Volvo’s Asia drive goes on despite exec retiring

Swedish truck maker Volvo  said on Tuesday Deputy Chief Executive Jorma Halonen, in charge of the company's expansion plans in Asia, would retire in 2008.

His departure comes with Volvo yet to wrap up talks with China's Dongfeng Motor Group Co over a cooperation deal, but the world's number two truck maker said it had the structure in place to continue its Asian expansion drive.

"Jorma has carried a heavy load and together with committed employees his accomplishments include the transaction with Nissan Diesel in Japan and ... most recently the agreement with Eicher in India," Volvo CEO Leif Johansson said in a statement.

"Certainly there is work remaining, which includes China, but we now have an organisation in place that can handle these issues."

Truck makers such as Volvo, Daimler and Nissan Motor Co are eyeing India and China, where rapid growth is boosting infrastructure spending and demand for heavy trucks.

Halonen will leave his post at on April 1 next year, Volvo said.

Earlier this month Volvo said it would invest $350 million to expand in the fast-growing Indian market through a joint venture with Eicher Motors. And in February Volvo bought the rest of Japan's Nissan Diesel that it did not already own for $1.1 billion.

Volvo wants to replace Nissan Motor Co as Dongfeng's partner in making heavy and medium-duty commercial vehicles and engines, though it has said a deal may take some time.

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