General Motors Co, the US based automaker will begin talks about taking an around 10pc stake in Isuzu Motors Ltd. Due to financial difficulties, the United States’ GM sold its 7.9 percent stake in Isuzu in 2006.
Thanks to a rapid recovery in its business performance, however, GM aims to revive its capital partnership with Isuzu, in hopes of establishing a joint venture in emerging economies, informed sources said.
If the talks prove fruitful, General Motors may emerge as Isuzu’s largest shareholder. Japanese trading house Mitsubishi Corp. is currently the largest shareholder in Isuzu with a 9.2 percent stake and cooperates with Isuzu in its operations in Thailand.
The two companies are expected to start negotiations in early May and are working on arranging a meeting between GM Chief Executive Dan Akerson and Isuzu President Susumu Hosoi with the goal of reaching an agreement by the summer, the Nikkei reported Sunday.
Isuzu, 5.9 percent owned by Toyota Motor Corp., is a leader in small trucks and pickup trucks with high-quality diesel engines. Isuzu and GM jointly developed and manufactured pickups when they were allied.
VW and Isuzu currently have a pickup truck joint venture in Thailand, with Isuzu supplying VW with trucks in the Southeast Asian market.
Isuzu could not be immediately reached for comment.