Volvo Group and Isuzu Motors aim to form an alliance

KUALA LUMPUR: Volvo Group has signed a non-binding memorandum of understanding (MoU) with Isuzu Motors, pointing towards the formation of a strategic partnership. The new partnership aims to extend their market reach globally.

The strategic alliance set between the Swedish and Japanese brands aims to capture the area within commercial vehicles to seize the opportunities in the ongoing transformation of the industry.

However, Volvo Group and Isuzu Motors already have an existing partnership on medium-duty trucks in Japan; the present step has been taken in order to establish a global technology partnership and extend the cooperation within technology, sales and service.

The partnership shares an aim to create a stronger, combined heavy-duty truck business for Isuzu Motors and UD Trucks in Japan and across international markets, entailing the transfer of the complete ownership of the UD Trucks business globally, from Volvo Group to Isuzu Motors. The said ownership transfer is said to be concluded over leveraging volumes and complementary capabilities between the two companies.

“Isuzu Motors and the Volvo Group strongly believe in the business opportunities and synergy potential between the two Groups. We intend to derive the full value from each other’s different specialities across product and geographical strongholds,” said the president and representative director of Isuzu Motors Limited Masanori Katayama.

Whereas, the CEO of Volvo Group, Martin Lundstedt exclaimed to see great potential towards extending their cooperation to Isuzu Motors for the benefit of customers and business partners.

The Memorandum of Understanding is the first step towards the establishment of a successful alliance, the next steps will be finalizing the scope of the business. The complete signing of binding agreements is expected to be completed by mid-2020 and closing of the transaction is expected by the end of 2020.

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