Struggling truck maker Isuzu now expects a consolidated net loss of 43 billion yen ($US337 million) for the financial year ended on March 31 compared with the 25 billion yen loss it estimated in November.

Isuzu is blaming poor sales in Japan, weak export earnings, and tough conditions in the US due to high-cost incentives.

The company has denied reports in Japan that it was planning to sell its diesel engine business and that GM was planning to increase its 49% stake in the company.