A Thai truck dealer is suing the Volvo Group for THB10.5bn (US$324m) in damages for what it describes as unlawfully terminating two contracts.

Nissan Diesel Thailand, which sells vehicles made by Volvo subsidiary UD Trucks, has filed a suit in Thailand against Volvo, a spokesman for the Swedish company told AFP, without providing any further details.

Volvo's annual report said Nissan Diesel Thailand filed suit last November against the company and three of its employees, claiming its actions had led UD Trucks to "unlawfully terminate two agreements" with the dealer.

The annual report added : “Volvo considers that the plaintiff's claim is of no merit."

The Volvo spokesman said it was common for agreements with dealers to be terminated following a purchase. Volvo purchased Nissan Diesel in 2007 and has since changed its name to UD Trucks.

Nissan Diesel Thailand is a wholly owned subsidiary of Singapore-based Tan Chong International.