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Isuzu May Expand Diesel Engine Supply to Toyota

Isuzu Motors Ltd President Susumu Hosoi on Wednesday indicated that the a new diesel engine being codeveloped with Toyota Motor Corp may be used not only in cars for the European market but also in models intended for other regions.

Under their partnership, Isuzu and Toyota plan to start production of the new diesel engine around 2012 for use in Toyota models targeted at the European market.

"It is unlikely that this will be limited to Europe from the viewpoint of costs," Hosoi said in an interview, referring to the need to cut the manufacturing costs by expanding production volume.

Hosoi said the new engine may also be used in Isuzu cars, although he noted that the two companies have not yet discussed specifics relating to this matter.

Isuzu plans annual production of around 20,000 units of the new engine, Hosoi said. The location of the production has yet to be decided.

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