Automotive Intelligence

News of  January 25, 1999

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VOLVO ACQUIRES 12.85 PERCENT OF SCANIA 
Volvo has acquired 13,613,148 A-shares and 12,089,330 B-shares, representing 13.47 percent of Scania’s voting interest and 12.85 percent of its capital interest as of January 15, 1999.

The commercial vehicles industry today is faced with unprecedented consolidation pressures. Volvo is already among the leading players in the world in this industry. To further strengthen this position and Volvo´s possibilities to compete globally, Volvo is committed to taking an active part in the consolidation process.

"Our analyses of different alternatives show that Scania is a very good alternative for Volvo", says Volvo’s chief executive officer, Leif Johansson. A combination of Volvo and Scania would create Europe’s largest and the world’s second largest manufacturer of heavy trucks and buses. A manufacturer with strong brands, significant development resources and large volumes, particularly in the critical diesel engine area. In addition, Scania and Volvo are similar in terms of company culture and business values. Volvo believes that these strengths would enhance the combined entity’s ability to compete globally and to create significant shareholder value.

Volvo Truck

Top of the line at Volvo

Scania´s Topline

The Topline at Scania

Mercedes-Benz to open a new sales center in Berlin, the Mercedes-Benz experience

Daimler Verkauf Berlin

(Jan. 7, 1999). The new subsidiary of Mercedes-Benz in Berlin, Germany, presents itself as car factory of the future.

The investment into the new subsidiary in Berlin will be about DM 75 mill. and represents a complete new sales concept. Buying a car should become a brand event and a shopping highlight. Grand opening will be  before year 2.000.

In the interior the modern architecture with its steel-glass-construction offers a 22 m high waterfall  flowing into an artificial lake, a free-climbing-wall with water curtain and  huge video projections. On the screen promotion videos will be shown. And beside an  info center and the sales area, a small bistro, a small market store with food and flowers is planned. The 14.000 qm big showroom which goes over 4 levels is connected with glass elevators, ramps and escalators. Main target of Mercedes-Benz is to animate younger and new customers to visit the new communication center Mercedes-Benz.

Continued Negotiations Between DaimlerChrysler and Nissan Motor


Stuttgart/Tokyo -- DaimlerChrysler and Nissan confirmed that the President of Nissan Motor, Yoshikazu Hanawa, and the Chairmen of DaimlerChrysler, Robert J. Eaton and Juergen E. Schrempp, have met in Tokyo on January 21, 1999. They had constructive discussions regarding Nissan Diesel and also explored possible cooperation projects with Nissan
Motor. The companies will continue the discussions on these topics, but have not made any decision yet.

Visteon 1998 earnings increase 37 percent to record $712
million


DEARBORN, Michigan, January 21, 1999 – Visteon Automotive Systems is
reporting a second straight year of strong financial performance as net
income was $712 million, up 37 percent from 1997. Revenue for the year was
$17.8 billion, up 3 percent from 1997, with after-tax return on sales of 4.0
percent, up a point.

HANDAR4.GIF (182 Byte)    Ford to acquire engineering company with aluminum stamping expertise
DETROIT, Mich., Jan. 19, 1999 - Stressing its commitment to environmental technology leadership, Ford Motor Company plans to acquire an engineering company with unique experience in aluminum stamping.

Ford has signed a letter of intent to acquire 100 percent ownership of Troy Design and Manufacturing (TDM), based in Redford, Mich. TDM has extensive experience designing dies and other manufacturing tooling, and has particular expertise, developed over twenty years of cooperation with Ford Motor Company, in designing dies to stamp aluminum.

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