Volvo 1998 Annual Report Download - page 13

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11
Meritor takes over Volvo’s production of rear axles
During 1998 Volvo Trucks and the American producer of rear axles, Meritor Inc,
concluded an agreement covering Volvo’s global supply of rear axles. Effective at
turn of the year 1998/1999 Volvo’s factory in Lindesberg, Sweden was trans-
ferred to Meritor but will continue to supply rear axles for Volvo Truck’s
production in Europe. Meritor is assuming the responsibility for developing
future generations of rear axles and will supply Trucks’, Buses’ and Construction
Equipment’s assembly plants with rear axles in the future.
Changes in Volvo’s industrial structure
A number of other changes were made in the Group’s structure in 1998 for the
purpose of improving operating efficiency.
Cars closed the final-assembly plant in Halifax, Canada in December 1998
and Buses decided to concentrate production in Poland, which successively
effects parts of the European plants in Austria, Finland, Scotland and Germany.
At the end of 1998 a decision was made to shut down production of excavators
in Eslöv, Sweden.
Cars’ wheel assembly plant in Kungälv was sold to MC Syncro NV and a
decision was made to sell Volvo’s share of 49% in ABB Olofström Automation
AB to the majority owner, ABB.
An agreement was reached in December 1998 regarding Cars’ and
Mitsubishi’s acquisition of the Dutch Government’s interest in the NedCar car
BRS Truck Rental & Hire was
purchased in February 1998
by Volvo Trucks, strengthening
its position in Great Britain.
Nova BUS, a leading city bus
manufacturer in the US and
Canada, was acquired in
January 1998. Nova Bus holds
a 26% market share in North
America in this segment.
In the beginning of 1998,
Volvo acquired the Finnish
bus body manufacturer
Carrus Oy as part of the aim
to produce complete buses to
a greater extent.
Samsung Heavy Industries’
construction equipment
division which was acquired in
July 1998 forms an industrial
and marketing base for
Construction Equipment’s
business in Asia.
Strategic acquisitions
In early 1999, 13% of the
voting rights in Scania AB
were acquired.
MASA was acquired in
October 1998 and comprises
a key element in the growth of
Buses and the other business
areas in NAFTA (US, Canada
and Mexico).