Volvo-Scania Is Global Deal

The merger of Sweden’s Volvo and Scania could be the catalyst for new consolidations among truck-makers – in the United States as well as abroad – some analysts believe.

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In Stockholm, the business daily Dagens Industri theorized that, having had its way with Scania, Volvo might now try to consummate its long-rumored interest in Navistar International.

Also, Tobias Lefkovich, an analyst with Smith Barney in New York, predicted other manufacturers would now feel more pressure to consolidate.

The chief executive officer of Volvo Trucks North America, Marc Gustafson, agreed.

“The relevance of this deal is that the truck manufacturing industry is going global – fast,” he said.

“There are going to be fewer, and larger, customers,” and that is going to put pressure on manufacturers to improve their cost structures, Gustafson said.

For the full story, see the August 16 print edition of Transport Topics. Subscribe today.