October 23, 2009 11:30 AM, EDT

Mack, Volvo Trucks to Merge

Bruce Harmon/Trans Pixs

Mack Trucks and Volvo Trucks North America will merge next month into a single corporate entity, the (Allentown, Pa.) Morning Call reported.

Mack spokesman John Mies said the change is only an organizational change within Volvo AB, and that it will not affect either brand, the paper said.

Mack and Volvo will keep separate sales organizations and vehicle lines, the newspaper reported.

The move comes as Volvo tries to increase efficiency and profitability within Mack and Volvo Trucks.

The new entity will be called North American Trucks, the Morning Call said.

Dennis Slagle, chief executive officer of Mack, will lead the new company. Per Carlsson, president of VTNA, will be chief operating officer.