Now GM to Volvo talks White
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• General Motors is back on the merger trail just five months after its disastrous attempts to gain control of Leyland Trucks.
The latest partner in line for a collaborative deal with GM is Volvo White Truck Corporation — the US sales and manufacturing arm of the Swedish truck-builder Volvo.
Few details have been revealed by either company, although the talks are known to be centring on possible collaboration in the US Class 8 heavy truck sector. However, according to Don Huss of GM's Truck and Bus Group, any deal will not affect Bedford in the UK.
Although no timetable has been set on the discussions, Huss says talks have now reached an advanced stage, while Volvo in Sweden says an announcement is "close".
GM has already tried to set up a joint commercial vehicle venture with a number of European manufacturers, including MAN and Enasa — the Spanish state-owned truck builder — but without success except in the development of military vehicles with MAN.
GM is currently experiencing the same problems with its heavy trucks sales in America as Bedford is in the UK (see page 6). Its sales in the Class 8 sector have dropped off over the last six months as the overall market has contracted.
Last year it sold 11,000 vehicles although it is already predicting a drop in sales of some 25% for 1986. GM could be looking to sell off its heavy truck activities in favour of its bigger volume medium and light truck business.
In spite of its strong home manufacturing base, GM has a smaller Class 8 share of 8.6r4 compared with Volvo White's 8.7%.