A proposed collaborative deal between Volvo Truck and Dongfeng remains on ice due to political obstacles in China.

According to a report in Dagens Industri, Dongfeng is hopeful the political obstacles to a deal with Swedish Volvo can be overcome, but that requires Volvo to end its existing collaboration with China National.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Chief Executive at Dongfeng, Huang Gang, said the Volvo’s collaborations with China National hinders a deal with Dongfeng as Chinese legislation bans more than one joint venture between truck manufacturers.

The two sides plan to create a 50-50 joint venture in China to produce Volvo and other brands of heavy duty trucks. A non-binding agreement was signed in 2007, but remains subject to Chinese government approval.

Dongfeng is also rumoured to be interested in Volvo Car and is thought to be itching to launch its own brand of passenger vehicles in China. Acquiring Volvo Car would provide a big boost to those plans.