- Isuzu will also buy Volvo AB’s UD Trucks business
- The deal is expected to be completed by the end of 2020
According to a report by Reuters, Japan’s Isuzu Motors will tie up with Volvo to develop electric and self-driving technologies. It will also buy Volvo AB’s UD Trucks business which has an enterprise value of $2.3 billion.
As per the report, the tie-up aims to help Volvo compete more effectively with Daimler, Tata Motors and Dongfeng Motor. As per the report, Isuzu’s president, Masanori Katayama said that Isuzu Motors and the Volvo Group strongly believe in the business opportunities and potential between the two groups.
Deal to be completed by the end of 2020
The deal is expected to be completed by the end of 2020. As per the report, Volvo said that it has already begun marketing battery-electric trucks. It added that this transaction will add to its operating income by about SEK 2 billion ($208 million) and increase its net cash by SEK 22 billion.
