GOTHENBURG - AB Volvo will form a new subsidiary to handle its operations in 11 Southeast and East Asian countries.
Bengt Ovlinger, currently president of Volvo Construction Equipment, has been named president of the new company, called Volvo East Asia. He will be based in Singapore.
Car and truck sales will account for about 70 percent of the new company's revenue. Volvo sold about 20,000 cars and 2,000 trucks in the region last year.
Operations in Japan, China and India are not affected by the restructuring.
AB Volvo Chief Executive Leif Johansson will be chairman of the Volvo East Asia board. Tuve Johannesson, president of Volvo Car Corp., and Karl-Erling Trogen, president of Volvo Truck Corp. will be members of the board.