Volvo buys big stake in Nissan's truck-building division.
The deal will make Volvo the biggest shareholder in Nissan Diesel and strengthen the Swedish firm's presence in East Asia. Nissan Diesel is currently enjoying strong sales and for the current year expects to make pre-tax profits of 32.5bn yen (pounds 160m).
Both Nissan, which employs around 4,500 staff at its Sunderland plant, and Volvo, the world's second biggest truck maker, already have close ties as both are affiliated to Renault. Renault owns 44% of Nissan and about 20% of Volvo. Volvo's investment in Nissan Diesel will give it more access to the Chinese market where Nissan Diesel has an operational alliance with Dongfeng Motor Corporation.
"Nissan Diesel's and the Volvo Group's products and geographical coverage complement one another and this transaction opens possibilities for cooperation within production, sales and aftermarket," said Volvo chief executive Leif Johansson.
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|Publication:||The Journal (Newcastle, England)|
|Date:||Mar 22, 2006|
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