Volvo divests its interests in Mitsubishi
VOLVO DIVESTS ITS INTERESTS IN MITSUBISHI Volvo and DaimlerChrysler have reached an agreement covering Volvo's cooperation with Mitsubishi Motor Corporation (MMC) whereby Volvo is transferring its 3.3 percent shareholding in MMC and all rights and obligations with relation to MMC for a total purchase consideration of approx. USD 297 M (SEK 3,000 M). The book value of the assets being transferred to DaimlerChrysler amounts to SEK 2,350 M. Volvo intends to reserve the gain that arises to cover costs for development of a future medium-heavy truck program. "I am pleased that we succeeded in reaching an agreement with DaimlerChrysler and MMC," says Volvo CEO Leif Johansson. "DaimlerChrysler's major holding in MMC and the possibility to increase this holding would have made it difficult to achieve a successful long term cooperation between Volvo and MMC. "The acquisition of Renault V.I. provides the same volumes in the medium- heavy segment that MMC would have generated. By coordinating Volvo's and Renault's development resources in the medium heavy segment, we gain a less complex and quicker process and can cut development time significantly. "In most of our business areas we have established a significant presence in Asia in recent years. During the past year we more than doubled our truck sales, in Japan as well as in Asia as a whole. Particularly considering this background, I am convinced that we will be successful in our continued focus on Asia on our own behalf," concludes Leif Johansson. The distribution of MMC's Canter light truck, which currently is made through Volvo's dealers, will be taken over by DaimlerChrysler during November. The transaction requires the approval of DaimlerChrysler's Supervisory Board and the requisite authorities. April 11, 2001 For further information, please contact: Fredrik Brunell 146 31 591091 or Adi Nilson +46 31 591127 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/11/20010411BIT00110/bit0001.doc http://www.bit.se/bitonline/2001/04/11/20010411BIT00110/bit0002.pdf