Toyota Motor Corp. and Isuzu Motors Ltd. said Wednesday they will take a stake in each other to jointly develop next-generation small-sized commercial vehicles with Toyota's subsidiary truck maker Hino Motors Ltd. Toyota said it will hold a 4.6% stake of all issued shares as of the end of September, worth ¥42.8 billion, in Isuzu through a third-party allotment, while Isuzu plans to acquire Toyota shares of the same value through a market purchase. The three companies said they will set up a joint venture named Commercial Japan Partnership Technologies Corp. in April to co-develop small-sized electric and fuel-cell trucks as well as autonomous driving technologies for such vehicles. Toyota will have an 80% stake in the joint venture, while Isuzu and Hino plan to each hold a 10% stake. Toyota and Isuzu initially agreed on a capital tie-up in 2006 to jointly develop technologies for diesel engines, but it was dissolved in 2018 without any major achievements.