Volvo to Focus on Parts Production With Nissan
olvo AB said it is focusing more on building components with Nissan Diesel Motor Co., in which it owns a 13% stake, than entire trucks, Bloomberg reported Tuesday.
Volvo Chief Executive Officer Leif Johansson told Bloomberg that making parts together, such as power train engines, and linking distribution networks made the most sense in the partnership, though he added the two have not ruled out any possibilities, Bloomberg reported.
Volvo hopes the stake will help the company expand in Asia, where demand for commercial vehicles is growing faster than in Western Europe, Bloomberg said.
Volvo AB is the parent company of U.S. truck manufacturers Volvo Trucks North America and Mack Trucks.
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