Management & Operations

Volvo Buys Scania as World Bus Industry Continues to Consolidate

Posted on August 6, 1999

The number of bus companies in the world continues to get smaller as Volvo has announced that it has acquired the other Swedish bus builder Scania. The merger will create the world’s second-largest manufacturer of trucks and buses after DaimlerChrysler. Volvo has been interested in Scania for years. However, that had been owned by Investor AB, the investment arm of Sweden’s powerful Wallenberg business family, had opposed the deal until now. Investor AB owns a 49% stake in Scania; it is this share that Volvo bought, which gives Volvo 69.6% of the votes in Scania. The deal cost Volvo $7.4 billion. The reason the Wallenbergs changed their mind is unclear, but some believe that they finally realized that Scania would be acquired sooner or later and that this would be the best deal they good get for Swedish workers at Scania. “The alternative would have been a foreign buyer and the rationalization that would have then taken place would have hit Sweden,” explained Volvo board chairman Lars Ramqvist. In 1998, Scania’s sales were $5.6 billion and Volvo’s sales were $10.2 billion. Meanwhile, DaimlerChrysler’s bus units, Mercedes-Benz, Freightliner, Sterling and Setra, increased its sales by 18 % to 270,500 units (which also includes trucks). Management was particularly impressed by the division’s performance in North America, and the contribution of the new Sterling and Thomas Built brands. By contrast, things do not look so good for Asian bus builders. The Japan Automobile Manufacturers’ Association reported that for the month of June, production of buses fell 2.5% to 4,331. Renault, which has invested heavily in Nissan this year, has also announced that it intends to re-enter the North American marketplace on its own, which appears to be a signal that its patience with its Japanese investment might be coming to an end.

View comments or post a comment on this story. (0 Comments)

More News

SacRT, TransLoc to expand microtransit pilot project

The agency implemented the first phase of SmaRT Ride in February and its resounding success was the catalyst for service expansion beginning sooner than anticipated on Monday, April 23.

Americans took 10.1 billion trips on public transportation in 2017

Compared to public transit ridership in 2016, there was a 2.9%  decrease in ridership as bus ridership declined by 4.3%.  

Peer review finds Chicago's transit system ranks high in coverage, efficiency

According to the report, CTA, Pace, and Metra ranked in the top half of their peer groups for 14 of the 16 measures reviewed and in the top three for seven of those measures.

Keolis to operate OCTA's on-demand microtransit pilot

The OC Flex will connect to the OC Bus network and Metrolink commuter rail stations. Passengers will have the ability to hail rides from their phones and track the status of their trips.

Sacramento RT looking to develop 'world class' transit system

The 'SacRT Forward' study will have variety of community involvement components, including two stakeholder meetings, SacRT Board workshops, and nearly a dozen community events where planners will solicit input from current riders and potential riders alike.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close