Swedish automotive manufacturer Volvo Group and Chinese Dongfeng Motor Group have received the National Development and Reform Commission (NDRC) approval for the establishment of a joint venture in China.
The joint venture is subject to the approval of additional authority approvals. The transaction is expected to take place in mid 2014.
The transaction will strengthen Volvo's position in the medium-duty and heavy-duty truck segment.
In January 2013, AB Volvo signed an agreement with the Chinese vehicle manufacturer Dongfeng Motor Group (DFG) to acquire 45% of Dongfeng Commercial Vehicles (DFCV), a new subsidiary of DFG. The transaction will include a major part of DFG's medium- and heavy-duty commercial vehicles business.
Earlier in December 2013, Dongfeng also received an approval from the NDRC for their joint venture company, Dongfeng Renault Automotive Company (DRAC), with French carmaker Renault in China.
