Volvo AB’s $900 million joint venture with China’s Dongfeng Motor Group Co. is on track to begin operations early next year, Volvo CEO Olof Persson said, according to Chinese press reports.
Persson said at the Boao Forum for Asia on Monday that the two manufacturers will work together to jointly develop new products, China Business News reported.
He also said Volvo is supportive of China’s commitment to sustainable development and improved infrastructure construction, the China Daily reported on its website.
Volvo and Dongfeng announced a joint venture in January under which Volvo would take a 45% stake in the venture, to be known as Dongfeng Commercial Vehicles.
The venture will include most of Dongfeng’s current heavy- and medium-duty business in China, the world’s largest truck market.