In a news release, the spokesperson on behalf of Renault, French auto-maker has told reporters that the company has decided to sell the Volvo stocks to raise fund. A large portion of shares of Renault has been handed over to Volvo in exchange of 29.4 billion Swedish kronor. French automaker has had to sell major portion of stocks due to financial constraints.

Volvo is a well known Swedish truck manufacturing unit.

Renault has taken drastic steps to sell the holdings to get fund. These accumulated proceeds will be utilized to bring the amount of debt far below three billion euros.

However it is not a commercial stunt to Renault as it has already made proclamation that the company has no strategic plan to keep stocks in safety in Volvo. Therefore, the company is not officially bound to store the stocks in the treasury of Volvo.

3.1 billion euros have been collected so far after selling the B-class stocks in Volvo. However, Renault didn’t touch their A-class shares. Only B-shares have been sold to Volvo. Renault has still 6.8 percent A-class shares which basically cover 17.5 percent to cast votes in Volvo electoral process.