Volvo: Deals Possible In China, Japan, Russia

Posted on August 21, 2006

Volvo is considering acquisitions in Japan, China and Russia in order to reach its growth target, chief executive Leif Johansson said. "Given our growth target of 10 percent, to do that wholly organically is almost impossible," Johansson told the Financial Times newspaper. "A significant part of that will come from acquisitions."

He said the company would "take a look at anything within our business areas.

"I don't think that we will add another business area but we could well look at a wider product range."

He said Volvo could consider expanding its 13 percent stake in Nissan Diesel of Japan, in which it has the option of increasing its interest to 19 percent within four years.

Volvo is likewise in talks with the Chinese truck maker Dongfeng on a possible alliance, Johansson told the Financial Times. "We are discussing doing something bigger in China," he said.

In addition, the company would consider a bid for a Russian truck maker. "I would not rule out acquisitions in Russia if we could make them in a good way," Johansson told the paper.