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Volvo b into Nissan Diesel
Page 13
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VOLVO OBVIOUSLY has its eyes fixed firmly on the rapidly expanding Asian truck market. Last week it bought 40 million shares in Nissan Diesel, the fourthlargest Japanese truck manufacturer, from Nissan Motor.
The £111.2m deal gives Volvo 13% of the shares, with an option to acquire another 6% from Nissan Motor within four years.
Volvo says: "The transaction strengthens Volvo's Asian strategy and is intended to provide Volvo with access to Nissan Diesel's dealer and service network in Japan and South-East Asia, and create a possibility for further industrial co-operation with Nissan Diesel in such areas as engines an.d transmissions."
More significantly-, the Swedish truck manufacturer reports: "Volvo and Nissan Motor are also going to assess the possibilities for co-operation in the commercial vehicle business in China together with Dongfeng Motor Co."
Should an agreement be struck with Dongfeng, also part-owned by Nissan Motor, Volvo would have clear access to the Chinese truck market which is currently exploding in terms of volume.
Or as Volvo President and CEO Leif Johansson diplomatically puts it: "Nissan Diesel's and the Volvo Group's products and geographical coverage complement one another, and this transaction opens possibilities for co-operation within production, sales and aftermarket."
Volvo will shortly be meeting with Nissan Motor and Dongfeng, along with representatives from the Chinese authorities, to discuss how best to develop the proposed joint venture which covers cars as well as commercials.