Isuzu to Buy UD Trucks from Volvo
Tokyo, Dec. 18 (Jiji Press)--Isuzu Motors Ltd. <7202> said Wednesday it will buy all shares in UD Trucks Corp. from AB Volvo as part of an envisioned partnership with the Swedish automaker.
Isuzu will take over the global businesses of UD Trucks, based in Ageo, Saitama Prefecture, north of Tokyo. All the procedures are expected be completed by the end of 2020.
The acquisition cost will be decided after negotiations. UD Trucks, formerly Nissan Diesel Motor Co., is seen having a business value of some 250 billion yen, according to Isuzu.
Isuzu said it will form a comprehensive alliance with Volvo on commercial vehicles for cooperation on advanced technologies including electric vehicle and autonomous driving.
Through the partnership, the two automakers will aim to survive in the global market amid intensifying competition over the development of cutting-edge technologies as well as a harsher environment from tighter emission controls and emerging Chinese automakers.
[Copyright The Jiji Press, Ltd.]