/ 5 April 2006

Volvo buys 13% of Nissan Diesel Japan

Global truck giant AB Volvo has acquired a 13% stake in truck manufacturer Nissan Diesel Japan but the transaction will leave the South African operations unchanged, the Swedish firm said in a statement on Wednesday.

Following the conclusion of the deal, AB Volvo has become Nissan Diesel’s single largest shareholder with Nissan Motor retaining a 6% share.

Nissan Diesel South Africa CEO Hiroshi Yokofujita noted that local operations would remain unchanged with Volvo trucks and Nissan Diesel remaining two separate brands in the country.

“The change has been very positively received by Nissan Diesel, mainly due to the interconnection of ownership between Nissan Motor, Nissan Diesel, Renault and AB Volvo. In the process, a very strong heavy commercial automotive group has been formed, providing benefits to all parties,” he said.

AB Volvo also has an interest of expanding its position into China and other parts of Asia, including Japan. Nissan Diesel already has a strong footprint in these countries. – I-Net Bridge