Volvo Agrees to Sell Xpeditor Business

Volvo Trucks North America has reached an agreement to sell its Xpeditor truck product line to Grand Vehicle Works Holdings LLC.

The agreement involves the assembly and sale of low-cabover Class 8 trucks and aftermarket parts. As part of the deal, Volvo will license the Autocar truck brand name to Autocar LLC, a newly formed subsidiary of Grand Vehicle Works Holdings, which will use it to market the LCOE products.
Volvo is selling its Xpeditor business to comply with an agreement Volvo entered into with the U.S. Department of Justice to obtain antitrust clearance of AB Volvo's acquisition of Renault V.I. and Mack Trucks in December 2000. The trucks included in the deal are the Xpeditor models WX and WXLL.
"We are delighted that the Autocar truck brand name will be carried on with its long history and heritage of quality and reliability," said Christopher Patterson, executive vice president, sales and marketing, Volvo Trucks North America.
In addition to the license for the Autocar truck brand name, the terms of the agreement include model-specific designs, tooling and other assets, including component tooling located at supplier facilities. Upon completion of the sales transaction, there will be an up to 24-month transition period during which Volvo will continue to assemble LCOEs for Grand Vehicle Works Holdings on a contract basis.
The transaction includes the sale of the Xpeditor name, and the rights to procure and provide aftermarket parts unique to LCOEs. The new nameplates will read Autocar Xpeditor WX and Autocar Xpeditor WXLL. Neither the Volvo trademark nor any assembly facilities are included in the transaction. Autocar LLC is expected to offer dealer agreements to many, if not all, Volvo truck dealers in creating an Autocar distribution channel.
The Class 8 LCOE segment represents less than 3% of the total heavy truck market in North America, and 8% of Volvo Trucks North America's sales. Volvo says this divestiture will not materially impact the volume or production capabilities of its New River Valley, Va., truck assembly facility, saying no layoffs will result directly from the closing of the transaction.