The Deal
Thursday, November 26, 
12:14 am

Toyota closer to world domination

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prius.jpgToyota Motor Corp. continues its advance toward becoming the world's largest automaker by taking a 5.9% stake in former General Motors Corp. affiliate Isuzu Motors Ltd. The primary purpose of the investment is to partner on R&D related to lowering auto emissions. While on first glance, it would seem as if Toyota's been doing a reasonably good job on lowering emissions with its so-called Hybrid Synergy Drive on its own, a look at Isuzu's product line up shows that the Japanese truck maker has more experience developing diesel engines than Toyota. Considering diesel is popular in Europe and other parts of the world, cleaner diesel technology might be more quickly embraced than more expensive hybrid engines. The stake in Isuzu is not Toyota's first time pulling a jettisoned GM satellite into its sphere of influence. Last year, Toyota took a stake in Fuji Heavy Industries, the parent company of Subaru, with the promise to share its hybrid technology with Subaru in exchange for the smaller company's four-wheel-drive technology. GM freed both satellites in a move to raise cash.—Matthew Wurtzel

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