Renault to boost truck investment

PARIS (Jan. 20) — Renault SA plans to invest $530 million U.S. in Renault Vehicules Industriels before June as part of its efforts to help the truck unit return to profit, according to a Bloomberg News report.

RVI, which produces Mack Trucks in North America, has not made a profit in two years. The investment will be combined with a cost-cutting program, Renault said.

The report speculated that Renault will probably use the new funds to expand into new markets such as Latin America and Australia and to develop new, less polluting engines to comply with tougher emission standards in Western Europe. The company said it would work more closely with Mack on these and other product-development fronts.

Renault denied that the capital would be used to acquire another truck or car manufacturer. Recent press reports have said Renault may be in talks with Sweden’s Scania AB and Japan’s Nissan Motor Co.

Mack Trucks, based in Allentown, Pa., has performed well in recent years. The company has gained market share in North America for six straight years, the only truck-maker to do so.

Mack has diversified its product line from its traditional vocational stronghold to include new designs for the on-highway market. Mack’s newest highway tractor is expected to be unveiled to the press next month.