By Ronan Glon
Monday, Apr 30th, 2012 @ 5:23 am
A report published yesterday by a Japanese newspaper indicates that General Motors and Isuzu will soon enter talks to negotiate an alliance.

General Motors is said to be interested in purchasing about 10 percent of Isuzu's capital. This would make the American company Isuzu's largest stakeholder, surpassing Mitsubishi's 9.2 percent stake.

The purpose of the alliance is reportedly to jointly design, build and sell commercial vehicles in Asia and Latin America, two key markets.

If an agreement can be reached, it will have a big effect on how Isuzu operates around the globe.

First of all, the Japanese manufacturer will logically have to put an end to alliance talks with Volkswagen. In spite of that, Isuzu will continue to provide Volkswagen with pickup trucks in Thailand.

An alliance between Isuzu and General Motors would also force Toyota to sell its 5.9 percent stake in the Japanese company.

Neither party has commented on the specific details of the alliance. The talks are scheduled to begin at an unspecified date in early May and if an agreement is reached, the final documents will be signed next summer.

General Motors and Isuzu have collaborated on commercial vehicles in the past, but the former's financial issues put an end to the collaboration in 2006.

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