Volvo Group to expand truck business with Dongfeng

Shanghai, July 1 (Gasgoo.com) In the wake of the Volvo FM, FH and the flagship model Volvo FH16, Volvo Trucks, a divison of Volvo Group, has recently launched its all-new heavy truck Volvo FM in Shanghai city, China, and has also introduced its latest Volvo FE Series to venture into the high-end truck segment in the China auto market, media reported.

Volvo Group must conduct talks with both China National Heavy-duty Truck Company (CNHTC) and its Chinese venture Dongfeng Motor Group Co. on the possibility of expanding its truck business in China, after ending its cooperation with the CNHTC a while ago. The cooperation is possible, so we are willing to have a try, said Leif Johansson, President & CEO Volvo Group.

Volvo Trucks' Asia president Par Ostberg has also said recently that Volvo Group aims to expand its truck unit in China through its venture with Dongfeng.

Moreover, Volvo Group will continue to import Volvo trucks and Renault trucks into China and to develop its construction equipment business in the country. In 2001, Volvo Group purchased Renault Trucks and Mack Trucks and created Volvo Trucks, the world's second largest producer of heavy trucks.

However, whether to expand Volvo Group's UD Truck (former Nissan Diesel) business in China is up to the regulators of the CNHTC. In 2007, Volvo Group took complete ownership of Nissan Diesel to extend its expansion in the Asian pacific market.

Dongfeng-Volvo Company, a 50/50 joint venture between Volvo Group's subsidiary UD Trucks and Dongfeng Motor Group Co., is now Volvo Group's largest foreign truck manufacturer with an annual capacity of 10, 000 units. The combined sales of the Volvo trucks and the UD trucks in China are expected to reach 2,000 units this year.

In addition, the economic recovery spurred global sales of the Volvo truck to 13,577 units in May this year, with the Asian sales growth accounting for as much as 90%.