Volvo Trucks North America, Inc. has reached an agreement to sell its Xpeditor truck product line to Grand Vehicle Works Holdings, LLC. The agreement involves the assembly and sale of low cab-over-engine (LCOE) heavy Class 8 trucks and aftermarket parts. As part of the deal, Volvo will license the Autocar truck brand name to Autocar, LLC, a newly formed subsidiary of Grand Vehicle Works Holdings, which will use it to market the LCOE products.
Grand Vehicle Works Holdings' portfolio Workhorse Custom Chassis and Union City Body Company. Grand Vehicle Works Holdings' headquarters are in Highland Park, Illinois, and its manufacturing facilities are in Union City, Indiana.
Volvo is selling its Xpeditor business to comply with an agreement Volvo entered into with the U.S. Department of Justice (DOJ) to obtain antitrust clearance of AB Volvo's acquisition of Renault and Mack Trucks in December 2000. The trucks included in the deal are the Xpeditor models WX and WXLL.
In addition to the license for the Autocar truck brand name, the terms of the agreement include model-specific designs, tooling and other assets, including component tooling located at supplier facilities. Upon completion of the sales transaction, there will be an up to 24-month transition period during which Volvo will continue to assemble LCOEs for Grand Vehicle Works Holdings on a contract basis.
The Class 8 LCOE segment represents less than 3% of the total heavy truck market in North America, and 8% of Volvo Trucks North America's sales. No layoffs will result directly from the closing of the transaction.