Volvo CE partners with Bilia in Poland Nissan Diesel ends bus venture … Isuzu, Hino bus merger back on … Mahle to Australia - International Report - Brief Article

Diesel Progress North American Edition, Feb, 2002 by Mike Mercer

Volvo Construction Equipment (Volvo CE) has announced that Bilia, a distributor of Volvo Trucks in Poland, will take over the distribution of Volvo construction equipment in Poland from Volvo's own sales company, Volvo Poland Sp. Z.O.O. The transfer is to conclude by the end of the first quarter 2002 and at the same time the new organization will become a part of the Volvo CE European Region's responsibility. The move is part of Volvo CE's strategy to have fewer, larger, independent distributors able to provide complete sales and service support centers. Bilia is a distributor for Volvo CE in several other countries within Europe.

Nissan Diesel Motor Co Ltd. announced the end of cooperation with Fuji Heavy Industries Ltd. on bus platforms by the business year beginning in April 2003. The Japanese truck manufacturer is now producing bus platforms for Fuji Heavy and Nishi-Nippon Shatai Kogyo Co. to assemble bus bodies. Nissan Diesel, owned 22.5 percent each by Nissan Motor Co. Ltd. and Renault SA, said that from 2003/04 it would consolidate all bus assembly work at Nishi-Nippon Shatai Kogyo Co., a Fukuoka-based subsidiary of Nishi-Nippon Railroad Co. Ltd. Fuji Heavy, which broke away from an affiliation with Nissan when it came under the umbrella of GM, said its results would be unaffected by the move. Fuji Heavy, the maker of Subaru brand vehicles, also does bus assembly work for fellow GM affiliate Isuzu Motors Ltd.

In other Japanese bus market news, Isuzu Motors Ltd. and Hino Motors Ltd. have outlined plans to merge their bus-manufacturing operations by October 2003. Isuzu, owned 49 percent by General Motors Corp. and Hino, owned 36.6 percent by Toyota Motor Corp., said keeping separate operations alive would have been difficult. The tie-up will help cut development, procurement, and capital expenditure costs, while allowing them to strengthen product lines and increase sales. The companies agreed in 1999 to merge their bus-making businesses by 2003, but negotiations were called off in 2000 as the firms focused on their own restructuring efforts. Isuzu and Hino plan to set up a preparatory joint venture company in 2002 before merging their respective bus manufacturing units in October 2003.

Mahle Group announced the establishment of a joint venture in Australia with Automotive Components Limited (ACL) for the production of pistons and piston rings. The new company Mahle-ACL Piston Product Pty Ltd. will be 51 percent owned by Mahle. A new factory will be built near Melbourne and production is to begin in 2003. ACL's Piston Products Division is the only piston producer in Australia and supplies pistons and piston rings to GM, Ford, Toyota and Mitsubishi. A large portion of the production will be generated by piston and connecting rod modules for the new global GM V6Ecotec engine program.

In May 2001, Delphi Automotive Systems launched its common rail diesel system, the Delphi Multec DCR 1400, on a 1.5 dCi engine for the new Renault Clio automobile, signaling Delphi's push into the European diesel market. Recently Renault debuted its new Clio 1.5 dCi 80 hp equipped with Delphi's common rail diesel system.

Scania has signed a letter-of-intent to sell its bodybuilding facility in Silkeborg, Denmark, to the Norwegian company Vest-Buss AS. As a result, development and production of bodies for city buses will be concentrated at Scania's main bus building plant in Katrineholm, Sweden, and at its assembly units in Poland and Russia. In other Scania news, the company announced it will invest $1.3 million initially in a new distribution facility in Sacheon in southern South Korea. Scania is also studying the feasibility of developing Sacheon as a new hub for its expanding business in that country.

Haldex AB has announced the acquisition of the brake chamber and suspension valve businesses from Holland Neway International, Inc. The acquired operations, with manufacturing in Mexico and in the U.S., are now being integrated in the Haldex Brake Systems division. The acquisition further strengthens Haldex market position and adds yearly sales of approximately $50 million. The acquisition is estimated to add $2 to 3 million to the Haldex Group's 2002 earnings before tax.

INFORMATION FOR THIS REPORT IS TAKEN FROM INDUSTRY SOURCES AND DIESEL PROGRESS INTERNATIONAL EDITION. FOR UP-TO-THE-MINUTE INTERNATIONAL NEWS, AS WELL AS NEW PRODUCTS AND TECHNOLOGY VISIT THE SOURCE -- DIESEL PROGRESS ON-LINE.

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