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No Toyota-Isuzu Diesel for Europe

As part of the policy imposed by the new management of the world's biggest manufacturer, Toyota has decided not to go ahead and with the development of a diesel engine together with Isuzu Motors.

The 1.6l diesel engine was intended to power Europe-bound Toyota vehicles and was planned to be introduced in 2012. The plan for a 1.6l diesel came out of Toyota's plans to increase its 5 percent European market, according to Nikkei business daily.

Having already scrapped another 1.6l diesel last year, Toyota will head to where all expect it to head: towards hybrids. So far, the Japanese will only settle with importing the Prius from Japan, but as we already told you, a hybrid version of the Auris may go into production in the UK.

The Auris hybrid is expected to be based on the Prius, hence sharing much of its technology with today's hybrid. Still, analysts expect it will cost less than the Prius, both because it will be smaller and less equipped than its cousin.

The decision to scrap plans for a new diesel engine comes after Toyota announced it is expecting two more difficult years, on top on the disastrous one recorded last fiscal year. As the new CEO, Akio Toyda said in late June, the manufacturer wants to return back to profitability by using only 70 percent of its production capacity.

"Right now, the market is very tough. But in two years, or at most three years, it will recover so we want to make sure we have the means to meet demand then," said Niimi.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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