The report – which has been denied by both parties – cites the possibility of a business alliance in four to five areas, including joint development and large truck production in China. Other areas for co-operation under examination include engine development, sharing sales networks, parts procurement and commercial vehicle supply.

But there is some sound logic to be had here. Isuzu is biased towards the LD and MD sectors, whereas Hino has leadership at the heavy end of the Japanese truck spectrum. But, crucially, both compete in less brand-aware market sectors – Hino’s strength in the US lies in the 6.3 – 14 tonne segment and is aimed very much at the retail as opposed to professional customer. The same observation may be made of Isuzu and its smaller N series range.

In Europe, Isuzu is marketing products up to 7.5 tonnes, whereas Hino jumps in at over 24 tonnes. Hence the launch of Isuzu’s F-Series 18 tonne range in Europe – due some time in 2007 – would not result in any duplication. Add a fleet-friendly tractor unit to this mixture and a couple of Toyota LCVs, and all of a sudden, you have a complete transport range.

Key to this would be the development of a joint franchise European network. This would take some management, but would certainly not be an insurmountable challenge. Obviously, one has now to question the potential for the more formalized relationship between Scania and Hino – agreed just before MAN made its bid for the Swedish OEM.