As Toyota attempts to tighten its belt in response to dwindling sales, the automaker announced that it has suspended its joint venture with Isuzu to produce a small diesel powertrain. Toyota had acquired a stake in Isuzu in 2006 primarily for the automaker’s diesel expertise. The joint-venture powertrain was set to appear in European Toyotas in 2012.
“A decision was made early this month to suspend the project,” a Toyota spokesman told Reuters, citing slumping sales.
The engine was said to be a 1.6-liter diesel and it was expected to be featured in a variety of Toyota vehicles in Europe with North American sales a possibility in the future. Toyota was said to be watching the North American diesel market closely and evaluating whether to import the engine at a later date.
Toyota is said to be reviewing all products in the pipeline as it looks for ways to cut costs.
12/22, 4:20 PM
posted by:
Borat
Obviously with cheapest gas in 5 years we are not going to see diesels any time time soon. I thought Toyota already has good enough 1.6L diesel for BMW MINI. You see a lot of Toyotas in Europe with 2.0L diesel, actually I haven’t seen many gasoline engines, so I reckon they are doing OK with diesel without Isuzu investment.
12/23, 2:43 AM
posted by:
The Stig
Some brilliant future thinking here…NOT.