Isuzu Motors has formalised its acquisition of UD Trucks from the Volvo Group as part of a strategic alliance to forge a partnership in technology development and sharing, in order to strengthen their presence in the commercial vehicles sector and improve economies of scale.
Isuzu Motors and Volvo Group will establish a Joint Alliance Office, with facilities both in Japan and Sweden, which will be overseen by an Alliance Board comprising the Isuzu Motors President, the Volvo Group CEO and other key executives from the two groups.
This Alliance is tasked to build a long-term and robust relationship that will cover (but are not limited to) the following aspects:
- To form a technology partnership to leverage the parties’ complementary areas of expertise within both well-known and new technologies and create a larger volume base to support investments for world-class technology.
- To create the best long-term conditions for a stronger heavy-duty truck business for UD Trucks and Isuzu Motors in Japan as well as across international markets, by transferring ownership of the complete UD Trucks business from the Volvo Group to Isuzu Motors.
- To explore opportunities for an even broader and deeper collaboration within the commercial vehicle businesses across geographical areas and product lines for future urban logistics solutions.
- To explore cooperation in the areas of purchasing and logistics, leveraging common technology, as well as the geographical footprint complementarity and volume expansion.
The Alliance will operate for at least 20 years to synergise and develop products and solutions for the future, and to maximise value and benefits for customers.
As part of this strategic alliance, Naoto Hakamata has been appointed Chairman of UD Trucks, effective 1 April 2021. He succeeds Joachim Rosenberg, Volvo Group Executive Vice President, who resigned as Chairman. Concurrently, Tetsuya Aiba has been appointed Chief Financial Officer of UD Trucks.
UD Trucks, which started operations in 1935, has built a reputation as a leading Japanese commercial vehicles brand. It currently has market presence in over 60 countries. Known for its ‘gemba‘ spirit of offering dependable and professional products and solutions, UD Trucks had been a subsidiary of Volvo Group since 2007, and had integrated Volvo technology, procurement, logistics, production and sales processes into its operations. The company had also made concerted efforts to promote diversity, flexible ways of working, and a global mindset that embraces change.
As the finer details of the Alliance gets worked out, UD Trucks will continue operating as its own brand and business entity in its respective markets. And as such, sales and aftersales support will carry on as usual. UD Trucks will continue to fulfill its brand promise of “Going the Extra Mile”, and eventually together with Isuzu Motors, will strive to make life better for the people and the planet.