The cooperation between Volvo and national enterprise is not smooth

(chinatrucks.com, April 6, 2010) Volvo has predicted that Chinese truck market has the potential to be the second large market for heavy truck after American heavy truck market. The JV of Jinan Huawo truck established by Volvo and Sinotruk was set up in 2003. However, the program was at a stand still because the sale price for the truck was too expensive to be afforded. Sinotruk and MAN announce to set up a new JV instead of Volvo.

Actually, Volvo is seeking a new partner when the cooperation between Sinotruk was blocked, and Dongfeng became the second goal. The cooperation between Volvo and Dongfeng is not smooth as well because the assets and share authority are not settled.

The insider analyze that over 90% commercial vehicle are self brand, and the foreign brand is too expensive to form the scale, and this is the main reason for the unsuccessful cooperation between Volvo and China enterprise.

Volvo shall change the strategy because domestic heavy truck enterprise is growing so fast and the famous foreign heavy truck company are coming into China. Instead of putting Volvo brand into Chinese technology, Volvo technology shall be put in first, and then the brand.

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