For many years, it eventually ended in separation. Last week, Volvo Group, China National Heavy Duty Truck (BVI) Ltd. and China Heavy-Duty Truck Group Co., Ltd. have signed an agreement pursuant to which Sinotruk (BVI) and CNHTC agreed to purchase Volvo Group. In the 50% stake in Jinan Huawo Truck Co., Ltd. (JV), the agreement still needs the approval of the Chinese government.
Once was the first heavy truck joint venture
Jiang Wei, vice president of Volvo (China) Investment Co., Ltd., said that how the current transfer of shares is specifically discussed is still under discussion. At this point, Volvo completely withdrew from the heavy-duty project.
The Volvo Group stated that in 2003 the two parties started a partnership. For various reasons, the joint venture company did not achieve the commercial success expected by both parties. Waldorf Trucks, a joint venture between Volvo Trucks and China National Heavy Duty Truck Group, is China's first approved heavy-duty vehicle joint venture project. It was established in 2003 and has a total investment of RMB 1.6 billion. The investment ratio is Volvo and Sinotruk. Each 50%. At the time, the cooperation period signed between the two parties was 30 years. At the end of March of the second year, the first domestic Volvo truck was off the assembly line. At that time, it was hoped that the annual production and sales scale would be around 20,000.
It is indeed a pity that a project that has been negotiated for nine years before the end of the joint venture has ended. However, due to the high price, domestic Volvo truck production has been very small, and the cumulative sales volume over the past few years has only reached 10,000 units. In fact, the project has been shut down for two or three years. This is already an open secret within China National Heavy Duty Truck.
Focus on cooperation with Dongfeng
Despite breaking up with the heavy truck , Volvo's business in China will not be weakened. Jiang Xi said in an interview that Volvo Group will focus on cooperation with Dongfeng and continue to maintain the import of Volvo Trucks and Renault Trucks, and its main business in China - construction machinery will continue to strengthen.
Lu Botian, president of Volvo Trucks China, said in an interview with the newspaper a few days ago that international truck giants want to open up the Chinese market and eventually have to achieve domestic production through joint ventures. He also said that Volvo mainly promotes cooperation with Dongfeng through the group's Nissan Diesel Co. However, Dong Fu Motors Corporation Party Committee Standing Committee, Vice President of Dongfeng Motor Co., Ltd., and Dongfeng Automobile Co., Ltd. General Manager Zhu Fushou said in an interview in Guangzhou in November that the company’s cooperation with Volvo is currently not followed.
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