Volvo increases stake in Nissan Diesel Motor

TOKYO — Volvo AB, the second largest truckmaker in the world, has acquired 13 percent of Nissan Diesel Motor Co. for about 1.5 billion Swedish crowns ($195 million US) to strengthen its Asian operations, reports Reuters.

The deal makes Volvo Nissan Diesel’s biggest shareholder, according to the news agency. It also gives the Swedish firm a new link to China, where Nissan Diesel has an operational alliance with Dongfeng Motor Corp.

Volvo and Nissan, Japan’s second-biggest auto maker, are both affiliated to the Renault group, which already owns 44 percent of Nissan. Renault sold its truck division to Volvo in 2001.

Volvo will also have the option to buy the remaining 6 percent held by Nissan Motor within the next four years.

“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 Chief Executive Leif Johansson told a news conference.

The new deal should make for interesting supplier alliance decisions going forward as Dongfeng and Volvo have a variety of uncommon partnerships. ArvinMeritor, for example, is one of Volvo’s largest global suppliers, while Dongfeng has a deal with rival Dana.

— with files from Reuters