The recent signing of binding agreements to form a strategic alliance between Isuzu Motors Limited and the Volvo Group, set to build a long-term and industrious relationship, has been welcomed by Isuzu Australia Limited (IAL).
Melding the strengths of both global commercial vehicle giants is designed to respond to industry changes and capitalise on the abundant opportunity available to the broader global road transport sector.
The agreements include Isuzu Motor’s acquisition of UD Trucks from the Volvo Group for an enterprise value of JPY 243 billion (approx. SEK 20 billion). The transaction is subject to certain conditions, including approval from regulatory authorities.
“The formalisation of the alliance between Isuzu Motors Limited and Volvo Group, first announced late last year, marks a significant day for the global Isuzu family and firmly underpins the current and future strength of the organisation,” commented IAL Director and Chief Operating Officer, Mr Andrew Harbison.
The agreement formalises the transfer of complete ownership of UD Trucks from the Volvo Group to Isuzu Motors Limited, and encompasses a range of cooperative activities.
These include a technology partnership covering joint development of common platforms within the Isuzu and UD product line-ups and utilising Volvo Group technology.
“The transfer of ownership of UD Trucks from Volvo to Isuzu is an important aspect of this announcement and has been described as building a bridge in the business between Isuzu and Volvo, another substantial transformation within the broader transport industry warmly welcome here in Australia,” Mr Harbison said.
“The focus on complementary capabilities and the leveraging of volume opportunities here will be a real win for road transport equipment operators around the world.
“Further enhancing this is the intended cooperation between Isuzu and Volvo regarding the development of new technologies such as autonomous driving, connectivity and medium- and heavy-duty electric vehicles.
“Whilst the news doesn’t impact the domestic Australian market immediately, we’re excited to see where this strategic partnership will lead for our customers, with both global groups clear leaders in their fields of expertise.
“In the meantime, our local operators can look forward to continued and uninterrupted service, advice and support from IAL and our dealer network,” Mr Harbison concluded.
Further information will be provided as Australian operations are advised of next steps