Isuzu Motors will source diesel engines for its new Indian-made pickup trucks from General Motors in order to cut development costs.
The Nikkei reported Isuzu plans to buy in about 100,000 engines made at GM’s factory in India. The engines use some Isuzu technology and the move will allow the Japanese automaker, which plans to start making the low-cost truck in 2016, to make it affordable to customers in India and Africa.
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The cooperation will further strengthen ties between the two companies. GM is eager to tap Isuzu’s strength in southeast Asian markets and its diesel technology, while Isuzu wants to share development costs.
GM took a stake in Isuzu in 1971 and at one point owned almost 50% before selling the holding down. The American company sold its remaining 7.9% in 2006 for US$300m.
The companies, which worked together on trucks such as the Chevrolet Colorado mid-size pickup, sold as the i-Series by Isuzu, still cooperate in some areas, including sales in Latin America and South Africa, and jointly developed the updated Isuzu D-Max in 2011.
