Toyota to take 5.9 percent stake in Isuzu

Toyota to take 5.9 percent stake in Isuzu

James B. Treece

TOKYO -- Toyota Motor Corp. will buy 5.9 percent of truck maker Isuzu
Motors Ltd.,
the automaker said today.

Toyota will buy 100 million shares of Isuzu stock. At a trading price
today of 415
yen, or $3.52 per share, the deal is worth $352.4 million.

The tie-up is taking place for the companies to cooperate on engine
technologies,
Toyota said in a press release. A press conference is scheduled for
later today
in Tokyo.

Toyota said Isuzu will take the lead in development and production of
small diesel
engines and diesel emission control technologies. Toyota will take the
lead in environmental
technologies for gasoline engines and alternative fuels.

The stock purchase is set to take place on Friday, Nov. 10. Toyota will
buy the
Isuzu stock from trading houses Mitsubishi Corp. and Itochu Corp.

The deal is another example of Toyota linking up with an automaker that
was cast
off by General Motors.

GM sold its remained 7.9 percent ownership of Isuzu in April, after
having held
partial ownership of Isuzu since 1971. In a move to raise cash, GM sold
90 million
shares of Isuzu stock to Mitsubishi Corp., Itochu Corp. and Mizuho
Corporate Bank
for about $300 million.

In October 2005, Toyota linked up with Fuji Heavy Industries, the maker
of Subaru
cars, by buying an 8.7 percent stake in Fuji from GM for about $315
million. Toyota
has since said it will use the Subaru plant in Indiana to build Camrys.

You may e-mail James B. Treece at [email]jtreece@crain.com[/email]

On Tue, 07 Nov 2006 05:15:04 -0800, Ed White wrote:
[color=blue]
> Toyota to take 5.9 percent stake in Isuzu
>
> James B. Treece
>
> TOKYO -- Toyota Motor Corp. will buy 5.9 percent of truck maker Isuzu
> Motors Ltd.,
> the automaker said today.[/color]


Why not? Isuzu can't get any WORSE, can they?

Hopefully, like the case for buying GM, Toyota's buy in will bring the
other manufacturer UP, not haul Toyota down!

"Here, let US show YOU how to make cars more inexpensively!"

Right...

[color=blue]
>
> Toyota will buy 100 million shares of Isuzu stock. At a trading price
> today of 415
> yen, or $3.52 per share, the deal is worth $352.4 million.
>
> The tie-up is taking place for the companies to cooperate on engine
> technologies,
> Toyota said in a press release. A press conference is scheduled for
> later today
> in Tokyo.
>
> Toyota said Isuzu will take the lead in development and production of
> small diesel
> engines and diesel emission control technologies. Toyota will take the
> lead in environmental
> technologies for gasoline engines and alternative fuels.
>
> The stock purchase is set to take place on Friday, Nov. 10. Toyota will
> buy the
> Isuzu stock from trading houses Mitsubishi Corp. and Itochu Corp.
>
> The deal is another example of Toyota linking up with an automaker that
> was cast
> off by General Motors.
>
> GM sold its remained 7.9 percent ownership of Isuzu in April, after
> having held
> partial ownership of Isuzu since 1971. In a move to raise cash, GM sold
> 90 million
> shares of Isuzu stock to Mitsubishi Corp., Itochu Corp. and Mizuho
> Corporate Bank
> for about $300 million.
>
> In October 2005, Toyota linked up with Fuji Heavy Industries, the maker
> of Subaru
> cars, by buying an 8.7 percent stake in Fuji from GM for about $315
> million. Toyota
> has since said it will use the Subaru plant in Indiana to build Camrys.
>
> You may e-mail James B. Treece at [email]jtreece@crain.com[/email][/color]