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Honda and Isuzu, which is 37.4 per cent-owned by General Motors, are to supply each other with passenger cars, four-wheel drive vehicles and trucks. Officials confirmed that Isuzu, which has been hit hard by increased costs and a slump in sales, had decided to suspend its passenger car production line.

Isuzu will supply the Rodeo jeep, produced at a US subsidiary in Indiana, to Honda, which will start selling it under the Honda name in January 1994 in the US and then in Japan. Isuzu will discontinue making passenger cars after the current model.