VOLVO AB may face costs of up to 500 million kronor (US$72 million) if authorities in China force it to end its partnership with China National Heavy Duty Truck Corp, Dagens Industry reported, citing unidentified people familiar with the situation.
Volvo has three joint ventures in China, compared with the permitted two, one of which it is starting with China National competitor Dongfeng, the newspaper said. If Volvo is required to end its collaboration with China National, it could lose the 300 million kronor it invested in a truck factory and may have to pay damages, the newspaper reported.
All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: firstname.lastname@example.org.
Anytime and anywhere to know the dynamics of China's auto industry