In the latest realignment in the global automotive industry, Mitsubishi Motors Corp. and AB Volvo of Sweden will form a strategic alliance in the field of trucks and buses that includes a capital tieup, top officials of the two firms announced Friday.
The two firms reached a basic agreement to take a 5 percent stake in each other's firm as a way to reinforce their partnership in developing, producing and marketing trucks and buses worldwide. MMC and Volvo have previously been involved in business tieups in the fields of passenger and commercial vehicles.
"We will mutually own shares to further strengthen our business partnership," MMC President Katsuhiko Kawasoe said. "With the tieup with Volvo, we will create the world's largest maker in the truck segment."