The Volvo Group and Isuzu Motors on December 18 2019, signed a non-binding Memorandum of Understanding with the intent to form a strategic alliance within commercial vehicles in order to capture the opportunities in the ongoing transformation of the industry.
The strategic alliance is to entail a technology partnership and there is great complementarity between the two Groups from both a geographical and product line perspective, with further opportunities to be explored over time.
As part of the strategic alliance, ownership of the complete UD Trucks business globally will be transferred from the Volvo Group to Isuzu Motors. In addition, the Volvo Group and Isuzu Motors have awarded each other private importerships in selected markets, including Australia.
As part of the intent, nothing will change in the set-up for the Australian market or for our customers in the Australian market.
“We at Volvo Group Australia will continue to distribute the UD brand and support our UD Trucks Australia customers and dealer business partners,” said Volvo Group Australia in a media statement.
The Memorandum of Understanding is non-binding. The next steps will be finalising 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.
