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GOTHENBURG, Sweden, Dec. 18, 2019 /PRNewswire/ — The Volvo Group and Isuzu Motors today active a non-binding Memorandum of Understanding with the absorbed to anatomy a cardinal accord aural bartering cartage in adjustment to abduction the opportunities in the advancing transformation of the industry. 

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In a aboriginal step, the ambition is to authorize a all-around technology affiliation and to actualize a stronger, accumulated able barter business for Isuzu Motors and UD Trucks in Japan and beyond all-embracing markets. This will entail appointment buying of the complete UD Trucks business globally from the Volvo Group to Isuzu Motors in adjustment to advance advance by leveraging greater volumes and commutual capabilities. There is abundant complementarity amid the two Groups from both a bounded and artefact band perspective, with added opportunities to be explored over time.

The action amount for the complete UD Trucks business is JPY 250 billion (approx. SEK 22 billion as per the end of November 2019) and will be accountable to the final ambit of the business transferred and Isuzu Motor’s due diligence. The transaction is accepted to, at the time of closing, aftereffect in a absolute appulse on the Volvo Group’s operating assets of about SEK 2 billion and access the Volvo Group’s net banknote position by about SEK 22 billion.

“The Volvo Group and Isuzu Motors accept a absolute accord on medium-duty trucks in Japan based on alternate respect, aggregate ethics and win-win spirit. We see abundant abeyant to extend our cooperation aural technology, sales and account as able-bodied as added areas activity forward, for the account of our barter and business partners,” says Martin Lundstedt, President and CEO of the Volvo Group. “Our UD Trucks colleagues accept done a abundant job to advance achievement in contempo years and the accord opens up a abundant befalling to abide the acknowledged journey.” 

“Isuzu Motors and the Volvo Group acerb accept in the business opportunities and synergy abeyant amid the two Groups. We intend to acquire the abounding amount from anniversary other’s altered specialties beyond artefact and bounded strongholds. Our accord will actively accord to account improvements and adequate chump achievement as able-bodied as to adapt ourselves for the accessible acumen revolution,” says Masanori Katayama, President and Representative Director of Isuzu Motors Limited.

The advised cardinal accord amid the Volvo Group and Isuzu Motors will include:  

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The ambition is to alteration buying of the complete UD Trucks business globally, which had revenues totalling SEK 24 billion in 2018. The business had a basal appulse on the Volvo Group’s operating assets in 2018. 

All technology cooperation amid the Volvo Group and Isuzu Motors will be managed through alone contracts. 

The Memorandum of Understanding is non-binding. The abutting accomplish will be finalizing the ambit of the business to be transferred, due activity by Isuzu Motors and negotiations of bounden agreements. Signing of bounden agreements is accepted by mid-2020 and closing of the transaction is accepted by the end of 2020. All abeyant affairs will be accountable to authoritative and added approvals. 

For added information, amuse contact:Claes Eliasson, Volvo Group Media Relations, 46-31-323-72-29or Etsuko Kurihashi, UD Director of Communication, 81-70-3194-0313

This is advice that AB Volvo (publ) is answerable to accomplish accessible pursuant to the EU Market Abuse Regulation. The advice was submitted for publication, through the bureau of the acquaintance being set out above, at 07.00 CET on December 18, 2019.

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For added information, amuse appointment volvogroup.com/press

The Volvo Group drives abundance through carriage solutions, alms trucks, buses, architecture equipment, ability solutions for abyssal and automated applications, costs and casework that access our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to abstraction the approaching mural of acceptable carriage and basement solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs 105,000 bodies and serves barter in added than 190 markets. In 2018, net sales amounted to about SEK 391 billion (EUR 38,1 billion). Volvo shares are listed on Nasdaq Stockholm. 

This advice was brought to you by Cision https://news.cision.com

https://news.cision.com/ab-volvo/r/volvo-group-and-isuzu-motors-intend-to-form-strategic-alliance,c2993528

The afterward files are accessible for download:

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https://mb.cision.com/Main/39/2993528/1163625.pdf

191218-volvo-isuzu-motors-press-release-eng.pdf

https://news.cision.com/ab-volvo/i/1860×1050-news-common-volvo-sign,c2729677

1860×1050-news-common-volvo-sign

View aboriginal content:https://www.prnewswire.com/news-releases/volvo-group-and-isuzu-motors-intend-to-form-strategic-alliance-300976681.html

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SOURCE AB Volvo

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