by Staff Writers
Stockholm (AFP) Jan 26, 2013
Volvo Trucks says it expects to overtake Daimler as the world's leading producer of heavy trucks, after acquiring a 45 percent stake in Chinese auto manufacturer Dongfeng.
Currently the world's third biggest producer behind Dongfeng and German-owned Daimler, the merger with its nearest rival will, Volvo believes, elevate it to the top spot.
The Swedish company said in a statement Saturday that it had signed an agreement with Dongfeng Motor Group (DFG) to acquire 45 percent of its new subsidiary Dongfeng Commercial Vehicles (DFCV) that will include "the major part of DFGs medium- and heavy-duty commercial vehicles business."
The deal, worth 5.6 billion yuan ($900 million, 669 million euros), will allow Volvo to "become the world's largest manufacturer of heavy-duty trucks," the statement said.
In 2011 Volvo produced 180,000 units, 6,000 fewer than Dongfeng, but a large part of the Chinese firm's production will pass to the new subsidiary.
The deal should be completed in the next 12 months, Volvo said.
Car Technology at SpaceMart.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|