Volvo Group Australia has revealed that it intends to continue to distribute UD Trucks in Australia even after the impending sale of the brand to UD is completed late in 2020.
Volvo Australia has issued a statement saying that as part of the strategic alliance, that will see ownership of UD Trucks globally transferred to Isuzu Motors, the Volvo Group and Isuzu Motors have also awarded each other private importerships in selected markets, including Australia.
“As part of the intent, nothing will change in the set-up for the Australian market or for our customers in the Australian market,” the statement says.
“Hence we at Volvo Group Australia will continue to distribute the UD brand and support our UD Trucks Australia customers and dealer business partners,” it added.
Volvo says that the strategic alliance will entail a technology partnership and that there is great ‘complementarity’(if there is such a word) between the two Groups from both a geographical and product line perspective, with further opportunities to be explored over time.
The statement also points out interestingly, that the Memorandum of Understanding is non-binding
The statement goes on to explain that rthe next steps will be finalising the scope of the business to be transferred, due diligence by Isuzu Motors and negotiations of binding agreements. Signing of binding agreements is expected by mid-2020 and closing of the transaction is expected by the end of 2020. All potential transactions will be subject to regulatory and other approvals.
Meanwhile Isuzu Australia boss Andrew Harbison welcomed the announcement of the deal and says the potential for the tie-up for the global commercial vehicle landscape is significant.
“We understand that this alliance involves a global technology partnership, the transfer of ownership of the UD Truck business and the exploration of other collaboration opportunities,” said Harbison.
“Both global groups offer a broad range of high-quality, efficient and fit-for-purpose commercial vehicles and we have seen a steady stream of future-focussed technology and product developments from each,” he added
“The potential of this tie-up for the global commercial vehicle landscape is significant,” he said.
“In Australia, our customers benefit from the deep understanding of the road transport industry and comprehensive product strategy of our parent company, Isuzu Motors Limited.
“We then tailor this for the local conditions and our long-term leadership of Australian truck market is an endorsement of this customer-focussed approach.
“We look forward to providing more of what the transport and logistics industries need both now and into the future, and announcements such as this confirm that Isuzu Motors has its sights fixed well into the future also,” Mr Harbison concluded