Volvo is planning on selling Volvo Aero, its aero-engine subsidiary, to focus on heavy trucks and construction equipment.
Volvo is the world’s second-largest maker of heavy trucks behind Daimler AG, and the company also sells industrial and marine engines as well as buses. The sell-off would be the biggest shift in direction for the Swedish manufacturer since the company split off its passenger car division a decade ago.
According to Volvo, divesting the business would help streamline the company although it is seeking a “reasonable price” for the asset.
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The company added it would only sell Volvo Aero to a “structure that would enhance the company’s opportunities for further development.”
Volvo Aero makes components that power aircraft engines including the double-deck Airbus A380 superjumbo, and the company said today its products are found in more than 90% of the world’s large civil aircraft.
