Swedish truck maker AB Volvo is considering taking full control of the bus and truck division of Mitsubishi Motors Corp., the Financial Times reported Tuesday.
The move is intended to help fend off the threat to Volvo's Asian strategy posed by DaimlerChrysler AG's deepening relationship with MMC, the British paper said.
Volvo, which owns 5 percent of MMC, has agreed to take a 19.9 percent stake in Mitsubishi Fuso Truck & Bus Co. in July. Mitsubishi will spin off its truck and bus division into the new company in April.
DaimlerChrysler, a fierce rival to Volvo in the truck market, took a 34 percent stake in the Japanese carmaker in October.
Although the collaboration between DaimlerChrysler and MMC is centered on cars, Volvo believes the linkup could affect its relationship with Mitsubishi in trucks and buses, the Financial Times said.
The paper also said Volvo is considering whether to attempt to buy the remaining stake in Mitsubishi Fuso Truck & Bus alongside a move to split the division from MMC.
However, analysts believe DaimlerChrysler will use its influence to resist Volvo's plans, which would force the Swedish group to collaborate with one of Japan's other truck manufacturers in order to pursue its strategy of Asian expansion, the newspaper said.
On Monday, the Wall Street Journal reported that Volvo is having trouble sharing ownership of MMC with DaimlerChrysler and is having second thoughts about its holding in Mitsubishi.
The paper quoted Volvo officials as saying the firm would have little interest in maintaining the stake in MMC if DaimlerChrysler should increase its stake in Mitsubishi to hold a majority position.