Sweden’s AB Volvo said on Friday that its Chinese subsidiary, Volvo China Investment Co, Ltd, has entered into a master co-operation agreement with the Bank of China in Beijing.
The agreement, coordinated on Volvo’s behalf by Volvo Financial Services, is over the provision by the Bank of China of credit support to Volvo China and its branch and subsidiary companies. This includes services such as short and long-term loans, guarantees, letters of credit, and other credit services. In addition, Bank of China will offer comprehensive financial services including cash management, settlement of foreign currencies, accounts receivable and other financial services.
The second part of the agreement concerns the creation of finance packages for AB Volvo’s dealers and customers. The will be used for Volvo group products such as construction equipment, buses, and Volvo, Renault and MACK trucks.