X

Volvo to acquire stake in Dongfeng

Jason Cannon January 26, 2013

AB Volvo announced Saturday that the company will acquire a 45 percent stake in the heavy-truck unit of China-based Dongfeng Motor Group Co. for $890 million.

Upon completion, the move is expected rocket Volvo past Daimler as the world’s leading heavy-duty truck manufacturer. 

Volvo CEO Olof Persson, in a conference call with market analysts and journalists, said the move strengthens Volvo’s position in China, an emerging market where sales are expected to grow. Sales of heavy-duty trucks in the U.S. for the foreseeable future are expected to remain flat. 

Persson said, upon completion of the acquisition, two firms will form a new entity named Dongfeng Commercial Vehicles.

ATD Convention News

Poll

Have you revised your truck sales forecast for 2015 in the past 6 months?

Latest

Surviving your exit and succession planning

What makes a ‘perfect’ Warranty Administrator perfect?

Avoiding the pitfalls of FET

Popular

GALLERY – Friday at the ATD Convention

GALLERY – Saturday at the ATD Convention

Kenworth T880 takes Truck of the Year

Successful Dealer Award

Click here to read about the award and see the nominees for this year's award.