Volvo to be world’s biggest heavy-duty truck maker after strategic alliance with China’s Dongfeng

dongfeng-volvo

Volvo is set to be the world’s largest heavy-duty truck maker after it signed an agreement with China’s Dongfeng Motor Group (DFG) to acquire 45% of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will include the major part of DFG’s medium- and heavy-duty truck business.

“This is a very exciting venture that will combine the best of two worlds, strengthening the positions of Volvo and Dongfeng and offering excellent opportunities to both parties,” Volvo’s president and CEO Olof Persson said. “Combining Dongfeng’s strong domestic position and know-how with Volvo’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 conditions, including the approval of relevant anti-trust agencies and Chinese authorities. The purchase consideration amounts to 5.6 billion yuan (RM2.78 bil), and follows a recent agreement between DFG and Nissan, in which the former bought out Nissan in a heavy-duty commercial vehicle JV.

Volvo-FH-Series-Truck

Volvo is currently the world’s third largest manufacturer of heavy-duty trucks with 180,000 units sold in 2011. Dongfeng was the second largest producer of heavy-duty trucks in 2011, with total sales of 186,000 units, of which approximately 142,000 units were produced by the part of the company that will be included in DFCV.

“China is the world’s largest truck market with a total market for heavy trucks equivalent to the European and North American markets combined. The partnership between the Volvo Group and DFG will strengthen DFCV’s already strong position in China and provide the company with the right conditions for successful international expansion,” Persson added.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • like dugong vios

    Like or Dislike: Thumb up 4 Thumb down 60
    • The Godfather on Feb 10, 2013 at 10:30 pm

      Lame…

      Like or Dislike: Thumb up 0 Thumb down 0
    • AVH® on Feb 10, 2013 at 10:34 pm

      You officially replaced Sam Loo in my annoying list. but Sam Loo at least make me laugh with his stupidity ,you fail to amuse and are rather annoying. I don’t see anything in the article looking like or relevant to a dugong vios.

      On the side note, Happy Chinese New Year to you, and I’am still finding a way to put pictures on my comment, too much thieves around.

      Like or Dislike: Thumb up 14 Thumb down 2
      • that because you really don’t know what is dugong really about, hehehe

        Like or Dislike: Thumb up 1 Thumb down 19
      • Where ur pictures?

        Like or Dislike: Thumb up 1 Thumb down 16
        • AVH® on Feb 11, 2013 at 6:40 pm

          Oh, I’ve enough spare time to watch Nat Geo about Dugong, hack when I was a child I love watching this kid show called Stanley.

          The dugong and its closest relatives, the manatees are mammals ,and thou that means that they are some what related to Whales and Dolphins, they are actually related closer towards elephant, Yes, Elephants. Christopher Columbus on his way towards what will be America, famously mistaken a manatees for a mermaid, in fact it is belief that Dugong sparks the myth about mermaids.

          Off the boring bit, I think it is you that do not know what a dugong is, what has a tall, boxy, square Volvo trucks has anything to do with a large, roundish mammal that is believe to be a mermaid. And if you think that the Dong Feng names sound like Dugong, oh your stupidity. Get off the comments section and watch more Stanley.

          Like or Dislike: Thumb up 5 Thumb down 3
          • i talk about design, i never talk about name “dongfeng” dugong, hahaha

            Like or Dislike: Thumb up 2 Thumb down 10
          • AVH® on Feb 12, 2013 at 3:14 pm

            read “what has a tall, boxy, square Volvo trucks has anything to do with a large, roundish mammal that is believe to be a mermaid.”

            Like or Dislike: Thumb up 1 Thumb down 1
      • tokmoh on Feb 11, 2013 at 8:35 pm

        gravatar.com

        Use same email you use for commenting here.

        Like or Dislike: Thumb up 0 Thumb down 0
    • Your face look like dugong too…

      Like or Dislike: Thumb up 9 Thumb down 1
    • Hadi75 on Feb 11, 2013 at 5:46 pm

      Stupid la you….comparing truck with sedan…

      Like or Dislike: Thumb up 6 Thumb down 1
  • The trucks look damn solid.

    Like or Dislike: Thumb up 0 Thumb down 0
  • i always wonder why does trucks always have the boxy shape. cant they make any aerodynamics design so it could at least save some fuel?

    Like or Dislike: Thumb up 6 Thumb down 11
    • tokmoh on Feb 11, 2013 at 8:41 pm

      1. Maximise cargo space

      2. Trucks are not F1, zooming around at >300km/h.

      At low speed, fuel saving by aerodynamic design is negligible.

      Like or Dislike: Thumb up 8 Thumb down 2
  • Jimmy on Feb 11, 2013 at 12:15 am

    :) I think the designers of all trucks are stupid you know.

    Like or Dislike: Thumb up 2 Thumb down 22
    • berombon on Feb 11, 2013 at 11:20 am

      I think it is you who is stupid here. It is all about maximizing cargo or carrying space and hence the boxy design…

      Like or Dislike: Thumb up 8 Thumb down 2
    • Grant on Feb 11, 2013 at 1:57 pm

      At least they get to design something for the masses. What are you? Nuclear Scientist???

      Like or Dislike: Thumb up 5 Thumb down 1
    • Jimmy on Feb 12, 2013 at 4:13 pm

      I saw two wise intelligent persons here who understood what I really talked about behind the words. The other sixteen need to improve.

      Like or Dislike: Thumb up 0 Thumb down 0
  • clemenza on Feb 12, 2013 at 6:24 am

    only fool will buy buy a chinese car

    Like or Dislike: Thumb up 1 Thumb down 7
  • The engine is so big therefore the body must be tall. They can make it aerodynamic but the head will be too long. Truck shall be as short as possible to maximize turning circle. Cd is not important as this kind of truck has 700+hp, 1000+nm tq, wgt more than 50ton wth load. Everyone knows about these. Boxy design is just suited for truck.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Fahmi on Feb 12, 2013 at 5:37 pm

    A truck has lots of power, no need streamlining like F1 car… It makes the truck head too long…

    Like or Dislike: Thumb up 0 Thumb down 0
 

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