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Dongfeng Motor Group, Nissan Motor and Volvo to engage in a joint venture

In Sweden: Dongfeng Motor Group Company Limited (DFG) together with Nissan Motor and AB Volvo is now discussing on the possibility of AB Volvo investing on the heavy and medium-duty commercial vehicle business in which the DFG and Nissan Motor are on a joint venture—the Dongfeng Motor Co, Ltd (DFL).

According to Xu Ping, Board Chairman of DFG and Jorma Halonen Executive Vice President and Deputy CEO of AB Volvo, “We will now initiate more in-depth discussions about our possible future cooperation.”

Nissan Motor will focus on passenger cars and light commercial vehicles and has stripped its holdings in Nissan Diesel to AB Volvo. DFG, Nissan Motor and AB Volvo have already discussed their plan with the Chinese authorities regarding the future possible cooperation of the parties. DFG intends to establish more competitive alliances with Nissan and AB Volvo respectively, in order for all the parties to achieve the best development in their specialized field.

DFG, Nissan Motor, DFL and AB Volvo have signed a non-binding framework agreement with the intention of AB Volvo to invest on heavy and medium duty commercial vehicle and engine business while on the part of Nissan Motor it remained committed to the long term cooperation with DFG especially with regards to passenger vehicles and light commercial business.

Other future definitive agreement regarding such a transaction will be subject to approval by Chinese authorities.

About Dongfeng Notor Company, Ltd. (DFL): This company is engaged in the manufacture of passenger vehicles, commercial vehicles, engines parts and components, vehicle manufacturing equipment and other automotive related products and services. DFL is ranked number one in terms of heavy and medium-duty trucks in China and is a 50/50 joint venture between Nissan Motor and DFG. DFG is a listed company traded on the Hong Kong Stock Exchange.

About Volvo: The Volvo Group is one of the world’s leading manufacturers of trucks, buses and construction equipment, drive system for marine and industrial applications, aerospace component and services. The Group also provides complete solutions for financing and service. It has employed 82,000 people and has production facilities in 25 countries and sells their products to more than 185 markets. The Volvo Group annual sales earns them more than 20 billion euro.

The Group is also different from Volvo Cars which is the automobile manufacturer and maker of the infamous Volvo 960 and its corresponding Volvo 960 parts. Volvo Cars is owned by Ford Motor Company since 1999.

About the Author: Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.

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