Volvo to use Scania to expand medium-duty presence

GOTHENBURG, Sweden (Sept. 14, 1999) — Volvo AB plans to expand its presence in the medium-duty truck market following its acquisition of fellow Swedish truck producer Scania AB.

According to published reports, Volvo executives said Scania would for the first time produce medium-duty trucks, while Volvo would extend its medium-truck alliance with Mitsubishi.

“The combination of Volvo, Mitsubishi, and Scania is the best of all worlds in medium trucks,” Volvo CEO Leif Johansson told the Financial Times. Scania has been considering getting into the medium-truck business for some time. It had previously looked into a joint venture with Volkswagen.

Officials with Volvo Truck North America said it is too early to comment on whether the company would re-enter the medium-duty truck market here.

However, earlier this year Volvo Truck North America CEO Marc Gustafson hinted that the company was strongly considering delivering a mid-range vehicle for North America.

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