Volvo to cooperate with Dongfeng Motor

Dongfeng Motor Group Co., Ltd (DFG) unveiled on Jan 22 that discussions on the possibilities for cooperation in the heavy and medium-duty commercial vehicle business in China between Volvo and Dongfeng Motor Co., Ltd are still underway.

Spokesman Hu Xindong from Dongfeng Motor said that the three parties are deepening discussions on a possible investment but the implementations of the schedules will be subject to approval by Chinese authorities.

Volvo will invest in the heavy and medium-duty commercial vehicle while Nissan Motor will focus on passenger cars and light commercial vehicles.

Earlier in 2000, Volvo incorporated Renault truck and US Mack with 20% company shares, making Volvo the top European and the world second largest truck maker, next only to DaimlerChrysler.

However, Volvo has already owned three commercial vehicles JVs in China, including Sunwin bus, Silver bus and Huawo truck. According to China auto industry policy, one foreign-fund auto enterprise is permitted to own no more than two JVs to manufacture complete vehicles within same range. So Volvo has run out of its quota.