UD and Isuzu enter into medium-duty OEM agreement
Volvo Group confirms OEM deal with Isuzu to produce UD-branded medium-duty vehicles
As Japanese diesel emissions regulations tighten this year, UD Trucks has announced an original equipment manufacturing (OEM) master agreement with Isuzu Trucks Japan for its medium-duty vehicles.
This agreement will see Volvo Group-owned UD cease production of medium-duty trucks at the company’s Ageo factory and instead offer UD-badged Isuzu F-series medium-duty vehicles for the Japanese domestic market.
According to the Nikkei Asian Review, UD is looking to concentrate on increasing heavy-duty market share in the Japanese market where the brand currently has 17 per cent of the segment.
This OEM agreement with Isuzu isn’t the first for UD as the company has also previously used Isuzu models for its domestic light-duty offerings.
In 2014, UD ended the arrangement and entered into a light-duty OE agreement with Fuso.
Volvo Group Australia has responded to the announcement by stating that UD is committed to the local market and its customers.
"UD Trucks Japan have recently announced an OEM master agreement with Isuzu for the provision of medium-duty vehicles," Volvo Group Australia communications manager Tom Chapman says.
"UD Trucks Australia is committed to meeting the demands of current and future customers with competitive product offerings."
While "details of the final agreements are still being discussed in Japan," Chapman says that Volvo Group will continue to offer its current medium-duty models in Australia and New Zealand.