Volvo is a Swedish car and truck maker founded in 1927.
The deal creates the world's largest truck maker and a formidable force in the auto market.
Today, Ford is the second largest car and truck maker in the world, with a staff of 370,000.
One-third of revenues come from traditional sales to truck makers, down from 45 percent in 1984.
It has told its truck makers that by 2015, it wants to double the efficiency of the fleet.
It was truly one of Studebaker's better ideas, and caught on later among the major truck makers.
By 2007 the company had gained government approval for passenger car production but, nonetheless, continued to be referred to as a truck maker.
A year ago, the world's second-biggest truck maker took orders for 42,000 new lorries in Europe.
The truck maker lost $97 million for the first half of the year and went into default on its large bank loans.
The combined group will be the world's largest truck maker and a more powerful competitor in the automobile market.
