- Mergers & Acquisitions
Volvo Trucks drops plan to acquire JMC and its truck plant in China
Volvo Trucks and Jiangling Motors Co., Ltd will no longer pursue the previously announced acquisition of JMC Heavy Duty Vehicle Co., Ltd, a subsidiary of Jiangling Motors Co., Ltd., and its manufacturing site in Taiyuan, Shanxi province, China.
In a statement issued on May 12, 2023, Volvo Trucks said the two parties will not pursue the transaction as the conditions for closing the transaction were not met. Volvo Trucks will continue to export trucks to customers in China.
“Volvo Trucks has a long history of successful business activities in China. We have great opportunities on the Chinese market and we will continue the efforts to develop our presence. Our long-term ambition is to grow our business and continue delivering our high-quality trucks to customers in China, together with our dealer partners in the country,” said Roger Alm, president, Volvo Trucks.
Volvo Trucks announced its CNY0.8 billion (USD114 million) acquisition on August 23, 2021. The objective of the acquisition was to start production of the new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks in Taiyuan for customers in China from the end of 2022.
The operations in Taiyuan would have included stamping, welding, manufacturing of cabs, painting and the final assembly of Volvo trucks. After investments in the facility, the plant was to have the capacity to produce 15,000 Volvo trucks per year, with the potential to increase the capacity further, within a few years.