TOKYO - Japanese truckmaker Isuzu and Toyota stepped up their collaboration Monday, announcing they will work together to develop a system to make diesel engine exhaust cleaner.
Isuzu Motors Ltd., a Toyota partner, will work with Hino Motors Ltd., Toyota's truck subsidiary, on the green diesel technology, and to develop heavy-duty truck cabins, where the truck driver sits, both sides said in a statement.
Isuzu and Hino, which already work together producing buses and truck components, said the agreement will help cut development costs by allowing the manufacturers to share technology at a time when global ecological standards are expected to get tougher.
Last week, Tokyo-based Isuzu said it will work with Toyota Motor Corp., Japan's top automaker, to develop and produce small 1.6 litre diesel engines for Toyota vehicles sold in Europe, with production set to start 2012.
Through such deals, Toyota will be able to take advantage of Isuzu's highly reputed diesel technology.
Toyota owns a 5.9 per cent stake in Isuzu. Isuzu formed a capital alliance with Toyota in November after dissolving its tie-up with General Motors Corp. in April 2006.
Toyota and Hino said they foresee intensifying competition in the truck and bus markets around the world.
