Volvo 2001 Annual Report Download - page 65

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Acrivia AB (former OmniNova Technology AB)
In April 2001, Volvo Buses acquired 65% of Acrivia AB,
an engineering company that develops production
processes for buses and produce frames for the new TX
platform, from TWR Sweden AB. Thereafter, Volvo Buses
owns 100% of Acrivia AB.
Low Cab-Over-Engine (LCOE)
On July 27, 2001 Volvo Trucks North America agreed to
sell its LCOE business to Grand Vehicle Works Holdings,
LLC. By divesting its LCOE operations, Volvo met the
condition imposed by U.S. Department of Justice for
approval of its acquisition of Mack and Renault V.I.
Volvia
On February 8, 2001, Volvo’s wholly owned subsidiary,
Volvia reached an agreement covering the divestment of
its insurance operations. The buyer is the If insurance
company. The purchase price for the operations was
562.
Renault V.I. and Mack
On January 2, 2001, AB Volvo’s acquisition of Renault’s
truck operations, Mack and Renault V.I., became effec-
tive. Under the terms of acquisition AB Volvo acquired all
the shares of Mack and Renault V.I. in exchange for 15%
of the shares in AB Volvo. The purchase price for the
shares was set at SEK 10.7 billion, based on the Volvo
share price on the acquisition date. Goodwill amounting
to SEK 8.4 billion that arose in connection with the
acquisition is being amortized over 20 years. In connec-
tion with the acquisition, Renault V.I. Finance was
acquired for about FRF 154 M.
Eddo Restauranger AB
In December 2000, AB Volvo and Volvo Car Corporation
divested in total 51% of the Eddo Restauranger restau-
rant chain to Amica AB, a company within the Fazer
Group. Eddo was 55% owned by AB Volvo and 45% by
Volvo Car Corporation. Amica AB acquired the shares in
proportion to earlier holdings by AB Volvo and Volvo Car
Corporation. The remaining holdings in Eddo by AB
Volvo is 30%. Amica has an option to acquire and AB
Volvo has an option to sell the remaining shares. The
options expire in 2002.
Duffields of East Anglia Ltd
In July 2000, Volvo Trucks acquired Duffields of East
Anglia Ltd, a company that has been a Volvo dealer
since 1969. Duffields is represented in the east of
England where they operate from ten own dealerships,
manage two customer workshops and are responsible
for a small independent dealer.
Volvo (Southern Africa) (Pty) Ltd
In February 2000, the new wholly-owned company Volvo
(Southern Africa) (Pty) Ltd acquired the assets of the
former distributor in South Africa for approximately USD
10 million, including dealerships in South Africa and an
assembly plant for trucks and bus chassis in Botswana.
The company will run operations within the truck, bus,
construction equipment and marine and industrial
engines sectors.
Truck Engine Parts Division
In February 2000, Volvo Aero’s Truck Engine Parts
Division (TEPD) was taken over by the Finnveden engi-
neering group. TEPD produces components for trucks.
Volvo Maquinaria de Construccion Espana SA
As part of the strategy to mainly organize sales through
independent dealers, Volvo Construction Equipment
divested its market company in Spain in the second
quarter of 1999. The buyer was Auto Sueco Lda, which
previously was Volvo’s partner in Portugal for more than
50 years. The gain on the sale amounted to SEK 0.2 billion.
Pro-Pav and Superpac
In April 1999, Volvo Construction Equipment reached an
agreement covering the sale of its operations under the
trademarks Pro-Pav and Superpac. The operations were
previously conducted within the Canadian subsidiary
Champion Road Machinery.
Mecalac
In March 1999, Volvo Construction Equipment divested
65% of its operations involving compact machinery
under the Mecalac brand name. Concurrently, the inten-
tion to divest the remaining 35% interest within three
years was announced.
Jet Support Corporation
As a result of the agreement between Volvo Aero and
Boeing that grants Volvo Aero exclusive rights to market
and to sell surplus spare parts to the fleet of Boeing air-
craft on the world market, the operations of American
Jet Support Corporation were acquired in April 1999.
Volvo Aero Norge AS
(formerly Norsk Jetmotor AS)
During 1999, Volvo Aero acquired 78% of the shares in
Norsk Jetmotor AS in two stages for NOK 240 M. In
conjunction with the acquisition, the name of the compa-
ny, which is mainly involved in production of commercial
aircraft components, was changed to Volvo Aero Norge
AS. Goodwill of SEK 0.1 billion that arose in conjunction
with the acquisition is being amortized over 20 years.
Volvo Malaysia Sdn Bhd
In the beginning of 1999, Federal Auto Industrial Sdn
Bhd was acquired. The company, whose name was
changed later in the year to Volvo Malaysia Sdn Bhd,
conducts importer and dealer operations in Malaysia for
trucks and buses as well as marine and industrial
engines.
Volvo Cars
In January 1999, AB Volvo reached an agreement with
Ford Motor Company covering the sale of Volvo Cars.
Following approval by a General Meeting of Volvo share-
holders on March 8, and by the relevant competition
authorities, AB Volvo completed the sale of Volvo Cars to
Ford Motor Company on March 31, 1999. Under terms
of the agreement, Ford has the right to Volvo Cars’ earn-
ings beginning on January 1, 1999. In addition to a divi-
dend of SEK 17.7 billion from Volvo Personvagnar
Holding AB, AB Volvo received SEK 10.3 billion for the
shares, plus USD 2.3 billion, of which USD 1.6 billion was
paid on March 31, 2001. In connection with the sale,
Ford assumed financial net debt of SEK 4.8 billion. The
gain from the sale amounted to SEK 26.7 billion. In con-
junction with the sale of Volvo Cars, the Volvo trademark
was transferred to a newly formed company named
Volvo Trademark Holding AB which is owned jointly by
AB Volvo and Volvo Car Corporation. The right to use the
trademark is thereby governed by a license agreement
between Volvo Trademark Holding AB and AB Volvo as
well as Volvo Car Corporation.