Printer Friendly

VOLVO PENTA AND OUTBOARD MARINE CORPORATION TO FORM JOINT VENTURE; NEW COMPANY TO PRODUCE STERN DRIVES AND INBOARD GASOLINE MARINE ENGINES

 VOLVO PENTA AND OUTBOARD MARINE CORPORATION TO FORM JOINT VENTURE; NEW COMPANY TO PRODUCE STERN DRIVES AND INBOARD GASOLINE MARINE ENGINES
 NEW YORK, June 1 /PRNewswire/ -- AB Volvo Penta of Gothenburg, Sweden, and Outboard Marine Corporation (NYSE: OM) of Waukegan, Ill., today announced the signing of a letter of intent to form a new company to produce stern drive and inboard gasoline marine power systems. The new company, which will be owned 60 percent by Volvo Penta North America, Inc. (VPNA), and 40 percent by Outboard Marine (OMC), will develop and manufacture a new generation of advanced marine propulsion systems, and provide parts and aftermarket service for these and existing products.
 The jointly-produced products will be used in boats manufactured by OMC companies and will be marketed by Volvo Penta to independent boat manufacturers worldwide under its brand name.
 The new company will acquire the existing OMC production facility in Lexington, Tenn., and will begin to manufacture products to be available beginning with the 1994 model year. Until then, the two companies will continue to produce and distribute their existing product lines. The agreement pertains to stern drives and inboard gasoline engines and does not include outboard engines.
 Parts and service support for the new products will be available through the dealer networks of both OMC and Volvo Penta. Volvo Penta currently has 4,000 dealers worldwide, 1,800 in the United States, and OMC has 10,000 marine dealers worldwide, including 4,500 stern drive dealers in North America.
 "This joint venture will provide consumers, marine dealers, and oat manufacturers with more competitive, more efficient and more technologically advanced products," according to Jan Walldorf, president of AB Volvo Penta, and chairman of VPNA. "In addition," he continued, "the expanded service capability offered by OMC and Volvo Penta service networks will benefit customers who currently use Volvo Penta and OMC stern drive products, as well as future customers who purchase products manufactured by the joint venture."
 "We believe the new company will result in improved manufacturing efficiencies in the production of stern drive units at the Lexington, Tenn., facility,'' stated James C. Chapman, president and chief executive officer of OMC. "This joint venture is a continuation of OMC's program to streamline its operations."
 Both Volvo Penta and OMC emphasized that consummation of the joint venture is not assured, and that the finalization of the joint venture is subject to completion of a formal agreement and the approval of the boards of directors of both parties and various governmental authorities, including the expiration of waiting periods under the Hart- Scott-Rodino Act. The formal agreement is expected to be finalized by the end of June, 1992.
 -0- 6/1/92
 /CONTACT: Ronald C. Kuykendall of OMC, 708-689-5642; or Dave Moody of Volvo Penta, 804-436-5119/
 (OM) CO: Outboard Marine Corp.; AB Volvo Penta ST: Illinois, New York IN: SU: JVN


TQ -- NY031 -- 5584 06/01/92 10:18 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 1, 1992
Words:486
Previous Article:PHYSICIAN COMPUTER NETWORK APPOINTS MORTELL SENIOR VICE PRESIDENT
Next Article:BELLSOUTH AND CAE-LINK ANNOUNCE TELEMEDICINE CO-MARKETING AGREEMENT
Topics:


Related Articles
VOLVO PENTA AND OUTBOARD MARINE TO FORM JOINT VENTURE; NEW COMPANY TO PRODUCE STERNDRIVES AND INBOARD GASOLINE MARINE ENGINES
VOLVO PENTA AND OMC JOINT VENTURE AGREEMENT FINALIZED
VOLVO PENTA AND OMC JOINT VENTURE AGREEMENT FINALIZED
VARITY'S PERKINS UNIT AND VOLVO PENTA JOINTLY DEVELOPING MARINE DIESELS
VOLVO PENTA MARINE PRODUCTS, L.P. ANNOUNCES NEW MARKETING APPROACH
Outboard Marine Corporation Announces Consolidation of Waukesha Research Facility
Mercury Makes Further Commitment to Clean Two Stroke Technology
Sale of OMC's Joint Venture Interest to Volvo Penta of the Americas.
Volvo Penta Ranks Highest in J.D. Power and Associates Study.
J.D. Power and Associates Reports: Mercury, PCM, Yamaha and Volvo Penta Rank Highest in Marine Engine Customer Satisfaction.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters