March 27, 2000 8:45 AM, EST

A.M. Executive Briefing - Mar. 27

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This Morning's Headlines:

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Volvo and Fiat: Together at Last?

VW Finally Drives Into Heavy Trucks Sector by Buying Stake in Scania

N.Y. Yanks Suspect Truckers' Permits

Delphi Gets Navistar Contract

Volvo and Fiat: Together at Last?

Fiat Chairman Paolo Fresco's March 13 statement that his company is still interested in a purchase of Volvo turns up the heat on Volvo CEO Leif Johansson, whose global plans are in jeopardy now that the Scania deal has ended.

A Volvo takeover would help Fiat, whose offer for the Swedish truckmaker was spurned by Johansson last year, because Fiat's Iveco trucks do well in southern Europe but Volvo's are believed to be higher quality. Speculation is that Johnasson, aiming for more U.S. and European market share, may attempt to purchase MAN or Navistar.

Off the record, Volvo officials said a Renault partnership would be ideal, but acrimony was stirred up between the two companies when shareholders in Sweden turned down a Volvo-Renault alliance six years back. Business Week (03/27/00) No. 3674; P. 18; Tierney, Christine N.; Sains, Ariane

VW Finally Drives Into Heavy Trucks Sector by Buying Stake in Scania

Volkswagen has made its first foray into heavy trucks with a $1.57 billion deal to buy 18% of share capital and 34% of votes in the Swedish truckmaker Scania.

For a minimum of two years, chief shareholder Investor will keep 15.3% of votes and 9.1% of capital, while VW will not attempt to buy the remainder of Scania stock in the market. A stake in heavy trucks has long been an aim for the German company. Agence France Presse (03/27/00)

N.Y. Yanks Suspect Truckers' Permits

The number of states to revoke CDLs of truckers suspected of being licensed through bribery in Illinois rose to four as the New York Department of Motor Vehicles announced it is taking away the licenses of suspect drivers who did not schedule new examinations.

During the last two weeks, the state told 102 truckers to schedule retests by March 24; 73 did so, and the remaining 29 will lose their licenses immediately. Chicago Tribune (03/25/00) P. 5; Marx, Gary

Delphi Gets Navistar Contract

Delphi Automotive Systems, formerly a unit of General Motors, has won contracts to make instrument panels, steering wheels, doors, and seat belts for new International Truck and Engine Corp. medium-duty trucks.

Morgan Stanley Dean Witter managing director Stephen J. Girsky said Delphi's speed in getting deals with companies other than GM has exceeded analysts' expectations.

A 1998 deal to make medium-truck instrument panels was the first contract between Delphi and Navistar; a cab-door contract came in 1999, and Delphi also makes seat belts in Mexico under a long-term deal. The steering wheels and modular doors will be manufactured in Vandalia, Ohio. Dayton (Ohio) Daily News (03/25/00) P. 1E; Hulsey, Lynn