Volvo ends joint venture with CNHTC

• Source: Global Times
• [18:18 November 17 2009]
• Comments

Volvo Car Corporation (Volvo) announced that it would end its cooperation with China National Heavy Duty Truck Group Co., Ltd. (CNHTC) by selling its share of Jinan Huawo Truck Co., Ltd and quitting from the joint venture as of yesterday.

Jinan Huawo Truck Co., Ltd, which was built by Volvo and CNHTC in 2003, with a total investment of 1.6 billion yuan, is the first cooperation program in the heavy duty truck industry that was approved in China. The agreement they signed in 2003 stipulated they would cooperate with each other for 30 years. But after the company was established, there were no obvious improvements in independently developing Volvo heavy duty trucks. As a result, on July 20, CNHTC and MAN Group announced a new joint venture, leaving Volvo to quit its joint venture with CNHTC.

Volvo has discussed cooperating with Dongfeng Motor for several years, said a staff member of Dongfeng Motor; but since talks have not progressed, future cooperation is still unclear.

Agencies and Wang Yang contributed to this story