May 13, 2013
The European Commission has approved Volvo Trucks’s bid to partner with China’s Dongfeng Motor, clearing the way for the Swedish truck maker to become the behemoth of the industry.
Under the terms of the $900 million deal, Volvo Trucks will receive a 45 percent stake in the Chinese’s company’s Dongfeng Commercial Vehicles (DFCV) unit, giving it joint control with Dongfeng Motor.
The join venture launches Volvo past Daimler as the world’s largest manufacturer of heavy-duty trucks.
Dongfeng Motor and AB Volvo established a strategic joint venture partnership this January, focusing on manufacturing Dongfeng brand commercial vehicles powered by Volvo technology for sale in both China and foreign markets.