Dongfeng Motor Group might work with Volvo to manufacture commercial-vehicles

China’s third-largest automaker Dongfeng Motor Group has said that Volvo AB might end up replacing Nissan Motor as they partner in their project to build large commercial-vehicles.

This could happen because Volvo just recently acquired the Nissan’s stake in a truck making affiliate.

The announcement helped Volvo at the stock market as their share prices rose to record levels.

Volvo might now even considering investing in the Chinese company. Dongfeng plans to continue their collaboration with Nissan in their passenger-car and light commercial-vehicle venture.

Olive Xia, an analyst at Hong Kong based Core Pacific-Yamaichi spoke on this new development: “Dongfeng is a strong partner that may help Volvo boost its sales and exports. Volvo also has better technology in heavy-truck manufacturing than Nissan, so the change will give Dongfeng the best partner in all categories.”

Popularity: 5%