Chinese Trucking News: Dongfeng and Volvo in Talks
Chinese vehicle manufacturer Dongfeng or Eastwind in English today announced that they are considering selling a stake in its commercial vehicle unit to Swedish truck maker AB Volvo.
The unit is part of Dongfengs joint venture with Japans Nissan Motor Co. The three parties were discussing whether Volvo would replace the Japanese company as Dongfengs partner in the medium and heavy-duty commercial vehicles arm, the Chinese automaker said in a statement, The Associated Press reported today.
Nissan would then focus on just the passenger car and light commercial vehicle unit, said Dongfeng, which is listed in Hong Kong.
Dongfeng said the companies have not entered any binding agreements that will require the approval by the relevant authorities of Beijing.
Dongfeng Motor, set up in June 2003, is owned equally by Nissan and Dongfeng. Under the joint venture, passenger cars are produced under the Nissan brand, while trucks under the Dongfeng name.
I wonder what Nissan top brass are thinking right now? Source: China Daily