France refuses to let Volvo goTuesday, 03 January 2012
It has long been speculated that Renault will sell its Class A shares in listed Volvo. But if President Sarkozy and the French state have their say there will be no such business for a long time.
Latest report from Swedish business daily, Dagens Industri point that there is a French security policy which holds that a divorce between the companies will probably not happen for a the foreseeable future.
AdvertisementThe French state is a major shareholder in Volvo's subsidiary Renault Trucks and the company's military production is seen as strategically important.
Renault has a controlling stake of 17.1 percent in the votes in Volvo.
Almost all the armoured vehicles and military trucks, which the French army uses comes from Renault.
”It’s not only Renault's management that govern this issue, but President Nicolas Sarkozy also mixes in, "says a source Dagens Industri.
By Scancomark.se Team
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