Industry dynamics

Dongfeng and Volvo truck plan China joint venture, Dongfeng to make Infiniti cars

Publishtime:1970-01-01 08:00:00 Views:25

Here we have an interesting look into making deals in China. Dongfeng and Volvo (the truck maker) plan a joint venture to make Volvo trucks for the Chinese market. But Dongfeng already has a joint venture with Nissan which makes medium-to-heavy duty trucks that are sold under the Dongfeng-name.

Problem.

Volvo doesn’t like the Dongfeng-Nissan trucks and Nissan doesn’t like the Dongfeng-Volvo plans. According to an article from ChinaDaily Dongfeng and Nissan made a deal: Nissan will back out of the truck-joint venture and in turn Dongfeng agrees to make Infiniti’s for the Chinese market under the Dongfeng-Nissan car-joint venture.

Everybody happy. Dongfeng and Volvo van start making trucks and Nissan can finally start making Infiniti’s, when production will start however ain’t sure yet.