Volvo, Dongfeng truck venture on track for 2014
Volvo trucks’ nearly $900 million partnership with China’s Dongfeng Motor Group Co. is on track to begin operations early next year Volvo CEO Olof Persson told the China Business News Tuesday, adding the two manufacturers will work in conjunction develop new products.
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.
Dongfeng will retain a 55 percent stake in the project with Volvo holding the balance. Volvo has committed more than $891 million to the joint venture.
Persson told the publication the partnership still needs European and Chinese governmental approval.
Research and development, production and sales work for the company will be based on programs currently undertaken by Dongfeng’s commercial vehicle division. Upon receiving government approval, the two parties will begin jointly working on pricing and product strategies.