The Volvo Group and Isuzu Motors will establish a Joint Alliance Office, with facilities both in Japan and Sweden, which will be overseen by an Alliance Board comprising the Isuzu Motors President, the Volvo Group CEO, and other key executives from the two groups. The Memorandum of Understanding was originally signed in December 2019 and includes Isuzu Motor's acquisition of UD Trucks from Volvo Group. 

The two companies have signed an Alliance Framework Agreement for a minimum duration of 20 years, to take up the possibilities and challenges of the logistics industry of the future, maximizing value and benefits for customers as well as for society. 

"I have high expectations on this strategic alliance, which will make Volvo and Isuzu Motors even more competitive within their respective markets and segments. This is an opportunity to share technology investments and also to help each other grow. I am confident that UD Trucks will become a bridge between the Volvo Group and Isuzu Motors and that the strategic alliance will create the conditions to continue to develop UD Trucks to a new level within Isuzu Motors. I also want to express my pride at how the UD Trucks team has been able to serve customers and continue to improve financial performance also during this unprecedented period, characterized by the COVID-19 pandemic. The Volvo Group will continue to support UD Trucks, and participate in the Asian markets through this alliance," said Martin Lundstedt, President and CEO of the Volvo Group. 

The alliance is set to build a long-term relationship that will include joint development by Isuzu Motors and UD Trucks of common platforms for medium- and heavy-duty truck models for the Japanese and other Asian markets utilizing Volvo Group technology, among others. 

"This is a very exciting day. We have signed the strategic alliance agreement with the Volvo Group. The difficult and unforeseeable COVID-19 situation has made the strategic alliance even more valuable and has built a solid, trustful relationship between Isuzu and the Volvo Group. This long-term partnership will span across products, technologies and regions, and actively contribute to service improvements and strengthened customer satisfaction as well as supporting the logistics industry. I am fortunate to have UD Trucks joining the Isuzu Group. UD Trucks will play an important role of the strategic alliance for efficient and effective collaboration between Isuzu Motors and the Volvo Group," said Masanori Katayama, President and Representative Director of Isuzu Motors Limited.

Closing is expected during the first half of 2021. The transaction is subject to certain conditions, including approval from regulatory authorities.