The Volvo Group and Isuzu Motors have signed an agreement to form a strategic alliance within the commercial vehicles sector 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.
The two companies will cooperate regarding new technologies such as autonomous driving and connectivity.
It will also involve the 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.
Martin Lundstedt, President and CEO of the Volvo Group, says: “This is an opportunity to share technology investments and also to help each other grow. 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.”
Masanori Katayama, President and Representative Director of Isuzu Motors Limited, adds: “This long-term partnership will span across products, technologies and regions, and actively contribute to service improvements and strengthened customer satisfaction as well as supporting the logistics industry. I am fortunate 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.”
The agreed purchase price on a cash and debt free basis, enterprise value, for UD Trucks is JPY 243 billion (approx. SEK 20 billion) to be paid to Volvo at the closing of the transaction.