Manufacturing News

Dongfeng plans JV with Volvo

Chinese automaker Dongfeng Motor Group has agreed to set up a 55-45 truck venture with Volvo in China, the Chinese Business News said Tuesday.

Dongfeng will provide manufacturing facilities for the venture, to be based in its home base in Wuhan, Central China's Hubei Province.

Volvo will provide technology know-how, the newspaper said, citing an unnamed executive at the Chinese company.

The deal, scheduled to be signed Saturday, will give Volvo an opportunity to tap China's heavy truck market, long dominated by local players.

Dongfeng is also planning to launch a 7.2 billion yuan joint venture with French firm Renault SA to produce passenger cars, according to a recent statement by Hubei Environmental Protection Bureau, which is assessing the venture's environmental impact.

The joint venture will have a production capacity of 150,000 units annually. The Dongfeng-Renault venture is reportedly scheduled to break ground in May, media reports said.

Dongfeng has established several joint ventures with foreign automakers such as Japan's Nissan, South Korea's Kia and France's Peugeot.

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