This will allow them to capture opportunities in the ongoing transformation of the industry within commercial vehicles.
The Volvo Group and Isuzu Motors signed a non-binding Memorandum of Understanding with the intent to form a strategic alliance within commercial vehicles. In a first step, the intention is to establish a global technology partnership and to create a stronger, combined heavy-duty truck business for Isuzu Motors and UD Trucks in Japan and across international markets. This will entail transferring ownership of the complete UD Trucks business globally from the Volvo Group to Isuzu Motors in order to accelerate growth by leveraging greater volumes and complementary capabilities. There is good complementarity between the two Groups from both a geographical and product line perspective, with further opportunities to be explored over time.
The intended strategic alliance between the Volvo Group and Isuzu Motors will include:
- Forming a technology partnership, which will leverage the parties’ complementary areas of expertise within both well-known and new technologies as well as to create a larger volume base to support necessary, forthcoming technology investments.
- Creating the best long-term conditions for a stronger heavy-duty truck business for UD Trucks and Isuzu Motors in Japan and across international markets.
- Exploring opportunities for even broader and deeper collaboration within the commercial vehicle businesses across geographical areas and product lines, such as light- and medium-duty trucks.
All technology cooperation between the Volvo Group and Isuzu Motors will be managed through individual contracts. The Memorandum of Understanding is non-binding. The next steps will be finalizing the scope of the business to be transferred, due diligence by Isuzu Motors and negotiations of binding agreements. Signing of binding agreements is expected by mid-2020 and closing of the transaction is expected by the end of 2020. All potential transactions will be subject to regulatory and other approvals. Source