24-01-2007 Dongfeng
Motor Corporation, one of China's largest commercial vehicle producers, said Tuesday
it will cooperate with the world leading auto maker AB Volvo in making medium
and heavy-duty commercial vehicles.
Sweden-based AB Volvo will invest
in the medium and heavy-duty commercial vehicle and engine business of Dongfeng
Motor, a joint venture owned by Dongfeng Motor Corp. and Japan-based Nissan Motor.
The four companies have signed a framework agreement, Xinhua learned from Dongfeng
Motor Corporation's Beijing office on Tuesday.
The non-binding agreement
says Nissan Motor will focus on long-term cooperation with Dongfeng Motor Corp.
in passenger vehicles and light-duty trucks.
Last March, Nissan Motor
sold most of its 19 percent stake in Dongfeng Nissan Diesel Motor Co., which produces
heavy-duty trucks, chassis and cement mixers, to AB Volvo for 1.5 billion kronor
(US$210 million).
Dongfeng will forge competitive alliances with Nissan
and Volvo to develop products that reflect each partner's specialist expertise,
said the company.
As China's top producer of both medium and heavy-duty
trucks, Dongfeng Motor was established in 2003 by Dongfeng Motor Corp. and Nissan
Motor, who each have a half stake in the company.
AB Volvo is the world's
second largest producer of heavy-duty commercial vehicles. Its products include
trucks, buses, construction equipment, drive systems and aerospace components.
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