As announced earlier, AB Volvo signed an agreement in January 2013 with Dongfeng to acquire 45 percent of a subsidiary of DFG, Dongfeng Commercial Vehicles Co. Ltd (DFCV). DFCV includes most of Dongfeng’s operations in heavy-duty and medium-duty commercial vehicles. To implement the transaction, a number of conditions had to be fulfilled, including approval from the Chinese competition authority and other relevant authorities. All approvals have been received.
Volvo says this transaction will significantly strengthen its position in medium-duty trucks while the Group will become one of the world’s largest manufacturers of both medium-duty and heavy-duty trucks.
“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,” said Volvo’s President and CEO, Olof Persson. “At the same time, it will provide us with the opportunity to become involved in growing DFCV’s international business in a manner that will benefit us and our Chinese partner.”