The market shift towards electric vehicles and self-driving vehicles encourages car makers to partner and merge.
Japanese company Isuzu Motors buys brand UD Trucks, owned by Volvo AB. The deal is valued at $ 2.3 billion. It will enable Isuzu Motors to team up with Volvo AB to develop electric vehicles and self-driving vehicles to reduce costs.
The combination is expected to help Volvo compete better with the German company Daimler, the Indian Tata Motors and the Chinese Dongfeng Motor. At the same time, Isuzu, a manufacturer of small and medium diesel trucks, the deal could help in the development of electric vehicles.
Volvo AB is the fifth largest truck group in the world. In addition to the Japanese UD Trucks, she owns brands such as the Swedish Volvo Trucks, the French Renault Trucks and the American Mack Trucks.
The market shift towards electric vehicles and self-driving vehicles encourages car manufacturers to partner and merge, since the costs of developing new technologies and mastering them in mass production are too high for a single company.