Nissan chief Carlos Ghosn (left) and Volvo president Leif Johansson (right) in Tokyo on Tuesday. (AFP)

Tokyo, March 21 (AFP): Nissan Motor today said it will sell 13 per cent out of its 19 per cent shareholdings in Nissan Diesel Motor to Sweden’s Volvo for 1.5 billion krona ($195 million).

Nissan Diesel is the manufacturer of heavy and medium-duty truck and diesel engines.

In addition to the immediate sale, Volvo has an option of buying the remaining 6 per cent share of the truck maker from Nissan within the next four years, the Japanese automaker said.

The deal was signed today in Tokyo between Nissan president Carlos Ghosn and Volvo president Leif Johansson, Nissan said in a statement.

“We are confident that Volvo is the right partner at the right time for Nissan Diesel, and will help them build a profitable long-term business,” Ghosn said in the statement.

Japan’s second largest automaker does not want to keep primary control over a heavy vehicle maker as revenue in the sector is extremely volatile, the Nihon Keizai Shimbun said in an earlier report.

Volvo had already bought French automaker Renault's heavy vehicle division in 2001. Renault controls 44 per cent of Nissan and 20 per cent of Volvo.

Ghosn, who is credited with rescuing Nissan from near bankruptcy after taking over in 1999, became chief executive officer of Renault in April while remaining Nissan's president and chief executive.

Meanwhile, Nissan Motor and Volvo also agreed to review the areas of co-operation, together with Dongfeng Motor in commercial vehicles in China, the Nissan statement said.