GM, Isuzu To Enter Talks On New Alliance: Report Photo:
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2012 Isuzu D-Max - Thailand Photo:
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Mike Stevens | May, 01 2012 | 0 Comments

GM and Isuzu will reportedly enter talks to discuss a new capital tie-up, six years after the American carmaker sold its 7.9 percent stake back to the Japanese manufacturer.

According to Japanese business paper Nikkei, the General could now be chasing 10 percent of Isuzu, surpassing Mitsubishi Corp (9.2 percent) as the brand's biggest shareholder.

It is unclear how the deal would affect Toyota's 5.9 percent holding - purchased just months after GM divested its shares in 2006. It may be that conflicting interests in Asian markets between these two automotive giants could see Toyota divest itself of its shares.

The report added that Isuzu will end capital tie-up talks with Volkswagen if a deal with GM is confirmed, although negotiations for supplying pickups to VW in the Thai market could continue.

So far, neither company has offered any comment on the report.

Despite GM selling its Isuzu shares in 2006 as part of a capital raising prior to its Chapter 11 bankruptcy two years later, both companies have continued to work together on new models and platforms.

Together, GM and Isuzu developed the upcoming next-generation Holden Colorado (sold as a Chevrolet overseas) and Isuzu D-Max pickups.

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