Isuzu Australia sees significant potential in Volvo alliance

By: Rob McKay

Details scarce on likely domestic impact of global move

Isuzu Australia sees significant potential in Volvo alliance
Andrew Harbison


Isuzu Australia Limited (IAL) has welcomed the advent of the non-binding Memorandum of Understanding between Isuzu Motors and the Volvo Group that aims to create a global commercial vehicles strategic alliance.

The alliance partners say it is designed to harness the strengths of both companies in addressing and responding to opportunities presented by the ongoing transformation of the commercial vehicle industry.

Read about the announcement of UD's planned move to Isuzu, here

"We understand that this alliance involves a global technology partnership, the transfer of ownership of the UD Truck business and the exploration of other collaboration opportunities," commented IAL director and chief operating officer Andrew Harbison says.

"Both global groups offer a broad range of high-quality, efficient and fit-for-purpose commercial vehicles and we have seen a steady stream of future-focused technology and product developments from each.

"The potential of this tie-up for the global commercial vehicle landscape is significant.

"In Australia, our customers benefit from the deep understanding of the road transport industry and comprehensive product strategy of our parent company, Isuzu Motors Limited.

"We then tailor this for the local conditions and our long-term leadership of Australian truck market is an endorsement of this customer-focused approach.

"We look forward to providing more of what the transport and logistics industries need both now and into the future, and announcements such as this confirm that Isuzu Motors has its sights fixed well into the future also."

Initial international analysis emphasises an expected annual income boost to Volvo of around an equivalent of A$308 million, a cash injection of nearly A$3.4 billion and the challenges Volvo has had with UD facing an extremely competitive market for its trucks, along with likely gains for Isuzu in Volvo’s electric and autonomous technologies and addition of UD's heavy-duty line.

Linfox, which is buying 120 UD Quons for its BevChain operation, declines to comment, with a spokesman saying there was no material change in the firm's relationship with Volvo envisaged and all that needed to be said about the Quon had been. 

Comment from Volvo Australia is has been flagged.

More to come


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