TOKYO, March 25, 2021– As foreign heavy-duty truck manufacturers consolidate amid Chinese truck makers’ surging growth in the global land transport sector and the imperatives to make rigs green, Isuzu Motor Co., a former GM-capitalized truck maker, March 24 agreed to join the Toyota Motor group and ally with the Toyota commercial vehicle unit, Hino Motors Co., in a tripartite tie-up.
The alliance, which is expected to increase Toyota’s hold of Isuzu over coming years, is a defensive move against foreign truck makers’ global expansion, particularly the Chinese truck makers that combined now hold more than 25 percent of the global truck fleet market.
Japan has four heavy-duty truck makers: Mitsubishi Diesel, which is a DCX group company; Nissan Diesel, allied with Volvo; Hino of Toyota; and Isuzu, in which Toyota currently has a minor capital interest.
After the alliance is sealed, Toyota would hold slightly more than 5 percent of Isuzu. The three companies will form a joint company that would be held 80 percent by Toyota and the remainder by Hino and Isuzu. Isuzu has a tech tie-up with Volvo and Hino with Volkswagen’s Traton unit.
Japanese passenger car makers excluding Honda Motor Co. and Mitsubishi Motor Co. have joined Toyota group – Daihatsu, Subaru, Suzuki. Mitsubishi left Nissan Motor after Nissan’s series of scandals, and Honda continues as an independent maker.
More consolidations are expected to ve inevitable for Japanese automakers as they struggle to catch up with vehicle electrification with foreigbn automakers. Save a very few, they could end up under foreign capital or become local Japanese firms, like many of those in the consumer electric and electronics industry.
###
Insight Into the Future