Volvo and Dongfeng in commercial vehicle joint venture

Swedish truck maker Volvo and Dongfeng Motor Group Co. have agreed to set up a commercial vehicle joint venture in 2012. The newspaper Ecomomic Observer reported that Dongfeng will own 55% of the joint venture and the remaining 45% will go to Volvo. Dongfeng has an ongoing 50-50 joint venture with Nissan Motors which manufactures commercial and passenger vehicles and as a result of the new joint venture with Volvo, Nissan will fully divest itself of medium and heavy truck manufacturing. In return, Dongfeng will support Nissan’s production of Renault and Infiniti passenger cars. AB Volvo owns the truck business and operates independently from Volvo Cars, which is owned by the Zhejiang Geely Holding Group. (December 7, 2011)