When the first rumors of a possible tie-up between Volkswagen and Isuzu were floating around, they were vigorously denied by Isuzu, and meekly (“currently not on the agenda”) denied by Volkswagen. Here they are again. The Nikkei [sub] writes without the usual qualifications that „Isuzu Motors Ltd. and Volkswagen AG have begun negotiating a tie-up involving the mutual supply of truck engines and related technologies, a move that could create a formidable force in emerging markets.”
According to the report, if that engine deal progresses well, “they will also consider acquiring stakes in each other.”
The Nikkei heard that “Isuzu would supply midsize diesel engines to Volkswagen, while the German automaker would provide advanced technologies to the Japanese partner. They would also begin joint procurement of engine components.”
When they say midsize, they are talking truck engines, a 7-liter-class diesel engine for commercial vehicles produced by Volkswagen group firms, such as MAN SE.
Toyota still holds a 5.9 percent stake in Isuzu.