TOKYO: Isuzu Motors Ltd is buying Japanese manufacturer UD Trucks from Volvo Group as part of a strategic alliance, the latest sign of consolidation in the global automotive industry.
UD Trucks, which used to be part of Nissan Motor Co. before it was sold to Volvo more than a decade ago, is based in Saitama, Japan.
Isuzu, which sold 530,000 vehicles last year, is acquiring the business for 250 billion yen (RM9.5bil) in enterprise value, the companies said in a statement today.
As electric motors, autonomous capabilities and new mobility services disrupt the industry, automakers big and small have been forging alliances. Toyota has teamed up with Suzuki, Mazda, and Subaru through partnerships and equity stakes.
Such pacts are becoming ever more critical in the global auto industry as manufacturers seek to pool resources and save costs. Ford has teamed up with Volkswagen AG, while Honda and General Motors are working together.
Isuzu and Volvo said they will work to create a "global technology partnership and to create a stronger, combined heavy-duty truck business for Isuzu Motors and UD Trucks in Japan and across international markets.”