Sweden’s Volvo Group has decided to keep its defence activities by discontinuing the process it had undertaken a year ago to sell its Governmental Sales business area which owns 100 % of France’s Renault Trucks Defense (RTD).
“Our Governmental Sales operation has a positive development and a strong order book. We have previously announced our intention to divest this business, but the offers we have received do not reflect its value. We have therefore decided to discontinue the divestment process”, Jan Gurander, Deputy CEO and CFO at Volvo Group announced today.
Volvo Group Governmental Sales (VGGS) is a division of Volvo specialised in the sale of armoured and tacticial military and security vehicles for States and government. About 50 % of its turnover comes from France which is also where the majority of its 1,300 or so employees work. The business has three branches : RTD, Acmat and Panhard which represent about 90 % of its activity. The remaining 10 % come from Mack Defense in the United States, Volvo Defence in Sweden and VGGS Oceania in Australia.
Here you can read the article we wrote when the divestment decision was announced last October.