As we suggested on 28 October, Renault Trucks Defense (RTD) is indeed for sale, Joakim Kenndal, acting head of media relations at the Volvo Group, confirmed this morning following a press release in which the Group announced its intention to divest its Governmental Sales business area.
RTD is currently 100% owned by Volvo Group Governmental Sales (VGGS), a division that manufactures and sells armoured and other specially designed vehicles to governments, the defence industry, peacekeeping forces and aid organisations.
Jan Gurander, Deputy CEO and Chief Financial Officer at Volvo Group, explained that “Governmental Sales has built a very strong position over the last few years with a positive development and a record order book. There are great opportunities to grow the business even further, however, we believe that a new owner may be better placed to take the business to the next level. Consequently, we intend to start preparations to divest the business.”
VGGS’ sales correspond to approximately 1.5% of total sales of the Volvo Group. The business has about 1,300 employees most of who are in France.
Kenndal told FOB that this morning a consultation process was being launched with the unions “which could take a certain amount of time.” He stressed that it was too early to say who might be interested in buying the business but confirmed that “no contacts at all have been made with potential buyers” and that even if the French state held no shares at all in RTD “the process will probably involve the French authorities.”
He could not say what the overall divestment timeframe was, simply saying it would be “a long process for sure.”