13-12-2007

On December 10, The Volvo Group has signed a letter of intent with the Indian vehicle manufacturer Eicher Motors Limited regarding the establishment of a new Indian joint-venture company.

According to the letter of intent, Volve will invest 768 million US dollars buying 8.1 percent stock right of Indian Eicher Motors and holds 45.6 percent of the joint-venture company. After the establishment, the joint-venture company will hold Eicher Motors Limited's entire truck and bus operations and the Volvo Group's Indian sales operations within trucks. Volve expressed this agreement need the approval by both the government and the Eicher's majority shareholders.

In addition, Volvo will continue the cooperation with Indian Jaico Motors' joint plant to produce buses and commercial vehicles. In China, Volvo has made little progress about the cooperation with Dongfeng Group because of the policy impediment.

It is reported that Indian Eicher Group has negotiated with HYUNDAI and DaimlerChrysler about Joint venture project before, but at last in vain.

Editor:James Yin from Chinabuses.com

FILL IN THE FEEDBACK FOR OUR SERVICE APPLICATION We Will Help You With Our Best consultation: overseas consultation Security Code : Name: * Company: * Position: Telephone: * Fax: * Address: * Postalcode: E_mail: * Message Volve Signed a Joint Venture Agreement with Indian Eicher: *