KMW-Nexter Buying Volvo’s Governmental Sales Unit?
Published On Nov 21, 2016
As per rumours, KMW-Nexter is planning to buy the Governmental Sales unit of Sweden based commercial vehicle maker Volvo. KMW-Nexter is a Europe-based vehicle manufacturer and specialises in crafting armoured vehicles.
It is believed that KMW-Nexter is eyeing the military trucks market through the takeover. This group, KMW-Nexter was created only last year from the merger of Kraus-Maffei Wegmann and French state-owned group Nexter Systems.
Volvo had cleared its intentions of selling the unit last month itself. It is reported that the Governmental Sales unit of the Swedish truck maker had only contributed 1.5 percent of the total revenue generated by Volvo in 2015.
Volvo’s Governmental Sales unit comprises of approximately 1300 people and is mainly responsible for designing specialised vehicles for various Governments and Defence forces.
Volvo is famous for the quality of trucks and buses it manufactures and sells in the world. Many countries use Volvo commercial vehicles as a part of their cargo and passenger transportation fleets. But with CV makers like Scania joining the global sales figures, the recent times have not been that good for Volvo. Also, many state governments in India have also started relying on luxury buses offered by CV manufacturers other than Volvo.
KMW-Nexter has not clarified any such development, nor has Volvo given a confirmation on its talks with staff representative bodies.
KMW-Nexter interest in buying Volvo’s Governmental Sales Unit may or may not prove to be true news. But the news has definitely cemented Volvo’s idea of selling its Governmental Sales unit.