Report: Dongfeng could become 5th Volvo truck brand

China's Dongfeng could become the fifth truck brand of global number two truck maker Volvo, a Volvo executive was quoted as saying today.

Volvo said last month it had signed a non-binding framework agreement outlining a possible investment in the vehicle joint venture —— Dongfeng Motor Co. Ltd. —— owned by Nissan Motor Co. and Dongfeng Motor Group Co. Ltd.

"Dongfeng could become a fifth Volvo brand along with Volvo, Renault, Mack and Nissan Diesel," Volvo Deputy Chief Executive Jorma Halonen was quoted as saying by newspaper Dagens Industri. "It is moving slowly, but in the right direction."

Last year, Volvo raised its stake in Nissan Diesel Motor Co., owned by Nissan Motor Co. Ltd. The move was to boost Volvo's Asian business, at least in China, where an existing truck venture, owned with CNHTC, has had weak deliveries partly due to new rules on weight loads.

Volvo has said it could invest in the heavy and medium duty commercial vehicles segment of the Dongfeng joint venture, while Nissan Motor would focus on cars and light vehicles.

"First we have to agree how to separate the passenger car business and the light trucks from the larger commercial vehicles," Halonen was quoted as saying. "Then we will have to look at what part of the commercial vehicles we want to work with."

Halonen stressed that Volvo had no intention of rushing developments in China after taking nine years to set up its first assembly plant in the country, the paper said.

"The authorities work faster now, but we still have to be patient. I have presented a date for the Volvo board and right now we are ahead of plan. I don't dare say more than that," he was quoted as saying.

The Dongfeng joint venture manufactures passenger and commercial vehicles, engines, parts and components, vehicle manufacturing equipment and other automotive-related products and services.