Isuzu Motors has completed the purchase of UD Trucks from the Volvo Group for an enterprise value of $2.1 billion.
The transaction completes a deal which was first announced in 2019.
The latest models of the Japanese brand are heavily influenced by Volvo Group technology and the two firms have launched a now operational commercial vehicles strategic alliance with the “aim to capture opportunities in the ongoing industry transformation.”
The new organisation will operate a Joint Alliance Office, with facilities both in Japan and Sweden. It will remain operational for a minimum of 20 years and “is intended to address possibilities and challenges of the logistics industry of the future, maximising value and benefits for customers as well as for society.”
Driver Notes: How the Volvo Isuzu Alliance will work
The Alliance between the Volvo Group and Isuzu Motors is set to a build long-term and robust relationship. Alliance work is now entering the next phase to derive potential synergies in areas that will encompass but are not be limited to:
- Forming a technology partnership, intended to leverage the parties’ complementary areas of expertise within both well-known and new technologies and creating a larger volume base to support investments for world-class technology.
- 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 by transferring ownership of the complete UD Trucks business from the Volvo Group to Isuzu Motors.
- Exploring further opportunities for even broader and deeper collaboration within the commercial vehicle businesses across geographical areas and product lines for future urban logistics solutions.
- Exploring cooperation in the areas of purchasing and logistics, leveraging common technology, as well as the geographical footprint complementarity and volume expansion.