Mitsubishi Corp. is reported to be investing in truck maker Isuzu Motors in an effort to strengthen a Thailand-based partnership between the two companies.
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According to the Associated Press (AP), Isuzu president Yoshinori Ida said that his company’s partner General Motors has also been asked to invest more in Isuzu and that GM is considering the request.
Mitsubishi Corp. reportedly said it was still undecided about whether or when the 11.75 million preferred shares, valued at 9.4 billion yen ($US90 million; €69.09 million), it is buying in Isuzu will be changed into ordinary shares.
Isuzu refused to say how much it was paying for the shares, AP said, adding that Mitsubishi Corp. now owns 0.3% of Isuzu, which is in turn 10% owned by General Motors. The two companies have worked together in Thailand selling Isuzu pickup trucks.
AP noted that Isuzu later confirmed that Mitsubishi was buying the preferred shares and added that Japanese trading house Itochu Corp. was also buying preferred shares in Isuzu, worth about 7 billion yen ($67 million; €51 million).
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By GlobalDataMitsubishi told the Associated Press it was approached by Isuzu and agreed to the deal because it wanted to help stabilise the company, which after years of deep losses, has been struggling to make a turnaround by reducing jobs and cutting back on projects.
AP said that Mitsubishi Corp. is an investor with other Mitsubishi group companies as well as in automaker Mitsubishi Motors Corp., and Mitsubishi Fuso Truck and Bus Corp.
The deal with Isuzu will allow Mitsubishi to expand its auto business, especially in Asia, the report added.
