Volvo And Mitsubishi Sign Agreement
December 13, 1999
Volvo and Mitsubishi Motors Corp. have signed a final agreement covering a strategic alliance between the two companies.
Volvo has acquired 48.5 million shares, or 5% of the votes and capital in Mitsubishi Motors for 29 billion yen ($284 million).
Mitsubishi will form a new truck and bus subsidiary in which Volvo will hold an ownership interest. As a first step toward forming this subsidiary, Mitsubishi will establish an internal division for its truck and bus operations by April.
In the second step, which must be completed by the end of 2001, Mitsubishi will form a subsidiary that will include Mitsubishi's total operations for development, production and marketing of trucks and buses. Volvo will own 19.9% of this subsidiary.
Volvo and Mitsubishi will also jointly develop the next generation of medium-duty trucks, begin joint component purchasing programs, and exchange information about future technologies and sharing of heavy duty components.