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Volvo moves ahead with Mack merger

January 04, 2001

Volvo moves ahead with Mack merger



Volvo took the first steps toward its purchase of Mack Trucks Inc. on Tuesday, company officials said.

Volvo transferred 44 million shares of its stock to Renault V.I. and its wholly owned subsidiary of Mack Trucks. In exchange, Renault will give all of its stock to Volvo.

The arrangement has been approved by the European Union and the U.S. Department of Justice.

Mack's engine manufacturing plant in Hagerstown could receive more work as a result of the acquisition, although details are still forthcoming.

Earlier this year, Volvo President and Chief Executive Officer Leif Johansson said the Swedish company planned to build more engines in the United States after the purchase.

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Volvo doesn't have an engine plant in the United States, so it is logical to assume the company will look to the Hagerstown engine plant as the most efficient way to expand, Volvo officials have said.

More work would be welcome news for the Hagerstown plant's 1,338 employees, who endured a layoff in August and a one-week plant shutdown in October due to an industry-wide decline in truck orders.

Another temporary layoff is scheduled for Jan. 22 through Feb. 1, said Mack spokesman John Mies.

- Staff writer Laura Ernde

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