Volvo Agrees To Commercial Vehicle Joint Venture With Dongfeng - Report
December 07 2011 - 3:36AM
Dow Jones News
Swedish truck maker Volvo has agreed to set up a commercial
vehicle joint venture with Dongfeng Motor Group Co., the Economic
Observer newspaper reported on its website, citing sources familiar
with the situation.
According to the sources, Dongfeng would hold 55% of the joint
venture, with Volvo holding the remaining 45%. The companies intend
to establish the joint venture next year, the report said.
The plan would also see Nissan Motor, which has an existing
relationship with Dongfeng to make commercial and passenger
vehicles through a 50-50 joint venture, fully divest itself from
the medium- and heavy-duty truck businesses in China, the report
said. In return, Dongfeng would support the domestic production of
Renault and Infiniti passenger cars, the report added.
Officials at the three companies couldn't be immediately
available for comment.
Volvo's truck business, owned by AB Volvo, operates separately
from Volvo Cars, which is owned by Zhejiang Geely Holding
Group.
Newspaper website: http://www.eeo.com.cn/
-By China Bureau, Dow Jones Newswires; 8621 6120-1200;
djnews.shanghai@dowjones.com
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