Photo: Renault Trucks
Renault has just announced that it has sold off its remaining shares in Volvo Trucks, in order to better fund their international and domestic investments, as well as reducing their debt, which stood at €818-million, on June 30th. For those who may not know, Renault Sold its Trucks division to Volvo AB, in 2001, yet it retained shares in the company.
Now, they have sold the remaining 6.5% share they still had in the company, for €1.48-million, or $1.93-million. Following the completion of the deal, Renault Trucks will become a fully-fledged division of Volvo Trucks, with no connection whatsoever with Renault.
According to an industry analyst, Sascha Gommel, “It’s really positive for them because they need the cash to invest in the automotive business and this clearly distinguishes them from PSA [ . . . ] This puts them in a situation to invest in new models, in new technologies, unlike PSA which is really short with regards to cash-flow.”
This all means that Renault will now concentrate and dedicate itself fully to the development of passenger cars, and with some extra cash in the piggy bank following the sale of their shares, they seem to be doing better than PSA, which has recently announced additional job cuts.
According to an industry analyst, Sascha Gommel, “It’s really positive for them because they need the cash to invest in the automotive business and this clearly distinguishes them from PSA [ . . . ] This puts them in a situation to invest in new models, in new technologies, unlike PSA which is really short with regards to cash-flow.”
This all means that Renault will now concentrate and dedicate itself fully to the development of passenger cars, and with some extra cash in the piggy bank following the sale of their shares, they seem to be doing better than PSA, which has recently announced additional job cuts.
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