Volvo acquisition of Renault V.I./Mack official

GOTHENBURG, Sweden (Jan. 4, 2001) — Volvo AB officially gained ownership Mack Trucks and Renault V.I. on Tuesday, Jan. 2, transferring 15% of its shares — worth about $1.5 billion US — to French-based Renault SA.

The deal, finalized last July, makes Volvo AB the second-largest truck manufacturer in the world and the second-largest in North America, behind DaimlerChrysler.

The European Union and U.S. Department of Justice approved the sale on conditions that Volvo sell assets that could create anti-trust concerns. In North America, Volvo agreed to sell its low-cab-forward Xpeditor line within the next three months. Mack and Volvo’s heavy-duty low COE lines together account for about 86% of the U.S. marketplace.

Volvo has said it will manage the Volvo, Renault, and Mack brands via a new business division, Volvo Global Trucks. Tryggve Sthen, currently CEO for Volvo Trucks, will be chief executive officer.