Volvo Trucks Calls Off of heavy-duty truck manufacturing deal in China

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Updated On: 16-May-2023 04:59 AM

Volvo Trucks and Jiangling Motors will not proceed with the previously announced acquisition of JMC Heavy Duty Vehicle and its manufacturing facility in Taiyuan, Shanxi Province, China.

Volvo Trucks and Jiangling Motors will not proceed with the previously announced acquisition of JMC Heavy Duty Vehicle and its manufacturing facility in Taiyuan, Shanxi Province, China.

Volvo Trucks has cancelled its acquisition of China's Jiangling Motors Co. Ltd.'s heavy-duty truck manufacturing unit, less than two years after announcing the proposal.

Volvo Trucks and Jiangling Motors will not proceed with the previously announced acquisition of JMC Heavy Duty Vehicle and its manufacturing facility in Taiyuan, Shanxi Province, China.

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According to a Volvo statement, the two parties will not pursue the deal because the closing conditions have not been met. Truck exports to Chinese customers will continue from Volvo Trucks.

" Volvo Trucks has a long history of doing business successfully in China. We see enormous prospects in the Chinese market and will work hard to expand our footprint. Our long-term goal is to expand our business and continue delivering high-quality vehicles to clients in China in collaboration with our local dealer partners," said Roger Alm, President of Volvo Trucks.

Volvo Trucks announced the $125 million purchase in August 2021, saying it would acquire the Taiyuan facility, where it will produce the Volvo FH, FM, and FMX trucks for the local Chinese market. Production was set to begin in 2022, with the plant eventually producing 15,000 automobiles per year.

Volvo Trucks began operations in India in 1998. It is driving success in the Indian market for the past two decades with its high-technology creative goods and services solutions. Volvo Trucks in India is known for offering superior transportation solutions to our customers via the use of technologically advanced trucks supported by a highly qualified and committed team of specialists.