Dongfeng Motor and AB Volvo to cooperate on medium and heavy-duty commercial vehicles
23/1/2007 17:19
Dongfeng Motor Corporation, one of China's largest commercial vehicle
producers, said today it will cooperate with the world leading auto maker AB
Volvo in making medium and heavy-duty commercial vehicles.
Sweden-based AB
Volvo will invest in the medium and heavy-duty commercial vehicle and engine
business of Dongfeng Motor, a joint venture owned by Dongfeng Motor Corp and
Japan-based Nissan Motor. The four companies have signed a framework agreement,
Xinhua learned from Dongfeng Motor Corporation's Beijing office on
Tuesday.
The non-binding agreement says Nissan Motor will focus on long-term
cooperation with Dongfeng Motor Corp in passenger vehicles and light-duty
trucks.
Last March, Nissan Motor sold most of its 19 percent stake in
Dongfeng Nissan Diesel Motor Co, which produces heavy-duty trucks, chassis and
cement mixers, to AB Volvo for 1.5 billion kronor (US$210 million).
Dongfeng
will forge competitive alliances with Nissan and Volvo to develop products that
reflect each partner's specialist expertise, said the company.
As China's top
producer of both medium and heavy-duty trucks, Dongfeng Motor was established in
2003 by Dongfeng Motor Corp and Nissan Motor, who each have a half stake in the
company.
AB Volvo is the world's second largest producer of heavy-duty
commercial vehicles. Its products include trucks, buses, construction equipment,
drive systems and aerospace components.
Xinhua
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