The agreement involves the assembly and sale of low cab-over-engine (LCOE) heavy-duty Class 8 trucks and unique aftermarket parts. As part of the deal, Volvo will license thetruck brand name to Autocar LLC, a newly formed subsidiary of Grand Vehicle Works Holdings, which will use it to market the LCOE products. The trucks included in the deal are the Xpeditor models WX and WXLL.
In addition to the license for the Autocar 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. This divestiture will not materially impact the volume or production capabilities of Volvo's New River Valley, VA truck assembly facility. According to the OEM, no layoffs will result directly from the closing of the transaction.