Swedish auto manufacturer Volvo Group has signed an agreement with Hubei Province-based state-owned Chinese auto company Dongfeng Motor Corporation (DFG) to acquire a 45 percent stake in DFG’s new subsidiary Dongfeng Commercial Vehicle Co. (DGFV). DFG will hold the remaining 55 percent in the company which will include “the major part of DFG’s medium- and heavy-duty commercial vehicles business”. With the deal, Volvo Group will become the world’s largest producer of heavy-duty trucks, surpassing Daimler.
“This is a very exciting venture that will combine the best of two worlds, strengthening the positions of the Volvo Group and Dongfeng and offering excellent opportunities to both parties,” stated Volvo’s president and CEO Olof Persson. He added, “Combining Dongfeng’s strong domestic position and know-how with the Volvo Group’s technological expertise and global presence will offer DFCV excellent potential for growth and profitability in and outside China.”
