The Volvo Group and Isuzu Motors has signed a non-binding Memorandum of Understanding with the intent to form a strategic alliance that will result in the ownership of the complete global UD Trucks business being transferred from the Volvo Group to Isuzu Motors. In addition, the Volvo Group and Isuzu Motors have awarded each other private importerships in selected markets, including Australia.
As part of the intent, Volvo Group Australia will continue to distribute the UD brand and support UD Trucks Australia customers and dealer business partners.
The Memorandum of Understanding is non-binding. The next steps will be finalizing the scope of the business to be transferred, due diligence by Isuzu Motors 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.