Volvo takes over the Nissan truck business


Nissan Motor Company reached a transfer agreement with Swedish Volvo Car Corporation on March 21. Nissan Motor Co. sold its 13% stake in Nissan Diesel Motor Co. to Volvo Car Corporation for 196 million U.S. dollars, a move that will strengthen Volvo's Asian strategy.

Currently, Nissan is the largest shareholder of Nissan Diesel Motors and owns 19% of its shares. The agreement will enable Volvo Cars to become the largest shareholder in Nissan's diesel industry.

It is reported that Volvo will acquire 13% of the company's shares by purchasing 40 million ordinary shares of Nissan Diesel. Through this acquisition, Volvo will obtain Nissan Diesel's distribution and service network in Japan and Southeast Asia, creating opportunities for further cooperation with Nissan Diesel in the engine and transmission fields, and the right to acquire the remaining Nissan cars in Nissan Diesel in 4 years. 6% of shares.

Nissan Diesel is the fourth-largest manufacturer of heavy-duty and medium-duty trucks in Japan, with nearly 40,000 vehicles produced in 2005. Nissan Diesel has a complete distribution and service network in Japan and Southeast Asia, and more than 90% of its products are sold by its own dealers. Nissan’s diesel has a meager profit, and its instability is the main reason Nissan Motor sells it.

As Nissan Motors owns a 50% stake in Dongfeng Motor Co., Ltd., a Chinese automaker, Volvo and Nissan Motor will also discuss with Dongfeng Motor Co., Ltd. the possibility of cooperation in the field of commercial vehicles in China.


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