Volvo teams up with Chinese company

The Swedish car and truck manufacturer Volvo announces a partnership with the Chinese truck manufacturer Dongfeng Motor Company (DFG).

Volvo gets a 45 percent interest in the new daughter of DFG and thus claims to be the largest truck manufacturer in the world, as international media reporting.

The Swedish group pay 5.6 billion yuan (670 million euros) for the minority interest.

"China is the largest truck market in the world with total market size for the European and North American markets added," says Olof Persson, CEO of the Volvo.

The new company where Volvo has an interest in getting going Dongfeng Commercial Vehicles called. According to Persson, the new group's strong market position in China's Dongfeng combined with the technological knowledge of Volvo.

Green light
Volvo is now the third-largest truck manufacturer with 180,000 vehicles sold per year. Dongfeng is the number two with 186,000 sales per year. The parts of Dongfeng where 142,000 vehicles were produced pass into the new joint venture.

Chinese authorities have yet to give their approval for the agreement. Volvo thinks within a year to get the green light.