Dongfeng and Volvo resume progress in cooperation

According to report of Shanghai Securities News, Dongfeng Motor Group and Volvo are going to set up a joint venture by equal contribution proportion. The new company is projected to manufacture heavy duty trucks, which probably will try to develop a new truck model for a global market.

People from Dongfeng Motor Group said the truck model on which the two truck makers are going to cooperate has been decided and it is said that the cooperation will be released probably during Beijing Auto Show in April. It is reported that the brand Dongfeng and the production base Shiyan in Wuhan Province will be reserved. As production base of Dongfeng commercial vehicles, Shiyan resumed its production on Feb. 10th. Though departments of sales, purchase, R&D hasve moved to Wuhan city, the assembly department, engine department, vehicle body department and other key departments are still in Shiyan. The result is the heavy duty truck production of the new joint venture will be probably carried out both in Wuhan and Shiyan.

In Sep. of last year, there were stagnancies in cooperation of the two truck makers. It is said that the reason was Volvo wanted Dongfeng Motor to give up the brand Dongfeng which would be exclusively used by the joint venture while Dongfeng Motor Group refused to do this.

Dongfeng commercial vehicle Co., Ltd sold 186,170 units complete commercial vehicle last year, increased by 22% y-o-y. Once the cooperation is started, Dongfeng Motor’s leading position in China auto industry will be enhanced.

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