GOTHENBURG, Sweden — The Volvo Group and Isuzu Motors have signed binding agreements to form a strategic alliance within commercial vehicles in order to capture the opportunities in the ongoing industry transformation.
The agreements, signed Friday, include Isuzu Motor’s acquisition of UD Trucks from the Volvo Group for an enterprise value of JPY 243 billion (about $2.3 billion), the two companies said.
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 is one of the goals of the alliance.
The two companies will establish a Joint Alliance Office, with facilities both in Japan and Sweden, which will be overseen by a board comprising the Isuzu Motors president, the Volvo Group CEO and other key executives from the two groups.
“I have high expectations on this strategic alliance, which will make Volvo and Isuzu Motors even more competitive within their respective markets and segments,” said Martin Lundstedt, president and CEO of the Volvo Group.
“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, said the Covid-19 situation had made the alliance even more valuable, and had built a solid, trustful relationship between Isuzu and the Volvo Group.
“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.”
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