Saturday, January 26, 2013 4:10 am
Volvo truck to pair with China's Dongfeng
The Associated Press
Volvo CEO Olof Persson says the move to buy the stake in Dongfeng Commercial Vehicles was part of "a clear strategy" to become the world's largest maker of heavy-duty trucks.
He said Saturday completion is expected within a year, adding it will increase Volvo's net debt by approximately 6 billion kronor ($926 million).
Volvo was the world's third largest truck manufacturer in 2011, with 180,000 units sold, while Dongfeng was second with 186,000 vehicles sold, according to the Swedish group.
AB Volvo's third quarter profits plunged amid weak demand, especially in debt crisis plagued Europe.