Dongfeng partners with Volvo to make commercial vehicles

Shanghai, June 3 (Gasgoo.com) Volvo China said recently that its joint venture with Dongfeng Motor is decided and the project is waiting for the approval of China's auto industry regulators.

Several versions of the partnership have been rumored in the industry: one is that it is a 50:50 joint venture funded by both sides, another version says the Swedish truck-maker will only input technology into Dongfeng, and the latest version is that the vehicle models made by the joint venture will carry the Dongfeng badge, not the Volvo's.

The common scenario that has been confirmed by Dongfeng insiders is that Dongfeng and Volvo will cooperate in making medium- and heavy-trucks and engines, and their plant will be built in Shiyan, the auto city of Dongfeng.

Volvo will be Dongfeng Motor's next partner after Nissan Motor in the commercial vehicle production. Nissan has already transferred some of its Dongfeng shares to Volvo in a bid to boost the joint production of engines as well as medium to heavy commercial vehicles.