/ Industry, News, Renault, Volvo / With Renault Out, Volvo Has More Freedom to Restructure

With Renault Out, Volvo Has More Freedom to Restructure

Linked In Share
With Renault Out, Volvo Has More Freedom to Restructure

As Renault sod its stake in Volvo, it offered the Swedish automaker more freedom to solve its problems in Europe.

In 1993 Renault came close to an outright merger with Volvo, holding a stake in the business since 2001, when the French company sold its trucks division to the Swedish truck maker in exchange for shares. But as the European market is on its way to reach a 20-year low, Renault was forced to sell these shares to avoid cutting jobs and closing plants. The 1.48 billion euro ($1.93 billion) from this sale will be used to fund its domestic and international investments, but also to cut its automotive net debt which reached 818 million euro by June 30th.

Renault’s selling of shares left Swedish investment group Industrivarden the major shareholder in Volvo, as the company also bought 10 million of the shares sold by the French company. Now Industrivarden holds 18.7% stake in Volvo. Renault’s giving up its stake in the Swedish automaker also means that the French government has less power in interfering with Volvo’s efforts to deal with the deep slump in Europe, which is its biggest market.

“Given Volvo’s leadership position and proven ability, combined with increasing global transportation needs and growing environmental concerns, we see good potential for value creation in our investment,” Industrivarden President Anders Nyren said.

by Ana Cezara Savin (my Google+) - Friday, December 14th, 2012 - filed under Industry, News, Renault, Volvo. Image credit: .
Linked In Share
Related Articles
europe Renault restructure stake Volvo


Discuss: With Renault Out, Volvo Has More Freedom to Restructure

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Porsche sells more than 600 units of the 918 Spyder
Porsche sells more than 600 units of the 918 SpyderThe German based automaker Porsche has managed to sell no less than 600 units of the 918 Spyder. With its main rivals Ferrari ...
Ferrari unveils F12 Berlinetta Polo and FF Dressage Editions
Ferrari unveils F12 Berlinetta Polo and FF Dressage EditionsFerrari has introduced two special editions of the F12 Berlinetta and the FF, called the Polo and the Dressage Editions. The ...
Bentley SUV spied in production guise
Bentley SUV spied in production guiseOur spy photographers have managed to capture the production version of the Bentley SUV once again. Bentley is continuing the ...
Ford Ranger facelift caught on the open road
Ford Ranger facelift caught on the open roadThe facelifted version of the Ford Ranger has been recently spotted while being tested out on the open road, wearing some ...
Recall roundup: Kia Cadenza for wheel problem
Recall roundup: Kia Cadenza for wheel problemThe South Korean based automaker Kia has recently issued a recall for several Cadenza vehicles, because of a problem with their ...
[VIDEO] Lamborghini Aventador crashed in Vancouver
[VIDEO] Lamborghini Aventador crashed in VancouverA bright yellow example of the Lamborghini Aventador has been recently crashed in Vancouver, Canada. Supercars keep getting ...
Volkswagen Beetle GRC with 544 HP unveiled
Volkswagen Beetle GRC with 544 HP unveiledVolkswagen has officially pulled the wraps off its latest creation, the so-called Beetle GRC, ahead of its public debut which ...
Red Bull planning ‘Infiniti’ F1 engine – report
Red Bull planning ‘Infiniti’ F1 engine – reportJun.20 (GMM/Inautonews.com) Plans are afoot for an 'Infiniti' engine in formula one. It is already known that reigning world ...
F1 to adopt standing re-starts in 2015
F1 to adopt standing re-starts in 2015Jun.20 (GMM/Inautonews.com) Hot on the heels of exhaust trumpets and titanium sparks, the latest radical F1 innovation has now ...
2015 Mercedes-Benz CLS gets priced in the UK
2015 Mercedes-Benz CLS gets priced in the UKMercedes-Benz has recently announced the official price list for the facelifted version of the CLS in the United ...
Paris Hilton buys McLaren 650S Spider
Paris Hilton buys McLaren 650S SpiderParis Hilton has added a new ride to her collection, a McLaren 650S Spider, which is definitely one hot supercar. Paris Hilton ...
DD Customs modifies the Mercedes-Benz SLS AMG
DD Customs modifies the Mercedes-Benz SLS AMGA new styling program aimed towards the Mercedes-Benz SLS AMG has been recently introduced by the tuning company called DD ...
Chumlee scratches rented Ferrari 458 in Miami
Chumlee scratches rented Ferrari 458 in MiamiPawn Stars’ Chumlee has managed to scratch an expensive rental, a Ferrari 458 Italia, while he was in Miami. Chumlee is ...
New track focused McLaren model teased
New track focused McLaren model teasedMcLaren has released a new teaser image with a track focused supercar which will be officially presented to the public during the ...
Range Rover Sport gets tuned by Overfinch
Range Rover Sport gets tuned by OverfinchThe aftermarket specialists at Overfinch have officially introduced their new tuning program for the Range Rover Sport. A new ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Ferrari F12 Berlinetta Polo 1
Spy-Shots of Cars
Spy-Shots of Cars
Volkswagen Beetle GRC with 544 HP unveiled 1
paris hilton mclaren 650s spider 1
DD Customs modifies the Mercedes-Benz SLS AMG 1
Range Rover Sport gets tuned by Overfinch 1
opel meriva 1.6 cdti 1
daihatsu copen 1
2015 Hyundai Sonata Eco 1
0-Mercedes-Benz CLA 200 CDI Exterior Review 02
0-BMW 320d xDrive Exterior Review 02

More automotive from inautonews
The German based automaker Porsche has managed to sell no less than 600 units of the 918 Spyder. With its main rivals Ferrari and McLaren producing just 500 units of the LaFerrari and 375 units of the P1, Porsche has taken a step forward and sold no less than 600 examples of its 918 Spyder. The ...
read more
Inautonews Editors Section
Car investment – which are the next classics?
Car investment – which are the next classics?Some prefer the stock exchange, others buy gold and some invest in properties, but there is a small group of people who prefer to try their luck with ...
Where brand new cars go to die
Where brand new cars go to dieHundreds of millions of brand new cars are left to rust in huge parking lots all over the globe after no one wants to buy them. The 2014 world ...
Trendy cars for this summer
Trendy cars for this summerSummer is just around the corner and the inautonews.com team is presenting you with some of the hottest convertibles money can buy these ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Kia Cadenza for wheel problemThe South Korean based automaker Kia has recently issued a recall for several Cadenza vehicles, ... US: a quarter of recalled cars don’t get fixedAlthough noticed by automakers, around 25% of recalled cars don’t get their fix every year, which ...
Safety Section