Xiwo, Huawo, Shenwo, Volvo seems to have a good layout in China, but unfortunately, these numerous joint venture projects did not give Volvo deserved profits, but instead become a headache for Volvo.
Due to too many projects in China, and for Volvo, these projects are almost entirely tasteless. Therefore, Volvo would like to launch a full-scale cooperation with Dongfeng to break its embarrassing situation in the Chinese market and resolve joint venture issues. However, Volvo has no clear plan for how to break through the restrictions of China's auto industry policy. Volvo, which already has three joint ventures in China, will, if coupled with the joint venture with Dongfeng, greatly break the restrictions that foreign auto companies cannot have more than two joint venture partners in China.
This is doomed to the joint venture negotiation process between Volvo and Dongfeng is a marathon-like negotiation, disregarding the differences between the two sides in terms of equity, product input, and site selection. It is simply how to break through the limits of auto industry policy. Volvo takes a lot of work.
As a result, although the joint venture between Volvo and Dongfeng was highly regarded by the major media throughout 2008, it was reported during the period that the joint venture agreement between the two parties will be signed by the Wuhan Central Expo in 2008 as “conclusive newsâ€. However, the final result cannot be achieved. In the eyes of people in the industry, this is not surprising.
Prior to this, Volvo made adjustments to its production in Europe and North America, and measures for layoffs and production cuts were implemented in succession. Volvo President Leif Johnson said that Volvo needs to control investment and guarantee cash flow, and new investment will be controlled under the current situation. This has in fact, to a certain extent, declared that the joint venture between Volvo and Dongfeng has been stranded indefinitely.
At the same time, this also means that Volvo's new efforts in the Chinese market have come to an end. However, “intentional planting of flowers and flowers, and unintentional fruiting,†Volvo’s seemingly inextricable knot in the Chinese market has been frustrated by a new joint venture.
Earlier, China Sinotruk reached a joint venture agreement with Man Corporation. According to the agreement between the parties, China National Heavy Duty Truck will receive from China, including the complete TGA trucks, D08, D20, and D26 that meet Euro III, Euro IV, and Euro V emissions standards. Engine and related parts technology.
This means that Volvo, which is a joint venture between Volvo and CNHTC, may be officially abandoned by Sinotruk. For this rumors, a core person of Sinotruk once told the media, “Although I was also a related news from the media, I personally believe that the Huawo project has no meaning to continue.†For Volvo, although slightly embarrassing, the real meaning is more obvious. Correspondingly, because the AVIC Group is also integrating its automotive industry, the Xiwo project, which has been obscure, may also fail.
In this way, in addition to the Shenwo project, the two issues of Huawo and Xiwo may be resolved, which is undoubtedly an accelerator for the already stranded Volvo joint venture project with Dongfeng. In fact, Volvo also left a hand. Prior to the suspension of the joint venture with Dongfeng, Volvo, which owns 100% of Nissan Diesel, actually maintained its cooperation with Dongfeng in Dongfeng Nissan Diesel, which also laid the groundwork for the resumption of the joint venture process at any time.
In addition, the face of heavy trucks, FAW Jiefang and Beiqi Futian in the domestic commercial vehicle sector aggressive situation, the Dongfeng at this time did not reject the reason for Volvo. Both are interesting. For Volvo, this is a great opportunity.
View related topics: Dongfeng, Volvo wants to cooperate with commercial vehicle business
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