Volvo Could Sell Car Division, Focus On Trucks
January 7, 1999
Sweden’s Volvo appears to be considering selling its car division in order to focus on its higher-profit truck and heavy equipment divisions. The London-based Financial Times reports that Volvo has appointed a U.S. investment bank to explore a possible sale or merger of its car division.
Ford, which earlier this week said that any merger plan would not include heavy trucks, is said to be one of the possible bidders for the business. Fiat and Volkswagen have also been mentioned as possible merger partners.
Lief Johansson, Volvo’s chief executive, “has made no secret of his desire to expand Volvo’s truck, bus and construction equipment divisions, all higher-margin businesses,” reports the paper.
The additional cash reserves generated by a sale or other deal would give Volvo the ability to expand in other areas.