Volvo dumps Xpeditor line

Volvo Trucks North America has said it will sell its Xpeditor truck product line to Grand Vehicle Works Holdings LLC. As part of the deal, Volvo will license the Autocar truck brand name to Autocar LLC, a newly formed subsidiary of Grand Vehicle Works Holdings, and involves the assembly and sale of low-cabover Class 8 trucks and aftermarket parts. The trucks included in the deal are the Xpeditor models WX and WXLL

In addition to the license for the Autocar truck brand name, the terms of the agreement include model-specific designs, tooling and other assets, including component tooling located at supplier facilities. Upon completion of the sales transaction, there will be an up to 24-month transition period during which Volvo will continue to assemble LCOEs for Grand Vehicle Works Holdings on a contract basis.

Volvo is selling the business to comply with an agreement it entered into with the U.S. Department of Justice to obtain antitrust clearance of AB Volvo’s acquisition of Renault V.I. and Mack Trucks in December 2000.

The Class 8 LCOE segment represents less than 3% of the total heavy truck market in North America, and 8% of Volvo Trucks North America’s sales. Volvo says this divestiture will not materially impact the volume or production capabilities of its New River Valley, Va., truck assembly facility, saying no layoffs will result directly from the closing of the transaction.

-with files from Truckinginfo.com