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by Matt Brogan

A report published in Nikkei business daily says Toyota has decided to scrap plans to co-develop diesel engines with Isuzu Motors in what is likely to be the first of a series of restructuring measures under new management.

The two manufacturers had planned to start producing a 1.6-litre four cylinder diesel engine for European built Toyotas from 2012.

The move was speculated to bolster Toyota’s European market share by 5 per cent.

Toyota will now focus on selling hybrid vehicles in Europe instead.




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