Volvo, Nissan and Dongfeng in joint venture discussions

Dongfeng Motor Group Company Limited (DFG), Nissan Motor and AB Volvo is now deepening discussions on a possible AB Volvo investment in the heavy and medium-duty commercial vehicle business currently included in the Chinese joint venture between DFG and Nissan Motor – Dongfeng Motor Co, Ltd (DFL).

“We will now initiate more in-depth discussions about our possible future co-operation,” stated Xu Ping, Board Chairman of DFG and Jorma Halonen, Executive Vice President and Deputy CEO of AB Volvo.

Nissan Motor will focus on passenger cars and light commercial vehicles and has divested its holding in Nissan Diesel to AB Volvo. Subsequently, DFG, Nissan Motor and AB Volvo initiated discussions at the end of last year with the Chinese authorities on the future possible cooperation of the parties. DFG intends to establish more competitive alliances with Nissan and AB Volvo respectively, in order for all parties to achieve the best development in their specialised field.

To move forward on this issue, DFG, Nissan Motor, DFL and AB Volvo also have signed a non-binding framework agreement with the intention of AB Volvo to invest in the heavy and medium-duty commercial vehicle and engine business and future engine business, while Nissan Motor remains committed to the longterm cooperation with DFG regarding passenger vehicles and the light commercial business.

Any future definitive agreement regarding such a transaction will be subject to approval by Chinese authorities.