Let’s talk about big vehicles. Not just SUVs and pickup trucks but really large vehicles like buses and semi-trailers. The latest news in the commercial vehicle industry is that Volvo is looking to work with the Chinese Dongfeng Motor Corporation. It is interesting that this working relationship will be between two number twos. Volvo is the second largest truck and bus producer in the world while Dongfeng is the second largest Chinese automaker.
The Auto Channel reports that a source from the Chinese automaker was quoted saying “If nothing goes wrong, the two companies will officially start cooperation by next May.” And if you are like me who’s curious what kind of trucks these two automakers can come up with, then you should also hope that nothing really goes wrong.
The way I see it, both companies will be benefiting greatly from this partnership. Volvo will be having a piece of the very big pie that is the Chinese commercial vehicle market. Dongfeng, on the other hand, can benefit from Volvo’s expertise not only on the manufacturing of reliable components but also for their safety features. For years, Chinese made vehicles are being looked down in terms of their safety. In contrast, safety is what Volvo has been specializing on. The Swedish company has been making safety belts more durable than say a Saturn center shoulder belt.
The partnership between the two companies have been budding since January. It was reported that the two companies have already came up with a draft concerning the terms that they have agreed upon. They are now just waiting for the approval of the Chinese government. If that’s all they’re waiting for, I’d say that the partnership is almost complete.
Another reason why Dongfeng needs Volvo is its shrinking sales in China. While the demand for commercial vehicles increased in the Asian country, Dongfeng’s sales has dropped considerably. Its competitors in contrast posted as much as 87 percent sales increase for the first six months of the year. With the infusion of Volvo’s prestige in the company, they may attract more customers.
Volvo is continually expanding its presence in the global market. Aside from the company’s working relationship with the Chinese automaker, Volvo is also in the middle of expanding their presence in Russia by putting up assembly facility in the country. At this rate, Volvo may soon be a strong contender to DaimlerChrysler (Mercedes-Benz) which is currently the largest commercial vehicle manufacturer in the world.
The Auto Channel reports that a source from the Chinese automaker was quoted saying “If nothing goes wrong, the two companies will officially start cooperation by next May.” And if you are like me who’s curious what kind of trucks these two automakers can come up with, then you should also hope that nothing really goes wrong.
The way I see it, both companies will be benefiting greatly from this partnership. Volvo will be having a piece of the very big pie that is the Chinese commercial vehicle market. Dongfeng, on the other hand, can benefit from Volvo’s expertise not only on the manufacturing of reliable components but also for their safety features. For years, Chinese made vehicles are being looked down in terms of their safety. In contrast, safety is what Volvo has been specializing on. The Swedish company has been making safety belts more durable than say a Saturn center shoulder belt.
The partnership between the two companies have been budding since January. It was reported that the two companies have already came up with a draft concerning the terms that they have agreed upon. They are now just waiting for the approval of the Chinese government. If that’s all they’re waiting for, I’d say that the partnership is almost complete.
Another reason why Dongfeng needs Volvo is its shrinking sales in China. While the demand for commercial vehicles increased in the Asian country, Dongfeng’s sales has dropped considerably. Its competitors in contrast posted as much as 87 percent sales increase for the first six months of the year. With the infusion of Volvo’s prestige in the company, they may attract more customers.
Volvo is continually expanding its presence in the global market. Aside from the company’s working relationship with the Chinese automaker, Volvo is also in the middle of expanding their presence in Russia by putting up assembly facility in the country. At this rate, Volvo may soon be a strong contender to DaimlerChrysler (Mercedes-Benz) which is currently the largest commercial vehicle manufacturer in the world.