Renault and Volvo agree terms of split
Page 5
If you've noticed an error in this article please click here to report it so we can fix it.
• Renault and Volvo have agreed ierrns for their separation following the Swedish shareholders' decision to call off their merger in December. Disentanglement will cost Volvo up to £635 million, clearing the way to new alliances and to the privatisation of Renault. First, the two vehicle manufacturers will swap shareholdings in each other's car operations without money changing hands. Then Volvo will buy back Renault's 45% stake in Volvo Truck Corporation, for about £520m. Renault will also get another £115m because Volvo's car business has under-performed.
Cross-sourcing of some car components will continue. But it will be some time before a decision is made on joint plans to develop a truck cab and family of engines, a Renault spokesman said.