Local sales and support for the brand to stay same despite Isuzu alliance
Australia’s prospective and existing UD owners will see sales and support operations unchanged by Volvo’s prospective global alliance with Isuzu.
Under the global non-binding Memorandum of Understanding announced this week, Volvo aims to transfer UD ownership to Isuzu, as part of a commercial vehicles strategic alliance deal.
“The strategic alliance is to entail a technology partnership and there is great complementarity between the two groups from both a geographical and product line perspective, with further opportunities to be explored over time,” Volvo Group Australia (VGA) explains.
It continues: “In addition, the Volvo Group and Isuzu Motors have awarded each other private importerships in selected markets, including Australia.
“As part of the intent, nothing will change in the set-up for the Australian market or for our customers in the Australian market.
“Hence we at Volvo Group Australia will continue to distribute the UD brand and support our UD Trucks Australia customers and dealer business partners.”
Read what Volvo and Isuzu said about their alliance, here
The next steps will be finalising the scope of the business to be transferred, due diligence by Isuzu and negotiations of binding agreements.
Signing of binding agreements is expected by mid-2020 and closing of the transaction is expected by the end of 2020.
All potential transactions will be subject to regulatory and other approvals.