Volvo to be biggest in heavy trucks with Dongfeng
BEIJING/STOCKHOLM (REUTERS) - Sweden's Volvo said it will surpass Daimler as the world's biggest maker of heavy trucks after agreeing to set up a joint venture (JV) in China with Dongfeng Motor Group Co.
Volvo will pay 5.6 billion yuan (S$1.1 billion) for a 45 per cent stake in the JV, giving it access to China where it currently has only a minor presence.
China was... "a little bit of a missing link in our global strategy for... Volvo trucks", Volvo chief executive Olof Persson said in a conference call with analysts and journalists. "With this agreement... we get a major foothold and share in the world's largest truck market."
The two firms will form a new venture called Dongfeng Commercial Vehicles after the Chinese firm buys Japan's Nissan Motor Co out from their joint venture in medium and heavy-duty trucks.