However, Volvo sees "little hope" of striking a deal soon with Navistar as "it takes two to tango," the source remarked. He declined to be more specific.
The company source noted, though, that renewed interest by International in a deal "must occur within days, not weeks" as "the clock is ticking."
International is the largest maker and seller of medium-duty and heavy-duty commercial trucks, school buses and diesel engines in North America. It produced more than 124,000 units of trucks, buses and bus chassis (including 22,200 units of school buses), and 416,000 units of engines at seven manufacturing facilities last year in the United States, Canada and Mexico.
Volvo is the fifth largest maker and seller of heavy-duty commercial trucks in North America. It built more than 33,500 units of Class 8-type vehicles in the United States during 1999.
Volvo ended talks last December with Navistar about a possible acquisition and turned its attention to Renault's commercial truck unit, Renault Vehicules Industriels, as it accelerated negotiations with the firm a month later. Mack Trucks Inc., fourth largest seller of heavy-duty commercial trucks in the United States, Canada and Mexico, is a unit of Renault Vehicules Industriels.
Volvo attempted one year ago to acquire Navistar for nearly $3.00 billion in cash. But consistently rising market valuation of the transaction occurred as word of negotiations leaked to the financial markets. It reportedly priced the assets excessively high and scuttled a deal.