[car fanatics]

Source
Photo credit: General Motors
April 30, 2012
By: CF staff

GM will begin talks about taking an around 10 percent stake in Isuzu, as the two carmakers look to jointly sell commercial vehicles in Asia and in Central and South America, the Nikkei business daily said on Sunday.

If realized, the deal would revive a 35-year capital alliance that was scrapped during GM's 2006 restructuring. It may also prompt Toyota to sell its 5.9 percent stake in the Japanese truck maker because the GM link-up would compete with its own established markets in Asia.

[BasiliskSt]

These minority stake ownership stakes in niche players have tended to be a capital trap for the investing big company in the past. I'm curious about the business case. GM's done better owning GM Korea than ever as a minority player in Daewoo, Izuzu, or a long list of others. Need more information about how GM makes money in the deal.

[Cmicasa the GreatXvX]

^^^ Diesels. I'm in the kno that Isuzu via Dmax is getting ready to kick out something real nice to handle GM's new push into the diesel market.. both here and China. I will say that the next Gen GMTs in SUV form.will also be having Diesels as well. Imagine a Tahoe... with Dual-Mode tech.. sporting a 350HP/500lb torque diesel getting 35MPG. Not to mention a slew of normally unlikely cars getting diesel tech from GM's tie-up with PSA.

[Cmicasa the GreatXvX]

OH!!! And it doesn't hurt that Isuzu would ratrher have GM with a majority stake than Toyota. Toyota is SHIT

[BasiliskSt]

Diesels makes some sense, particularly in trucks given Isuzu's reputation for diesels. If it's a technology buy I can see it.

It can't be a market access to Japan buy. One, Japan is saturated. Two, Japan is both de facto and de jure biased in favor of domestic producers.

I could also see some Asian countries where Isuzu trucks are well positioned where Isuzu needs more horsepower marketing or more offerings like an Isuzu diesel powered world Colorado.

But it still means capital tied up in an illiquid (inflexible) form. I hope it works out.