Volvo to keep Nissan Diesel's name

AB Volvo reiterated that it has no plan to change the corporate name of Nissan Diesel Motor Co even after the Japanese truck maker becomes its subsidiary.

"I don't see any reason why we should change that," Leif Johansson, chief executive officer of the Volvo group, said in Tokyo, noting that the Swedish company has a positive experience of benefiting from keeping the brand names of its group companies Mack and Renault in the US and European markets.

"Nissan Diesel is such a big brand in Japan," Johansson said during a meeting with reporters.

"It's important to use the assets in most economic and effective ways."

Last week, Volvo said Nissan Diesel will become its subsidiary on Thursday as its tender offer, held between February 21 and last Friday, managed to secure a 96 per cent stake in the Japanese manufacturer.

Prior to the start of the takeover bid, Volvo, second only to DaimlerChrysler AG in the world's truck industry, owned 19 per cent of Nissan Diesel. The Japanese maker's capital alliance with Nissan Motor Co completely dissolved last year.

Volvo has said the acquisition of Nissan Diesel is aimed at strengthening its eco-friendly technology and operations in fast-growing Asian countries.

Volvo and Nissan Diesel predict achieving synergy worth about 200 million euros ($A331.5 million) annually in the next five years, such as through joint procurement of auto parts and sharing of sales networks.

?© 2007 AAP

Source: [url=http://www.smh.com.au/news/Business/Volvo-to-keep-Nissan-Diesels-name/2007/03/28/1174761544129.html]Sydney Morning Herald[/url]