Volvo to buy a minority share in Deutz
18 July 1998
Germany's Deutz AG and Sweden's Volvo AB have signed a letter of intent to expand their cooperation with diesel engines. As part of the agreement, Volvo will acquire a 10% minority share in Deutz. The engine agreement runs both ways with Deutz becoming Volvo's main supplier of small and medium-sized diesels for construction equipment, trucks, buses, marine and industrial use. Volvo will concentrate its activities on heavier duty engines, believed to be from 8 to 16 liters, which it will also supply to Deutz to expand it's engine range.
The two companies further said they will jointly cooperate on medium-sized diesel engines. The contract is expected to be finalized this fall. Volvo's 10% share comes out of the Deutsche Bank's 38% stake in Deutz.
Source: Diesel Progress