Nissan Diesel Motor shares rose by 19 percent to a 17-month high, extending four days of gains, Bloomberg News reported.
Nissan Diesel shares rose 26 yen to 162 yen, the stock’s highest level since October 1999.
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Bloomberg said that investors expect Volvo, the world’s second-biggest maker of heavy trucks, to seek a new Japanese partner after ending its alliance with Mitsubishi Motors.
DaimlerChrysler AG, Volvo’s biggest truck competitor, bought a 34 percent stake in Mitsubishi Motors last year, prompting many analysts to suggest Volvo will be squeezed out of its commercial vehicle pact with Tokyo-based Mitsubishi.
Volvo “may look into entering an operational alliance with Nissan Diesel,” Clive Wiggins, an auto analyst at Commerz Securities Japan Co, told Bloomberg News. “Japanese truck makers are stronger in the medium-duty segment so that can help (Volvo) fill out its lineup.”
Bloomberg said that Wiggins believes Volvo will probably opt for an agreement with Nissan Diesel to sell each other’s vehicles or work on common truck projects rather take a large equity stake in the Japanese company as it’s still having financial difficulties.
“The stock is trading at such a low level that any snippet of good news would give it a boost,” Wiggins told Bloomberg, adding that Nissan Diesel’s debt was 70 times its equity in the year ending March 2000.
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