AB Volvo and Mitsubishi Motors may be talking only to each other, but speculation regarding the demise of their planned truck union has almost become routine fare in the business press.
The latest story comes from the Monday edition of the Wall Street Journal, which, quoting sources "close to Volvo," said the company wasn't interested in maintaining its 5% stake in Mitsubishi if DaimlerChrysler, which now owns a third of the Japanese auto maker, exercises its option to buy a controlling interest in three years.
In a follow-up story, a Volvo spokesman told Reuters news service that he couldn’t rule out sale of its Mitsubishi shares, but he also said the two companies are in continuous talks regarding plans to spin off Mitsubishi’s truck unit, which would be 20% Volvo owned.
Both Volvo and Mitsubishi have previously indicated that the deal can be worked out. A sticking point now seems to be concerns by Volvo that a joint venture with Mitsubishi could give DaimlerChrysler access to its trade secrets.
DaimlerChrysler and Volvo, which recently merged with Renault V.I./Mack, are fierce rivals in Europe, and both have been aggressively seeking entry to the Asian truck market. DaimlerChrysler is finalizing a 50/50 joint venture with Hyundai to build trucks in South Korea.
The latest story comes from the Monday edition of the Wall Street Journal, which, quoting sources "close to Volvo," said the company wasn't interested in maintaining its 5% stake in Mitsubishi if DaimlerChrysler, which now owns a third of the Japanese auto maker, exercises its option to buy a controlling interest in three years.
In a follow-up story, a Volvo spokesman told Reuters news service that he couldn’t rule out sale of its Mitsubishi shares, but he also said the two companies are in continuous talks regarding plans to spin off Mitsubishi’s truck unit, which would be 20% Volvo owned.
Both Volvo and Mitsubishi have previously indicated that the deal can be worked out. A sticking point now seems to be concerns by Volvo that a joint venture with Mitsubishi could give DaimlerChrysler access to its trade secrets.
DaimlerChrysler and Volvo, which recently merged with Renault V.I./Mack, are fierce rivals in Europe, and both have been aggressively seeking entry to the Asian truck market. DaimlerChrysler is finalizing a 50/50 joint venture with Hyundai to build trucks in South Korea.
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