The two companies, on August 25, announced that they have reached a basic agreement concerning collaboration on the development, production and supply of small diesel engines.
The engine will be a 1.6-liter engine with an aluminum cylinder block for use in Toyota vehicles sold in European markets.
Isuzu and Toyota will begin discussions on the details of operations concerning development, production and supply of the diesel engine, but in principle, Isuzu will play the leading role according to azom.com. Production is scheduled to begin around 2012.
Last November Isuzu and Toyota signed a memorandum of understanding to begin studying the synergic effects of business collaboration to mutually utilize their management resources in the fields of R&D and production, and to supplement each other's technological development. Since then, the two companies have conducted investigations with the aim of reaching agreement on the specific details of the business collaboration.