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The tie-up will focus on development and production of small diesel engines, joint development of emission-reducing technology for diesel engines and other powertrain-related technologies, they said in a statement. Toyota President Katsuaki Watanabe and Isuzu President Yoshinori Ida are scheduled to hold a news conference at 7 p.m. (1000 GMT).
While Toyota leads the industry in most environmentally friendly technology -- notably in gasoline-electric hybrids -- it is a laggard in diesels, which are gaining traction around the world as a proven technology for reducing fuel consumption.
Isuzu, meanwhile, is known for its edge in diesels, supplying small engines to GM and Renault SA, and until recently also to Honda Motor Co.
Analysts cheered the tie-up. "It's positive for both sides," said UBS Securities auto analyst Tatsuo Yoshida, noting the ties could hasten Toyota's efforts in improving its diesel technology while enabling Isuzu to tap its partner's experience with other advanced technology. "It's especially good for Isuzu -- being under Toyota's umbrella will help as it tries to expand in emerging markets," Yoshida added.
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http://www.planetark.com/dailynewsstory.cfm/newsid/38871/story.htm