Volvo Construction Equipment and Komatsu Ltd have initiated discussions regarding future cooperation in the production and development of construction equipment components. Tangible outcomes from the discussions are expected by mid-year 2002.
The intention is to determine whether both companies can find ways to strengthen their cost competitiveness and to increase customer satisfaction.
"We believe this cooperation could lead us to find high quality and cost effective solutions," said Masahiro Sakane, president of Komatsu, and Tony Helsham, president & CEO of Volvo Construction Equipment, in a common statement to the announcement.
In the discussions, Volvo Construction Equipment and Komatsu will not include sales, service, distribution and equity participation.
Both companies will continue to engage in business as independent competitors using their own dealer networks, brands and identities.
