Volvo seals the deal on Dongfeng Commercial Vehicles07 January 2015

Volvo has completed the acquisition of 45% of Chinese truck manufacturer Dongfeng Commercial Vehicles (DFCV) in a deal worth 5.5 billion yuan (approximately £600 million).

First announced in January 2013, the agreement has now been approved by the Chinese authorities. The remaining 55% of DFCV remains with parent company Dongfeng Motor Group.

DFCV manufactures medium- and heavy-duty trucks and controlled 15% and 18% of these markets respectively in China for 2013.

"This strategic alliance is a real milestone and entails a fundamental change in the Volvo Group's opportunities in the Chinese truck market, which is the largest in the world," says Olof Persson, Volvo's president and CEO.

Volvo says the agreement will be recognised with the formation of an associated company.

Author
Laura Cork

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