Isuzu Motors has denied a report by Nikkei that the company plans to exit a diesel engine manufacturing joint venture with GM’s Opel subsidiary and cut European workforce by 10%.
The report also said that the Japanese company intended to halt development of a next-generation engine for Opel. Neither Isuzu nor GM commented on this issue.
Isuzu, which has a 40% stake in the joint venture with GM, has been producing diesel engines for Opel’s Astra, Corsa and Meriva in Poland for 13 years.
Recently GM revealed that its Europe unit suffered a $361 million operating loss in the second quarter from a $102 million profit a year earlier. That loss was actually smaller than anticipated.
At one point, GM owned as much as 49% of Isuzu before selling its stake. Isuzu said in May that it was not planning to form an equity alliance with GM.
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