Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Isuzu Motors' logo is seen on a model displayed at an auto show in Miami Beach/AFP

Kenya

GM and Japan’s Isuzu in talks on truck tie-up

Isuzu Motors' logo is seen on a model displayed at an auto show in Miami Beach/AFP

Isuzu Motors’ logo is seen on a model displayed at an auto show in Miami Beach/AFP

TOKYO, Jan 10 – Japan’s Isuzu Motors said Thursday it was in discussions with US giant General Motors on developing next-generation pickup trucks as a report said the two were in talks over a possible tie-up.

The firms have signed an agreement “on launching talks” to develop the vehicles and “will make an announcement at the appropriate time”, Isuzu said in a statement without releasing any more details.

The announcement came after Japan’s leading Nikkei business daily said the pair would likely reach an agreement later this month on a joint venture.

Under the reported deal, GM will start procuring about 100,000 engines for pickups from Isuzu, while looking to a possible investment in the Japanese firm.

In 2006, GM sold its long-standing minority stake in Isuzu — most of which was bought by Toyota — to generate cash as the ailing US automaker was undergoing a massive restructuring.

Last year, reports said Isuzu would spend 30 billion yen ($340 million) on building new factories in China and India to tap rising demand for pickup trucks in the fast-growing markets.

Isuzu shares closed 3.80 percent higher at 545 yen in Tokyo.

Demand for pickups has been growing in many emerging nations, partly due to poor road conditions.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...