Toyota, Isuzu to jointly build new diesel engine

Toyota Motor Corp. and Isuzu Motors Ltd. will collaborate on developing a system to make diesel engine exhaust cleaner. Toyota formed a capital tie-up with Isuzu in November 2006, when it gained a 5.9% stake in the latter, with an eye to jointly developing a new diesel engine. Isuzu Motors Ltd. will work with Hino Motors Ltd., Toyota’s truck subsidiary, on the green diesel technology, and to develop heavy-duty truck cabins. Isuzu and Hino, which already work together producing buses and truck components, said the agreement will help cut development costs by allowing the manufacturers to share technology at a time when global ecological standards are expected to get tougher. Isuzu earlier said it would work with Toyota to develop and produce small, 1.6-liter diesel engines for Toyota vehicles sold in Europe. Production is set to start in 2012. (July 12, 2007)