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Business / Auto China

Dongfeng-Volvo joint venture opening doors for both sides

By Li Fusheng (China Daily) Updated: 2015-02-02 15:45

It sold more than 170,000 medium-duty and heavy-duty trucks in 2013. However, the figure fell to 150,000 in 2014 due to China's slowed economic growth as well as the government's announcement in June that stricter emission requirements would be introduced in 2015.

Industry insiders said weaker demands yet fierce competition in the Chinese market is one of the major reasons that Dongfeng would like to foray into overseas markets.

Xu Ping, chairman of the joint venture's parent company Dongfeng Motor Corporation, said: "The partnership will improve the competitive edge of our commercial vehicles by enhancing the capacity in powertrain and vehicle development and facilitating Dongfeng's inroads into overseas markets."

The partnership is also expected to help improve Volvo's popularity in the Chinese market. "This strategic alliance is a real milestone and entails a fundamental change in Volvo Group's opportunities in the Chinese truck market, which is the largest in the world," said Persson.

When asked whether there will be competition between the joint venture and Volvo in the market, Persson said he believed the market is big enough and there will not be trouble in this respect.

Headquartered in Gothenburg, Sweden, Volvo has about 100,000 employees worldwide. It has production facilities in 18 countries and regions and its products are sold in more than 190 countries. In 2013, its net sales revenue amounted to $42 billion, according to its website.

 

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