Volvo truck to pair with China's Dongfeng
January 27 , 2013
Swedish truck maker AB Volvo says it’ll acquire a 45 % stake in a new heavy-truck unit of China's Dongfeng Motor Group Co. for a total 5.6 billion yuan ($890 million). Volvo CEO Olof Persson says the move to buy the stake in Dongfeng Commercial Vehicles was part of a clear strategy to become the world's largest maker of heavy-duty trucks. He said completion is expected within a year and will increase Volvo's net debt by around 6 billion kronor ($926 million). In 2011, Volvo was the world's 3rd largest truck manufacturer with 180,000 units sold while Dongfeng was second with 186,000 vehicles sold.