Volvo/Renault Close to Truck Alliance
The European press is reporting that Sweden's AB Volvo and France's Renault could announce an alliance within the next couple of weeks.
The European press is reporting that Sweden's AB Volvo and France's Renault could announce an alliance within the next couple of weeks.
According to Reuters news service, Renault would swap its RVI truck unit, including U.S. based Mack Trucks, for enough Volvo capital to make it the main Volvo shareholder.
The Financial Times of London said a likely cross-shareholding follows overtures by Volvo to buy RVI after its' proposed purchase of Scania was nixed by the European Union. Volvo reportedly rejected that offer for a broad-based alliance.
The union would create the world's second largest truck maker behind DaimlerChrysler. The combined companies would control more than 20% of the U.S. heavy truck market and 30% of the western European market. It could also give them a firm foothold in Asia where Renault owns a stake in Nissan Diesel and Volvo has a truck and bus joint venture with Mitsubishi Motors.
Details are expected to be finalized before Volvo's annual general meeting April 26 in Gothenburg.
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