The Volvo Group recently reported that AB Volvo will acquire a 45-percent stake in China’s Dongfeng Commercial Vehicles (DFCV), manufacturers of medium- and heavy-duty commercial vehicles. This will make the Volvo Group the world’s largest manufacturer of heavy-duty trucks. DFCV is part of Dongfeng Motor Group (DMG), the largest heavy- and medium-duty building in China.
“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,” said Volvo president/ CEO Olof Persson. “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.”
Completion of the transaction is subject to certain conditions, including the approval of relevant anti-trust agencies and Chinese authorities. The transaction is expected to be complete within the next year.