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Negotiations between GM and Japanese car maker Isuzu Motors Ltd. will soon commence. The American giant is planning on buying a 10% stake in the Japanese company, with plans to jointly sell commercial vehicles throughout Asia, South and Central America. If the deal goes through, GM will become Isuzu’s largest stakeholder, followed by Mitsubishi Corp. with 9.2%.
Furthermore, the signing of the partnership will force Isuzu to end its alliance talks with Volkswagen and will also probably force Toyota to sell its 5.9% share of the company. Despite ending their talks with VW, Isuzu will still supply them with pick-up trucks in Thailand.
The partnership between GM and Isuzu would reinstate a 35-year alliance that was dropped in 2006 due to restructuring. We will just have to wait and see as officials from both sides are expected to be meeting at the beginning of May. There is a chance that in striving for its independence, Isuzu may reject the partnership and making its own products without the outside ‘help’ that GM offer.
The partnership between GM and Isuzu would reinstate a 35-year alliance that was dropped in 2006 due to restructuring. We will just have to wait and see as officials from both sides are expected to be meeting at the beginning of May. There is a chance that in striving for its independence, Isuzu may reject the partnership and making its own products without the outside ‘help’ that GM offer.
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