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May 2006 |
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Volvo AB
has been serious
about the Japanese market for some time and displayed a strong
presence at the last Tokyo Motor Show exhibiting not only its
truck models but also company philosophies such as safety. The
tie-up with Nissan Diesel is sure to increase Volvo’s share
in the Japanese market but it’s no change and business as
usual on our local South African front. |
Volvo AB, the world's second largest truck company, has acquired 13% shares in Japanese truck manufacturer, Nissan Diesel, from Nissan Motor. This makes Volvo the single biggest shareholder of Nissan Diesel Japan, with Nissan Motor retaining a 6% share. The company also has Renault and Mack trucks in the group.
According to Hiroshi Yokofujita, chief executive officer of Nissan Diesel South Africa, the local South African operations will remain unchanged. Volvo trucks and Nissan Diesel will remain two separate brands.
"The change has been positively received by Nissan Diesel mainly due to the interconnection of ownership between Nissan Motor, Nissan Diesel, Renault and AB Volvo. In the process, a very strong heavy commercial automotive group has been formed, providing benefits to all parties."
"Volvo AB is a respected and trusted global company with particular strength in the heavy and medium duty segments of the commercial vehicle market," says Iwao Nakamura, president of Nissan Diesel. "Nissan Diesel therefore believes that Volvo is an ideal partner for the company and expects that the deal will be very beneficial for the company's long-term growth."
As both manufacturers operate in the same industry segments, the Japanese manufacturer believes that a number of synergies between the two companies will be generated in the future. The two companies will be looking to cooperate in the fields of research and development, the advancement of new technologies, procurement and world market coverage. One of the other key areas will be the development of environmentally friendly technologies.
Volvo AB also has a keen interest in expanding its position into China, South East Asia and Japan - areas where Nissan Diesel already has a strong footprint. Nissan Motor owns 50% of the Chinese vehicle manufacturer Dongfeng Motor Co. Ltd, which is China's largest producer of trucks, with an annual production of approximately 170 000 trucks.
Volvo already has a presence in Japan brought about though its own independent efforts over the past few years. No doubt sales will increase via this new deal.
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