Driven by upcoming new stricter emmissions laws in Europe and the US, Volvo is to buy a further stake in Nissan Diesel, as the two firms look to achieve synergies in the diesel truck manufacturing industry.

The Swedish automotive firm is to acquire 13 per cent out of parent firm Nissan's 19 per cent stake in the operation.

Nissan president Carlos Ghosn hailed the move, which had an immediate and positive effect on the operation's share price.

"Nissan Diesel has seen a turnaround in its business performance during the last four years," he said.

"We are confident that Volvo is the right partner at the right time for Nissan Diesel, and will help them build a profitable long-term business," he added.

The move will also provide Volvo with first rights on the acquisition of Nissan's remaining six per cent holding in the diesel firm, with the deal heralding a series of tie-ups and crossovers between the two manufacturers.

Together with Chinese partner Dongfeng Motor, Nissan Motor says it will be reviewing areas for cooperation with Volvo as they target sales increases in the rapidly expanding market.


Ÿ Adfero Ltd