Volvo: No prospects of 2nd truck JV in China

After the halted cooperation with China National Heavy Duty Truck Group, Volvo will promote its partnership with Dongfeng Auto and Shandong Lingong Construction Machinery, instead of building a second truck joint venture in China, Leif Johansson, CEO of Volvo Group was reported as saying by Caing.com.

Meanwhile, Johansson revealed that he is optimistic about Geely's acquisition of Volvo. He thinks the company made a wise decision to sell Volvo car division to Ford over a decade ago and the Group will not buy back the vehicles.

Johnsson said Europe and the US still remain the key marketing areas for Volvo, in spite of the fastest growing Asian market, since the Group's development still depends on a rebounding western market.

Volvo now holds 50 percent of DND, a joint venture established with Dongfeng Auto. And the annual capacity hit 10,000 units, mainly producing heavy-duty trucks and chassis for large buses.