Samsung Commercial Vehicle Corporation Remains Unsold

Swedish carmaker Volvo and French carmaker Renault appear ready to end negotiations on the sale of Samsung Commercial Vehicle Corp.

According to sources from Volvo Truck Korea and related businesses, Renault has reportedly decided to give up its plan to advance into the Korean commercial vehicle market by selling its truck division. Meanwhile, Volvo, which had expressed interest in the company, is also likely to abandon plans to take over Samsung Commercial Vehicle.

An official from Volvo Truck Korea said, "In October of last year, Samsung Group Chairman Lee Kun-hee informally asked Volvo Chairman Lief Johansson, who was visiting Korea at the time, to buy Samsung Commercial Vehicle. However, after researching the company, Volvo decided not to buy." The official went on to add that, "Though Volvo admits Korea has a large potential market, it realizes that Samsung Vehicle's technology, marketing and production are not very helpful to Volvo at this stage."

Volvo sold its car division to U.S. automobile manufacturer Ford last year, and focused on its truck and bus divisions. When Volvo was offered Samsung Commercial Vehicle by Lee last October, it had already signed an equity investment with Mitsubishi.

A source from Samsung Motor Co. added, "As seen from Renault's selling its truck division to Volvo, Renault shows no interest in the commercial vehicle business. Also, following Renault's purchase of Samsung Motor Co., Renault will not have the ability to buy the commercial vehicle division of Samsung as well".

by Lee Yong-taek