Dongfeng Motor Group (DFG), Nissan Motor and AB Volvo are deepening discussions on a possible 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 (DFL).
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“We will now initiate more in-depth discussions about our possible future co-operation,” said Xu Ping, board chairman of DFG and Jorma Halonen, executive vice president and deputy CEO of Volvo.
Nissan Motor will focus on passenger cars and light commercial vehicles and has divested its holding in Nissan Diesel to Volvo. Subsequently, DFG, Nissan Motor and 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 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 Volvo also have signed a non-binding framework agreement with the intention of 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 long term cooperation with DFG regarding passenger vehicles and the light commercial business.
Any future agreement will be subject to approval by Chinese authorities.
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