Skip advert
Advertisement

Volvo and Isuzu enter commercial vehicle partnership

The two manufacturers will sign an agreement, which could see the Volvo-owned UD Trucks brand transferred to Isuzu Motors

Volvo and Isuzu merger

Volvo and Isuzu will sign an agreement in the middle of 2020, which could see the two manufacturers enter a heavy duty commercial vehicle partnership. The proposed merger would transfer the Volvo-owned HGV brand, UD Trucks, to Isuzu Motors in its entirety, to the benefit of increased production volumes and a broader market reach. 

Advertisement - Article continues below

The UD Trucks brand had revenues totalling SEK 24 billion (£1.95 billion) at the end of 2018. However, it has struggled financially under Volvo’s ownership, bearing only a “minimal impact” on the Swedish firm’s operating income throughout 2018 and 2019.

FCA and PSA merger agreed

Global orders across the UD Trucks portfolio decreased by 45 per cent during 2019, while the brand’s operating income has showed a downward shift of 16 per cent since 2018. Volvo’s share of the HGV market has also decreased from 16.2 per cent in the third quarter of 2018 to 15.2 per cent at the end of 2019.

Volvo forecasts that, once the agreement has been finalised and signed, it will increase its operating income by SEK 2 billion (£162 million) and boost its net cash position by SEK 22 billion ( £1.7 billion).

Full details on the proposed merger are yet to be confirmed. Thus far, the pair have stated they will form a technology partnership which will provide the best conditions for UD Trucks’s expected growth – especially in the Japanese market. The pair also plan to explore further light- and medium-duty commercial vehicle projects.

Martin Lundstedt, President and CEO of the Volvo Group, said: “We see great potential to extend our cooperation within technology, sales and service as well as other areas going forward, for the benefit of our customers and business partners. Our UD Trucks colleagues have done a great job to improve performance in recent years and the alliance opens up a great opportunity to continue the successful journey.”

What do you make of Volvo’s proposed merger with Isuzu? Let us know in the comments section below… 

Skip advert
Advertisement

Find a car with the experts

Skip advert
Advertisement

Recommended

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
New cars coming soon header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
23 Jun 2025
New Volvo EM90 2025 review: the ultimate SUV killer
Volvo EM90 - front

New Volvo EM90 2025 review: the ultimate SUV killer

Volvo has made an ultra-luxurious van. Intrigued? You should be, but sadly it’s for China only
Road tests
20 Jun 2025
Buckle up! Volvo's new 'super seatbelt' could transform car safety
Volvo EX90 - front cornering

Buckle up! Volvo's new 'super seatbelt' could transform car safety

New multi-adaptive seatbelt pretensions according to real-time crash data, as well as occupants’ dimensions
News
5 Jun 2025
Tesla struggles in new driver-assistance tests with Autopilot name deemed misleading
Tesla Model 3 - front cornering

Tesla struggles in new driver-assistance tests with Autopilot name deemed misleading

Tesla struggles in new Euro NCAP driver-assistance tests with Autopilot name deemed “inappropriate” by safety body
News
4 Jun 2025

Most Popular

Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal
BMW M5 Touring - front action

Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal

The BMW M5 Touring is M car royalty, with a thoroughly impressive PHEV powertrain. It’s our Deal of the Day for 29 June
News
29 Jun 2025
Electric car appeal is at its lowest since 2019
Opinion - Kia EV9 GT

Electric car appeal is at its lowest since 2019

From poor electric car sales to crashes in F1, Mike Rutherford thinks its been a crazy few weeks in the automotive world
Opinion
29 Jun 2025
New Skoda Epiq vRS to headline brand’s hot-SUV onslaught
Skoda Epiq vRS exclusive image

New Skoda Epiq vRS to headline brand’s hot-SUV onslaught

Every future Skoda will get the go-faster treatment, with the brand also working on making cars sharper and more engaging
News
27 Jun 2025