Isuzu Denies Alliance Talks with GM

President Susumu Hosoi says Isuzu Motors Ltd. is not discussing the formation of an equity alliance with General Motors Co., as has been reported.

Hosoi says the Isuzu talks to GM regularly about various ongoing projects. Isuzu acknowledges it will eventually need a partner to share the cost of developing new fuel-efficient trucks. But it says capital ties aren't necessary.

News reports have said GM initially sought more than one-third of Isuzu but scaled back its proposal to 10% when the Japanese truckmaker objected to ceding a controlling interest.

GM once owned 49% of Isuzu during their 35-year equity alliance. The partnership ended in 2008 when GM sold its remaining 7.9% stake to raise badly needed cash.