Publications
Partners
TOKYO, Japan - Isuzu and VW are negotiating about a truck business tie-up, according to media repots.
The two firms will soon sign a confidentiality agreement and enter into full-scale talks, with an eye to signing a deal later in 2011, the Nikkei business daily said.
They would also consider acquiring stakes in each other, according to the newspaper.
Under the plan, Isuzu would supply midsize diesel engines to VW. In return, the German automaker would provide advanced technology to the Japanese company. Together, they would also begin joint procurement of engine components.
VW ENGINE GAPS
Isuzu will likely supply a seven-litre diesel engine for VW's trucks and a three-litre diesel engine for its commercial vans and bakkies. Isuzu is the world's largest supplier of diesel engines.
From VW, Isuzu will receive engine control and body safety technology used in the German automaker's cars, it said.
The two firms may expand their co-operation to include the development of hybrids, electric vehicles and other environment-related technology, it added.
By sharing bakkie technology, VW will be able to cut costs and lower prices, crucial to boosting market share in emerging countries, the Nikkei said.
Isuzu ended a 35-year-old tie-up with General Motors in 2006 and Toyota now holds a 5.9% stake in Isuzu.
The report could not immediately be confirmed.
The two firms will soon sign a confidentiality agreement and enter into full-scale talks, with an eye to signing a deal later in 2011, the Nikkei business daily said.
They would also consider acquiring stakes in each other, according to the newspaper.
Under the plan, Isuzu would supply midsize diesel engines to VW. In return, the German automaker would provide advanced technology to the Japanese company. Together, they would also begin joint procurement of engine components.
VW ENGINE GAPS
Isuzu will likely supply a seven-litre diesel engine for VW's trucks and a three-litre diesel engine for its commercial vans and bakkies. Isuzu is the world's largest supplier of diesel engines.
From VW, Isuzu will receive engine control and body safety technology used in the German automaker's cars, it said.
The two firms may expand their co-operation to include the development of hybrids, electric vehicles and other environment-related technology, it added.
By sharing bakkie technology, VW will be able to cut costs and lower prices, crucial to boosting market share in emerging countries, the Nikkei said.
Isuzu ended a 35-year-old tie-up with General Motors in 2006 and Toyota now holds a 5.9% stake in Isuzu.
The report could not immediately be confirmed.