Nissan sells stake in Nissan Diesel to Volvo AB
03-22-06, 08:47 PM
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Nissan sells stake in Nissan Diesel to Volvo AB
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Nissan sells stake in Nissan Diesel to Volvo AB
James B. Treece | | Automotive News / March 21, 2006 - 6:00 am
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TOKYO -- Swedish truck maker Volvo ABis buying a 13 percent stake in truck maker Nissan Diesel Motor Co. from Nissan Motor Co. Ltd. for $195 million, the automaker said Tuesday, March 21.
Nissan Motor Co. has held a 19 percent stake in Nissan Diesel. The deal gives Volvo AB the right to buy Nissan Motor's remaining 6 percent of Nissan Diesel within the next four years.
Also, Nissan Motor and Volvo AB agreed to look at areas of cooperation for commercial vehicles in China, along with Nissan's joint venture company Dong Feng Motor Co.
Nissan Motor Co. Ltd. owns 50 percent of Dong Feng Motor Co. The other 50 percent of the joint venture is owned by Chinese automaker Dong Feng Motor Group.
Volvo AB now becomes Nissan Diesel's biggest shareholder.
"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," Volvo CEO Leif Johansson told a news conference by the three companies in Tokyo.
Volvo AB expects synergies from the deal while aiming to expand in the Chinese market, where it made just 200 vehicles last year in a joint venture with China National Heavy-Duty Truck corp.
"This transaction has not changed Nissan Motors' position in Dongfeng, but we have opened the door to discussions," Johansson said. "All in all, this would strengthen our strategy for commercial vehicles in Asia."
Volvo AB and Nissan Motor are both affiliated to the Renault group, which owns 44 percent of Nissan and 20 percent of Volvo.
Nissan, Japan's second-biggest automaker, has tried to end its equity tie-up with Nissan Diesel to focus on core car-making operations. Nissan Diesel, like its former top shareholder, had skirted with bankruptcy in 1999.
"Nissan Diesel has seen a turnaround in its business performance during the last four years," said Nissan CEO Carlos Ghosn, who is also CEO of Renault.
Ghosn said the deal gave Nissan Diesel, the smallest of Japan's four truck makers, a strong partner to help it develop environmental and other technologies to survive a tough market. It will continue to supply light trucks and engines to Nissan.
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HOMEPAGE » OEM »
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Nissan sells stake in Nissan Diesel to Volvo AB
James B. Treece | | Automotive News / March 21, 2006 - 6:00 am
Advertisement
Click Here!
TOKYO -- Swedish truck maker Volvo ABis buying a 13 percent stake in truck maker Nissan Diesel Motor Co. from Nissan Motor Co. Ltd. for $195 million, the automaker said Tuesday, March 21.
Nissan Motor Co. has held a 19 percent stake in Nissan Diesel. The deal gives Volvo AB the right to buy Nissan Motor's remaining 6 percent of Nissan Diesel within the next four years.
Also, Nissan Motor and Volvo AB agreed to look at areas of cooperation for commercial vehicles in China, along with Nissan's joint venture company Dong Feng Motor Co.
Nissan Motor Co. Ltd. owns 50 percent of Dong Feng Motor Co. The other 50 percent of the joint venture is owned by Chinese automaker Dong Feng Motor Group.
Volvo AB now becomes Nissan Diesel's biggest shareholder.
"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," Volvo CEO Leif Johansson told a news conference by the three companies in Tokyo.
Volvo AB expects synergies from the deal while aiming to expand in the Chinese market, where it made just 200 vehicles last year in a joint venture with China National Heavy-Duty Truck corp.
"This transaction has not changed Nissan Motors' position in Dongfeng, but we have opened the door to discussions," Johansson said. "All in all, this would strengthen our strategy for commercial vehicles in Asia."
Volvo AB and Nissan Motor are both affiliated to the Renault group, which owns 44 percent of Nissan and 20 percent of Volvo.
Nissan, Japan's second-biggest automaker, has tried to end its equity tie-up with Nissan Diesel to focus on core car-making operations. Nissan Diesel, like its former top shareholder, had skirted with bankruptcy in 1999.
"Nissan Diesel has seen a turnaround in its business performance during the last four years," said Nissan CEO Carlos Ghosn, who is also CEO of Renault.
Ghosn said the deal gave Nissan Diesel, the smallest of Japan's four truck makers, a strong partner to help it develop environmental and other technologies to survive a tough market. It will continue to supply light trucks and engines to Nissan.
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