Isuzu has signed a deal to step up its relations with Jiangling Motors, its Chinese partner in pickup truck production, by reorganising their jointly owned operation. This follows changes to its heavy truck JV with Qingling Motors last June.
The Japanese vehicle maker said it would also take a 50% stake in Jiangxi Isuzu Motors, rename it Jiangxi Isuzu Engine and produce and sell small diesel engines.
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Isuzu expects to obtain government approvals in March 2013, and begin production at the venture in early 2014, Bloomberg News, reported, citing an Isuzu statement.
On 28 June, Isuzu said it would establish new heavy truck joint venture companies in China, with local partner, Qingling Motors in Chongqing. One JV would be responsible for vehicle engineering and the second would make, purchase and export vehicle components.
“This move is intended to enhance CV business in China, the largest commercial vehicle market in the world and to boost the global competitiveness of Isuzu heavy duty commercial vehicles envisioned under the company’s mid-term business plan,” the automaker said at the time.
Demand for heavy duty commercial vehicles topped 1m units in 2010 to make China the largest CV market in the world, Isuzu noted. Its heavy truck-making JV with Qingling began output in April 2001.
The Tokyo-based truckmaker expects to build and sell about 100,000 vehicles a year. For the current fiscal year ending 31 March 2013, Isuzu aims to boost global deliveries of light commercial vehicles by 32% to 393,400 units and expects worldwide shipments of commercial vehicles to increase 11%.
