ArvinMeritor/Volvo Trucks alliance
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VOLVO HAS MADE a strategic alliance with ArvinMeritor for the supply of all axles for Volvo Group trucks in Europe; this covers Renaults as well as Volvos.
ArvinMeritor will take over the former Renault Truck axle plant in St Priest and its foundry in Ve Nissueux.This follows the selloff of VolvoTruck's axle plant in Lindesberg. Sweden to ArvinMeritor back in 1998.
The axle plant in St Priest and its foundry in Ve Nissieux will be set up as two joint yen tures.ArvinMeritor will acquire the majority ownership of these operations, which are due to be operational by the end of this year.
-In 1998 Volvo outsourced driven axles and divested its axle operations in Lindesberg, Sweden, to ArvinMeritor," says LarsGiran Moberg, CEO and president of Volvo Powertrain. -The strategic affiance is a logical extension of a successful business model. It will free resources and result in substantial cost savings for the Volvo Group-.