Volvo and Isuzu agree on a strategic alliance

Volvo and Isuzu agree on a strategic alliance

December 19, 2019 0 By autotimesnews

Automakers have signed an optional Memorandum of Understanding to create a strategic alliance in the field of commercial vehicles. Such cooperation, according to experts, will positively affect the transformation of the industry.

Japanese automaker Isuzu Motors buys the UD Trucks brand owned by the Volvo Group. Such an acquisition will cost the Japanese about $ 2.3 billion, writes the foreign portal carscoops.com. During a mutually beneficial partnership, the parties will develop electric cars and self-driving trucks. At the same time, joint work will help companies share their experience and reduce costs. It is known that technological cooperation between the two companies will be built on individual contracts. The signing of binding agreements is scheduled for mid-next year, and the completion of the transaction with UD Trucks is expected by the end of 2020.

 Masanori Katayama, president and representative of Isuzu Motors Limited, describing the future cooperation of brands, noted that the parties intend to benefit from it in various fields. Also, such a strategic alliance will have a positive effect on customer satisfaction. Another plus point that Masanori Katayama pointed out is the anticipated revolution in logistics.