Volvo and Dongfeng Group are to Carry out Cooperation
September 28,2007
Nowadays Industrial News of Sweden reported that the cooperation negotiation between Sweden Volvo and China Dongfeng Group was drawing to an end, and everything has run smoothly. They were about to carry out cooperation in China in May of next year.
The development speed of China truck market attracts people’s attention. Two parties are eager to start their cooperation as early as possible; however, it needs the approval of Chinese government. Chinese government also hoped urgently to make Volvo truck and its parts localized. Therefore, two sides will jointly establish the R & D institution to research on the ways to reduce import parts’ proportion. The heavy truck of Dongfeng Group R & D institution is to be taken apart to set up a joint venture corporation with Volvo. Volvo and Renault truck will be produced in an automobile factory of Dongfeng Group.
Although the fast development of China truck market, the market share of Dongfeng Group was declined. Therefore, Dongfeng Group expected to be revitalized in aid of such joint venture and accelerate its development.
The development speed of China truck market attracts people’s attention. Two parties are eager to start their cooperation as early as possible; however, it needs the approval of Chinese government. Chinese government also hoped urgently to make Volvo truck and its parts localized. Therefore, two sides will jointly establish the R & D institution to research on the ways to reduce import parts’ proportion. The heavy truck of Dongfeng Group R & D institution is to be taken apart to set up a joint venture corporation with Volvo. Volvo and Renault truck will be produced in an automobile factory of Dongfeng Group.
Although the fast development of China truck market, the market share of Dongfeng Group was declined. Therefore, Dongfeng Group expected to be revitalized in aid of such joint venture and accelerate its development.
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