Isuzu is no longer the last remaining major truck make not aligned to a global truckmaker supergroup – with confirmation of the strategic alliance with the Volvo Group announced almost a year ago.
Also confirmed, as part of the deal, is the Volvo Group’s sale of UD Trucks to Isuzu Motors for 243 billion Yen (equal to around $NZ3.4billion).
The announcement that the deal has been finalised came hard on the heels of rival TRATON agreeing terms to buy out Navistar International – giving it a long-sought strategic foothold in the huge North American market.
Volvo and Isuzu announced that they have signed binding agreements to form the strategic alliance (for a minimum of 20 years) “in order to capture the opportunities in the ongoing industry transformation.”
The two companies will form a technology partnership, intended to leverage their complementary areas of expertise “within both well-known and new technologies” and to create “a larger volume base to support investments for world-class technology.” 
That partnership will see joint development, by Isuzu and UD, of common platforms for medium-duty and heavy-duty trucks for the Japanese and other Asian markets, “utilising, amongst others, Volvo Group technology.” 
The alliance partners will also co-operate on new technologies such as autonomous driving, connectivity and medium and heavy-duty electric vehicles.
The Isuzu Motors buyout of UD will create “the best longterm conditions for a stronger heavy-duty truck business” for both makes in Japan and internationally, the alliance partners believe.
This will accelerate growth by leveraging greater volumes and complementary capabilities, creating significant synergies for Isuzu Motors: “As a first step, Isuzu Motors and UD Trucks are discussing the conditions for supply of certain truck variants from UD Trucks to Isuzu Motors from 2022 onwards.”
As UD transitions to its new ownership, “to secure smooth business continuation,” the Volvo Group will provide transitional services and components to UD Trucks.
The alliance will also explore “further opportunities for even broader and deeper collaboration within the commercial vehicle businesses across geographical areas and product lines for future urban logistics solutions.” 
Volvo Group president and CEO Martin Lundstedt says he has “high expectations on this strategic alliance, which will make Volvo and Isuzu Motors even more competitive within their respective markets and segments. This is an opportunity to share technology investments and also to help each other grow.
“I am confident that UD Trucks will become a bridge between the Volvo Group and Isuzu Motors and that the strategic alliance will create the conditions to continue to develop UD Trucks to a new level within Isuzu Motors.”
Isuzu Motors president and representative director Masanori Katayama says: “The difficult and unforeseeable COVID-19 situation has made the strategic alliance even more valuable and has built a solid, trustful relationship between Isuzu and the Volvo Group. 
“This longterm partnership will span across products, technologies and regions, and actively contribute to service improvements and strengthened customer satisfaction, as well as supporting the logistics industry.”