Volvo Group and Isuzu Motors signed ultimate agreements to type a strategic, long-term alliance (a minimal period of 20 years), hinted at in December 2019. A part of the deal is a cooperation on commercial electric vehicles.
As a part of the deal, the UD Vans will likely be acquired by Isuzu Motor for an enterprise worth of JPY 243 billion (approx. SEK 20 billion).
We guess that Volvo Group’s expertise with EVs already carried out by all its manufacturers will likely be an vital asset for Isuzu Motors. The opposite profit will likely be a better scale of the alliance and new alternatives as – in accordance with the press launch – there’s nice complementarity between the teams from each a geographical and product line perspective.
Let’s check out the details of the alliance:
- Forming a know-how partnership, meant to leverage the events’ complementary areas of experience inside each well-known and new applied sciences and creating a bigger quantity base to assist investments for world-class know-how. The know-how partnership encompasses:
– Joint growth by Isuzu Motors and UD Vans of widespread platforms for medium heavy-duty truck fashions for the Japanese- and different Asian markets, using amongst others Volvo Group know-how.
– Meant cooperation relating to new applied sciences similar to autonomous driving, connectivity and medium- and heavy-duty electrical automobiles.
- Creating the most effective long-term circumstances for a stronger heavy-duty truck enterprise for UD Vans and Isuzu Motors in Japan and throughout worldwide markets by transferring possession of the whole UD Vans enterprise from the Volvo Group to Isuzu Motors. This can speed up progress by leveraging higher volumes and complementary capabilities, creating important synergies for Isuzu Motors.
– As a primary step, Isuzu Motors and UD Vans are discussing the circumstances for provide of sure truck variants from UD Vans to Isuzu Motors from 2022 onwards.
– To safe clean enterprise continuation, the Volvo Group will present transitional providers to UD Vans, and in addition provide parts to UD Vans.
- Exploring additional alternatives for even broader and deeper collaboration inside the industrial car companies throughout geographical areas and product traces for future city logistics options. Isuzu Motors is among the world-leaders within the phase of three.5 to 15T gentle and medium-duty vehicles with volumes of 252 000 items in 2019.
- Exploring cooperation within the areas of buying and logistics, leveraging widespread know-how, in addition to the geographical footprint complementarity and quantity growth.