Toyota's Isuzu investment gives automaker diesel technology

Although widely viewed as a leader in alternative propulsion, Toyota has arguably lagged behind the competition in the diesel arena. But that may be about to change, according to a report by Automotive News.

It turns out Toyota's acquisition of 5.6 percent of Isuzu last week for $375 million may have been an inexpensive solution to the company's diesel needs. The deal gives Toyota access more than 800 experienced diesel engineers, according to the report. These engineers are the same team that developed GM's Duramax engine range for trucks.

"We think we need to strengthen our diesel capabilities," Toyota's Katsuaki Watanabe says. "We anticipate the growth of diesel engines going forward." Toyota has focused on hybrids in recent years, but demand for clean diesels is also growing, and it appears the automaker now recognizes this reality.