In a bid to stave off bankruptcy, General Motors is shopping its truck unit to foreign buyers. Japanese commercial vehicle maker Isuzu Motors may bite. The two firms may find some sort of alliance helpful as they confront an increasingly bleak outlook for global vehicle demand.  The news served as another reminder of how the tables have turned in the auto industry: the smaller Japanese automakers were once prime targets for direct investment by the U.S. Big Three. If the current talks were to bear fruit, Isuzu (other-otc: ISUZY - news - people ) would get access to the North American market and broaden its truck lineup, while GM (nyse: GM - news - people ) would fulfill its need to shed assets in exchange for badly needed capital, as it scrambles for options such as a tie-up with Chrysler and solicits U.S. government help.  Isuzu was reportedly considering acquiring part of GM's midsize truck line but did not want a full acquisition, according to a Nikkei report, citing comments by Isuzu President Susumu Hosoi. The Japanese carmaker was willing to explore a stake provided that GM retained some role in its truck business, Hosoi was quoted as telling the press in Japan.  A deal could extend production of some trucks and engines that GM wanted to halt, and small-truck specialist Isuzu would get to expand its offerings of midsize commercial vehicles, which make up only about a fifth of its annual output of 270,000 vehicles. Isuzu would be able to take advantage of GM's dealership network to boost North American sales, filling a gap since its performance has been strongest in emerging markets such as Southeast Asia and Russia.  GM approached Isuzu in mid-September, and a bare-bones deal may be concluded by the end of 2008, the Nikkei had reported previously.  Isuzu and GM both face a difficult slog ahead for their truck models. Truck sales in North America and Europe are likely to sag more than expected, and emerging markets are showing signs of slumping demand amid the global financial crisis, according to a Nov. 5 Nikko Citigroup research note.  Isuzu on Thursday slashed its earnings forecast for the year by 52.9%, to 40.0 billion yen ($408.8 million). It has also been hurt by the yen's surge, which has made exports more expensive. Weak sales may be slightly offset next year by falling raw materials prices, though, the Nikko Citigroup report said.  GM and other Detroit automakers are set to meet U.S. House Speaker Nancy Pelosi Thursday to seek emergency aid. Facing double-digit U.S. sales declines in October, GM has been trying to shift more of its investment and production away from the truck segment and toward small and midsize cars.  In Thursday in Tokyo, Isuzu shares traded sharply lower, by 42.00 yen (43 cents), or 20.7%, to 161.00 yen ($1.65), thanks to the dimmer outlook the company offered shareholders.
The Japanese truck maker is said to be considering buying a part of GM's truck business, but only if GM agrees to continue producing in that segment of the industry.