Europe’s second largest bus and coach maker, Irisbus, is set to be broken up less than two years since its formation by French auto-maker Renault and Italy’s Fiat, says the UK`s Financial Times (3/9/00).
The order, from the European Commission, to break-up the joint venture between Renault and Iveco – Fiat’s commercial vehicles division – is linked to the EU’s approval of the French Groups’ disposal to Volvo of its heavy truck business.
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The FT reports that the EU have given Renault two years to end the partnership, although both vehicle companies are expected to begin discussions soon to find a solution.
Formed in January 1999, the Irisbus venture is controlled equally between Iveco and RVI, Renault’s commercial vehicle division, accounting for 21.2 per cent of the European market. Irisbus posted maiden revenues last year totalling E1.1bn ($1.2bn), according to the FT.
