Paper: Isuzu plans engine plant
Automotive News, June 18, 2007 - 1:00 am

TOKYO -- Isuzu Motors Ltd. will build a diesel-engine plant in Japan to supply Toyota Motor Corp.'s European demand for diesels, according to Japan's Nikkei newspaper. In 2012, Isuzu's new plant will start producing 1.6-liter diesel engines and will have capacity to make 200,000 engines a year, the newspaper said.

The engine will be developed jointly by the two companies and will be used in a Corolla-class car in Europe. The plant will be on Japan's northernmost island of Hokkaido, close to an existing Isuzu engine plant and a Toyota automatic-transmission plant. It will cost about $240 million, the newspaper said.