Toyota and Isuzu have announced a capital alliance and fresh partnership in commercial vehicles, focusing on advanced technologies.
Toyota-owned truck unit Hino will also participate in the collaboration designed to combine Toyota's CASE technologies with the commercial vehicle foundations cultivated by Isuzu and Hino.
Specifically, the three companies plan to jointly work on the development of battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), autonomous driving technologies, and electronic platforms centred on the domain of small commercial-purpose trucks.
While working together on BEVs and FCEVs to reduce vehicle costs, the three companies plan to 'advance infrastructure-coordinated societal implementation', such as by introducing FCEV trucks to hydrogen-based society demonstrations in Japan's Fukushima Prefecture.
The three also plan to link their connected technology platforms to build a platform for commercial vehicles that can help solve customers' problems. Through this platform, they intend to provide various logistics solutions that not only help improve commercial vehicle transport efficiencies but also contribute to reducing CO2 emissions.
To promote their partnership, Isuzu, Hino, and Toyota are establishing Commercial Japan Partnership Technologies Corporation, a company for planning CASE technologies and services for commercial vehicles based on discussions among its three parent companies.
Going forward, Isuzu, Hino, and Toyota intend to deepen their collaboration while openly considering cooperation with other like-minded partners.
Capital partnership between Isuzu and Toyota
To smoothly construct and advance the collaboration announced today, Isuzu and Toyota have agreed on a capital partnership.
By way of Isuzu's cancellation of treasury stock through a third-party allotment, Toyota is scheduled to acquire 39 million shares of Isuzu common stock worth a total of 42.8 billion yen (resulting in Toyota having 4.6 percent ownership of Isuzu in terms of total issued shares as of the end of September 2020 and a post-allotment voting rights ratio at Isuzu of 5.02 percent).
Also, Isuzu plans to acquire Toyota shares of the same value through a market purchase.