Effective 1 January 2002, Scania sold its 50% shareholding in Svenska Volkswagen AB to Volkswagen AG of Germany. Established in 1948, Svenska Volkswagen is the importer of Volkswagen, Audi, Seat and Skoda, as well as Porsche, cars in Sweden. Its market share 2001 was 18.7%.
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In a statement, Scania said that the decision results from the disappearance of the historic synergies between car and truck manufacture – cars are consumer products, while trucks are now investment products. The task of splitting the formerly common sales and service networks in Sweden, which was commenced a couple of years ago, is now largely complete.
The move leaves Scania free to focus on its core heavy-duty truck business, which is expected to announce a large deterioration in profitability in the fourth quarter.
The decision by the Scania board was subject to a ‘financial fairness opinion’ delivered by ABN-Amro Bank.
The purchase price is SEK 870 million. Estimated at approximately SEK 250 million, the profit from the sale will be reported in Scania’s results for the first quarter of 2002.
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