June 27, 2008 - Isuzu Motors Ltd, Japan's biggest maker of trucks and buses, has finally quit its Chinese joint venture company Guangzhou Isuzu Bus Co. Ltd, which it formed with Guangzhou Auto eight years ago, according to a recent announcement from China's National Development and Reform Commission (NDRC).
NDRC said on its official website that the name of the joint venture will be changed, and current production will continue for a while but no more Isuzu model will be introduced in future.
The divorce comes after an eight-year-long unsuccessful partnership. Insiders say the result will benefit both Guangzhou Auto and Isuzu Motors. On the one hand, Guangzhou Auto can accelerate its restructuring process and get prepared for its IPO; on the other hand, Isuzu can put focus on its another Chinese partner, the Chongqing-based Qingling Auto.
Guangzhou Auto has set up a $200 million joint venture with Japan's Hino Motors last December to produce commercial vehicles, including trucks and buses. Hino and Guangzhou Auto will each hold 50 percent stakes of the joint venture.
The Guangzhou Isuzu Bus Co. was formed in March 2000 with Isuzu holds a 49% stake and Guangzhou Auto the other 51 percent. The joint venture was intended to produce Isuzu's large-sized buses including the Gala, E-, S- and V- series.
The joint venture facility has a designed annual capacity of 800 buses and 400 chassis. However, it has produced less than 200 buses a year, according to statistics provided by China Association of Automobile Manufacturers.
