Swedish bus and truck maker Volvo will consider making major acquisitions as the industry moves toward increased global consolidation, chief executive Leif Johansson has said.
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“We will, with great certainty, see continued consolidation in our industries,” Johansson told shareholders at Volvo’s annual meeting, according to The Associated Press. “Our intention is to participate in such a change, to study potential acquisitions and areas of corporation.”
AP noted that Johansson did not specify what kind of acquisitions the company may consider, but said that Volvo is increasingly looking to Asia and particularly to China for growth of its key truck business. It said last month it will buy 13% in Nissan Diesel Motor from Nissan Motor for 1.5bn kronor ($US195m).
In connection with the purchase, Volvo also said it would investigate possibilities for cooperation with China’s largest truck maker, Dongseng Motor. Dongseng has around one-third of the Chinese market in both heavy and medium heavy trucks, AP added.
“The medium heavy truck segment is particularly interesting,” Johansson reportedly said.
“With a volume of 60,000 to 70,000 trucks, Dongseng is China’s largest producer of medium heavy trucks. If we established a well-functioning form of cooperation with the Chinese authorities and Nissan Motor, we would be able to form a very strong global constellation in the medium heavy truck segment,” Johansson said, according to The Associated Press.
