Dongfeng to Sign JV Deal with Volvo on Trucks

www.chinatrucks.com: The global second largest truck manufacturer, Volvo Group is going to set up a joint venture with Dongfeng Auto. The deal, scheduled to be signed on Jan.26th 2013 in Beijing. Both sides will set up the joint venture commercial vehicle company to manufacturing medium & heavy trucks.

According to sources from Dongfeng, Dongfeng will provide manufacturing facilities for the venture, to be based in its home base in Wuhan, Central China's Hubei Province. Dongfeng will control 55 percent of the proposed JV, with Volvo owning the remaining 45 percent.

 

Volvo truck took a fancy to dongfeng commercial vehicle production, research and development and other system, especially production economy truck system. And in the global field of vision, Volvo truck it is helpful to dongfeng commercial vehicle in the overseas market. After all, China’s commercial vehicle company in the international brand effect is not obvious advantage.

Dongfeng is also planning to launch a 7.2 billion yuan joint venture with French firm Renault SA to produce passenger cars, according to a recent statement by Hubei Environmental Protection Bureau, which is assessing the venture's environmental impact.

The joint venture will have a production capacity of 150,000 units annually. The Dongfeng-Renault venture is reportedly scheduled to break ground in May, media reports said.

Dongfeng has established several joint ventures with foreign automakers such as Japan's Nissan, South Korea's Kia and France's Peugeot.

 

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