Alliance set to a build long-term and robust relationship
The Volvo Group and Isuzu Motors recently signed binding agreements to form a strategic alliance within commercial vehicles in order to capture the opportunities in the ongoing industry transformation.
The agreements include Isuzu Motor’s acquisition of UD Trucks from the Volvo Group for an enterprise value of Japanese Yen-JPY 243bn (Swedish Kroner SEK 20bn). The transaction is subject to certain conditions, including approval from regulatory authorities.
The alliance between the Volvo Group and Isuzu Motors is set to a build long-term and robust relationship that will translate into a technology partnership, intended to leverage the parties’ complementary areas of expertise within both well-known and new technologies.
The technology partnership encompasses joint development by Isuzu Motors and UD Trucks of common platforms for medium heavy-duty truck models for the Japanese- and other Asian markets, utilizing amongst others Volvo Group technology.
As a first step, Isuzu Motors and UD Trucks are discussing the conditions for supply of certain truck variants from UD Trucks to Isuzu Motors from 2022 onwards.
“I am confident that UD Trucks will become a bridge between the Volvo Group and Isuzu Motors and that the strategic alliance will create the conditions to continue to develop UD Trucks to a new level within Isuzu Motors,” affirmed Martin Lundstedt, President and CEO, Volvo Group.
“We are pleased to have UD Trucks joining the Isuzu Group. UD Trucks will play an important role of the strategic alliance for efficient and effective collaboration between Isuzu Motors and the Volvo Group,” observed Masanori Katayama, President and Representative Director, Isuzu Motors.
