Renault has sold its stake in Swedish truck manufacturer Volvo to invest in its core business and cut debt, giving the Swedish company greater freedom to tackle its own problems in Europe.

The French carmaker came close to an outright merger with Volvo in 1993 and had held a stake in the business since 2001, when it sold its trucks division to the Swedish company in return for shares.

Battling a decline that has sent sales near a 20-year low, European automakers have had to slash costs, cut jobs and close plants. Renault has said it is seeking union concessions in a nationwide labour deal.

The €1.48 billion proceeds of the sale of the Volvo stake will fund domestic and international investments, Renault said, and reduce automotive net debt, which stood at €818 million at June 30th. – (Reuters)