Isuzu Motors Ltd. and the Volvo Group has now finalized and have signed their final agreements to form a strategic alliance. The alliance will last for a minimum of at least 20 years and will take up the challenges and the growing nature of the logistics industry. The partnership will revolve around commercial vehicles in order to capture the opportunities in the ongoing industry transformation. This tie-up is also part of their Memorandum of understanding that was signed back in December of 2019.
The agreement between the two truck companies also includes Isuzu Motors' acquisition of UD trucks from the Volvo Group for the sum of 243 billion Japanese Yen. While the transaction is not final yet as it is still awaiting approval and is subject to certain conditions, it could prove vital in getting UD trucks into the Asian market.
Aside from the acquisition of UD trucks, the partnership will also share in creating new technology for the market. Both companies will share and complement each other in their respective areas of expertise to create a larger volume base to support investments for world-class technology. UD trucks will also discuss the conditions for the supply of certain truck variants to Isuzu Motors from 2022 onwards. To achieve this the Volvo Group will provide transitional services for UD trucks as well as help supply components to the brand.
Along with this, Isuzu Motors and UD trucks will be developing common platforms that both brands will be sharing with each other. These include medium heavy-duty truck models for the Japanese- and other Asian markets. These new trucks will also be utilizing the Volvo Group’s technology. The partnership will also help both brands develop new technologies such as autonomous driving, connectivity, and medium and heavy-duty electric vehicles.
With this, the final agreement signed by both Isuzu and Volvo will now establish a joint alliance office that will be both located in their respective countries of Japan and Sweden. There they will be overseen by an alliance board that is composed of Isuzu Motors Masanori Katayama, and the Volvo Group CEO Martin Lundstedt as well as other key executives representing either company.