Read this article in:
6 August, 1999Volvo unions support the deal, Scania unions are critical of it.
Commercial vehicle manufacturer Volvo has clinched an agreement to buy the Swedish lorry and bus maker, Scania, from current owners Investor. Volvo said it had acquired a majority stake and was offering to buy the remaining shares in a deal worth $7.5bn, creating Europe's largest commercial vehicle company.
"A competitive company with two of the industry's strongest brands is being created, with major development resources and volumes, particularly in the critical diesel engine area," Volvo Chief Executive Leif Johansson said in a statement.
The opinion is divided in the local trade unions. This is a good deal, says the Volvo metalworkers' union. The Scania union is crtitcal. The Swedish Metalworkers' union supports the deal.
Volvo sold its car division to US manufacturer Ford early in 1999 to focus on commercial vehicles. The company has estimated that the new combined group would have 19% of the global truck market, which would make it second to Germany's DaimlerChrysler.
"A competitive company with two of the industry's strongest brands is being created, with major development resources and volumes, particularly in the critical diesel engine area," Volvo Chief Executive Leif Johansson said in a statement.
The opinion is divided in the local trade unions. This is a good deal, says the Volvo metalworkers' union. The Scania union is crtitcal. The Swedish Metalworkers' union supports the deal.
Volvo sold its car division to US manufacturer Ford early in 1999 to focus on commercial vehicles. The company has estimated that the new combined group would have 19% of the global truck market, which would make it second to Germany's DaimlerChrysler.