Toyota Motor Corp. will reconstruct a capital alliance with Isuzu Motors Ltd., with the two firms investing more than ¥40 billion in each other, in a bid to jointly develop advanced vehicles such as small autonomous trucks. The revived alliance, announced Wednesday, signals the urgent need for carmakers to find partners in developing new, costly technologies, particularly for automotive electrification. The alliance, also involving truck-maker and Toyota subsidiary Hino Motors Ltd., aims to clear emissions regulations and meet demand from customers who are increasingly aware of global warming, the companies said. Toyota and Isuzu dissolved their previous capital partnership in 2018. They had aimed to jointly develop technologies for diesel engines.

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.