Volvo sells Mack to Oshkosh, retreats from U.S. market

[kscarbel]

Greensboro, April 2 (Reuters) – Volvo announced today that it has signed a memorandum of understanding with Oshkosh Corporation resulting in the sale of Mack Trucks to the Wisconsin-based specialty truckmaker.

While terms of the sale are being withheld, Oshkosh Chief Executive Officer Charles Szews said the agreement includes the sale of Volvo’s Macungie, Pennsylvania and Hagerstown, Maryland assembly plants as well as Volvo’s U.S. parts distribution centers.

“Today is a great day for Oshkosh and America. It’s my pleasure to bring an iconic American brand come home. The addition of Mack will serve to further diversify Oshkosh, enhancing the company’s vocational products while immediately fast tracking us into the on-highway truck segment for the first time in a very big way,” said Szews.

Volvo Group President and CEO Olof Persson said in a prepared statement that “while we have learned much from our time in the U.S. market, Volvo has however not been able to realize the synergies we originally forecasted when purchasing Mack. In addition, Volvo brand truck sales in the U.S. have continued to underperform our expectations. We have therefore decided to alter our global strategy and focus our efforts on other global regions with greater emphasis on emerging markets.”

Oshkosh Corporation (NYSE: OSK) is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh^®, JLG^®, Pierce^®, McNeilus^®, Jerr-Dan^®, Frontline^™, CON-E-CO^®, London^® and IMT^®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount.

The Volvo Group, which employs about 115,000 people, has production facilities in 19 countries and sells its products in more than 190 markets. In 2012, the Volvo Group’s sales amounted to $45 billion. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm and are traded OTC in the U.S.

[David]

Too good to be true?

http://www.volvotrucks.com/trucks/global/en-gb/newsmedia/pressreleases/Pages/search.aspx

http://investor.oshkoshcorporation.com/phoenix.zhtml?c=93403&p=irol-news2&nyo=0

[farmer52]

If this is true, Volvo sure screwed Mack by moving them out of their WHQ in Allentown and the test center?

Nothing on the internet so far this morning. I am going to raise the BS flag until I see more proof.

[220cummins]

Too good to be true?

http://www.volvotrucks.com/trucks/global/en-gb/newsmedia/pressreleases/Pages/search.aspx

http://investor.oshkoshcorporation.com/phoenix.zhtml?c=93403&p=irol-news2&nyo=0

HAHAHA IT'S APRIL FIRST!

[1958 F.W.D.]

It's April 1st you knuckleheads..........How could Oshkosh buy Mack when Oshkosh is in worse financial condition than Mack ever was?????

[farmer52]

It's April 1st you knuckleheads..........How could Oshkosh buy Mack when Oshkosh is in worse financial condition than Mack ever was?????

Not a funny April fools joke!

[james j neiweem]

Seems that by looking at the internet news Oskosh and Volvo hav'nt heard about this yet. But I did see

a new 2013 Mack B-75 on the way to work.

[Vladislav]

The 1st of April will ends up in 1 hour here and sad thoughts about Mack and Volvo cooperation will back.

Although nice jokes should be happy

[mike69mackman]

NOT A FUNNY JOKE AT ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[tkobes43]

LOL! Tried to pull a fast one!

Tom

[57 bcr]

Nice try! If the government ever stops awarding defense contracts to Oshkosh,they will fold faster than you can say B'Gosh!! I hate to say it,but Volvo may not be the worst hands Mack could be in.

[kscarbel]

Nice try! If the government ever stops awarding defense contracts to Oshkosh,they will fold faster than you can say B'Gosh!! I hate to say it,but Volvo may not be the worst hands Mack could be in.

Yeah, it would be a real tragedy for the Mack brand to be American-owned once again.

[57 bcr]

Yeah, it would be a real tragedy for the Mack brand to be American-owned once again.

Do you even know the financial condition of Oshkosh Trucks? If MACK was to become American owned again (by Oshkosh), it would only be long enough to put it back up for sale to yet another foreign entity. When Oshkosh bought out JLG,they inherited a massive debt.If they hadn't had the military contracts,Oskosh would cease to exist.I doubt Oshkosh would have had the $9 million to even invest in the Customer Center at Allentown,also.Just sayin'!

[kscarbel]

Do you even know the financial condition of Oshkosh Trucks? If MACK was to become American owned again (by Oshkosh), it would only be long enough to put it back up for sale to yet another foreign entity. When Oshkosh bought out JLG,they inherited a massive debt.If they hadn't had the military contracts,Oskosh would cease to exist.I doubt Oshkosh would have had the $9 million to even invest in the Customer Center at Allentown,also.Just sayin'!

I hear your thoughts. Actually I'm an Oshkosh stockholder and do know their financial condition. It's quite solid. Yes, the military truck business is one of their most profitable units, and no doubt a cyclical (i.e. risky) business. But there's a demand for it and Oshkosh has made a tremendous amount of money in that segment. And, the military is extremely pleased with Oshkosh. So where's the problem with being big in that segment?

In addition to the military truck segment, Oshkosh does well with McNeilus, London, IMT, Jerr-Dan and particularly Pierce (who offers the most technologically advanced fire apparatus in the business).

As someone that was a JLG stockholder, I recall the better days of a larger and independent JLG. But as someone who's also an Oshkosh stockholder, I'm glad that they bought JLG.

Financially speaking, Oshkosh is entirely capable of purchasing and doing great things with the Mack brand.

[1958 F.W.D.]

and particularly Pierce (who offers the most technologically advanced fire apparatus in the business).

Too bad Pierces are tubs of shit................

[REOGasMackDiesel]

Oshkosh today is doing rather well, They have so many subsidiary's, I don't think owning Mack would bother them in least actually lots of Oshkosh's here in WI and Mack's too.

Given the date 4/1 this all just a joke ;o)

Mike

[mackniac]

Oshkosh would be a good contender in the oilfield & gasfield industries .

[MackMann85]

Didnt oshkosh just lay off close to 1000 people?

[kscarbel]

Didnt oshkosh just lay off close to 1000 people?

Altogether, Oshkosh has over 10 business units. One unit, Oshkosh Defense, plans to lay off 900 people in anticipation of a decline in military vehicle orders (see news article below). As the demand for military vehicles has forever inherently been a cyclical business, this is all quite normal. Most importantly, this business unit is extremely profitable. Note that the unit will still have 2,800 employees.

Note that the unit's 1st qtr earnings rose 20% despite weaker sales, which demonstrates the same prudent management as seen at Paccar

_____________________________________________________

Oshkosh to Cut 900 Jobs in Defense Division

WSJ / April 9, 2013

Oshkosh Corp. said Tuesday it plans to cut 900 positions in its defense division this summer on expectations domestic demand for its military vehicles will decline significantly as the year progresses.

The specialty-truck maker said its defense-division workforce would shrink by about 700 hourly and 200 salaried positions through July. After these layoffs, Oshkosh will have about 2,800 defense employees.

The Wisconsin-based company expects daily production volumes to decline by about 30% this summer. The company tied the decline to the reduction in government defense budgets and a return to peacetime spending levels as the U.S. winds down war activities.

"These were difficult, but necessary decisions," said John Urias, Oshkosh's president of defense, adding that the company tried to cushion the blow by bringing back in some work that had been outsourced.

Oshkosh has registered growth in its nondefense segments, aided by a nascent recovery in the housing market. In January, the company reported its fiscal-first-quarter earnings jumped 20% despite weak defense results.