Toyota is now best friends with Isuzu, takes 8% share, JV for next-gen connected trucks

Toyota and its commercial trucks subsidiary Hino have announced today that it will be forming a new joint venture company with Isuzu, the world’s largest diesel engine manufacturer and Japan’s oldest motor vehicle manufacturer, to develop the next generation commercial trucks.

All three companies will form a new company called Commercial Japan Partnership Technologies Corporation. Based in Tokyo, the company will be 80 percent owned by Toyota, with the rest split evenly between Hino and Isuzu.

Toyota will acquire 39 million treasury shares in Isuzu worth 42.8 billion Yen, taking a 4.6% stake in Isuzu.

The aim of the company is to combine Toyota's expertise CASE technologies with the commercial vehicle expertise of Isuzu and Hino.

CASE refers to the next generation of Connected, Autonomous / Automated driving, Shared, Electric vehicles.

Specifically, the three companies plan to jointly work on the development of battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), autonomous driving technologies, and electronic platforms centered on the domain of small commercial-purpose trucks.

Toyota is currently testing a hydrogen fuel cell electric powertrain on a Kenworth T680 chassis in the US. Meanwhile, Isuzu already sells a range of diesel-electric hybrid small trucks in Japan. It also sells the Elf EV truck in limited quantities.  

Isuzu is Japan’s oldest vehicle manufacturer. In 1922, it assembled Japan’s first car, based on a British Wolseley A-9.

Isuzu’s expertise in diesel engines date back to 1934, and has built over 27 million diesel engines since. Its 80-plus years’ experience in diesel engines is unmatched as Isuzu makes diesel engines not just for cars, but also for ships and power generation plants.

In 1950 Isuzu developed the pre-combustion chamber design that became the industry standard for indirect injection diesel engines.

In 1981 Isuzu developed the Ultra Quick on Start (QOS) system, which eliminated engine preheating time during start-up for the first time in the world. QOS incorporated newly developed ceramic glow plugs with high heat resistance and electronic control; now an industry standard.

But as we all know, the days of combustion engines are numbered, hence the need for Isuzu to combine its resources with friendly rival Hino (commercial trucks) and Toyota (Hilux vs D-Max) to prepare for the coming decades.

Also read: All-new 2021 Isuzu D-Max to be launched in Malaysia ahead of Mazda BT-50