Committed to becoming most competitive global CV alliance
Exactly two years ago, the Dongfeng Motor Group (DFG) and AB Volvo signed a master co-operation agreement to form a 55:45 commercial vehicle joint venture in China. The joint venture, named Dongfeng Commercial Vehicles Co. Ltd. (DFCV), set up recently, ensures excellent opportunities for the Dongfeng brand to grow both within and outside China.
DFCV will develop, manufacture and sell Dongfeng-branded vehicles. Its products cover a full range of both medium-duty and heavy-duty trucks, buses, special vehicle chassis, engines and transmissions. By utilizing the technologies and expertise of both shareholders, DFCV will continuously improve its operations related to product development, product planning, production, sales and marketing. The company will serve both domestic and overseas customers and develop its operations to meet the needs of a growing overseas customer base.
At the DFCV inaugural function, Mr. Xu Ping, DFG Chairman, said the establishment of the new joint venture would enhance the competitiveness of DFCV’s core business, strengthen its R&D expertise in complete vehicle and key powertrain components, and actively expand its overseas business, which will increase the competitiveness of the Dongfeng brand in the global market.
Olof Persson, President and CEO of Volvo, commented: “The establishment of DFCV entails a fundamental change in the Volvo Group’s opportunities in the strategically key Chinese truck market, which is the largest in the world. Together with Dongfeng, we will build a globally competitive company with excellent potential for growth and profitability inside and outside China.”
Huang Gang, DFCV President, said: “DFCV will co-operate based on the principles of respect, trust and win-win. We are dedicated to strengthening our leading position in China and making Dongfeng Trucks a well-known global brand.”