BEIJING Jan 23 Chinese state-owned auto maker
Dongfeng Motor Group Co. is set to announce as early
as this weekend a strategic alliance with Swedish truck maker
Volvo AB, according to a Dongfeng official.
The official, who declined to be identified because the
information has not been publicly released, said Dongfeng may
gain access to Volvo technology, through the deal. He declined
to give further details.
Chinese media reports on Tuesday had said the deal is likely
to involve a joint venture to produce and market Volvo trucks in
Dongfeng is a major exporter of heavy trucks to emerging
markets, including Africa and South America, and the alliance
would help the company further expand its global reach, the
Volvo, the world's No.2 truck maker, said in December it
would cut back production in North America due to tough
Dongfeng will hold a media event in Beijing on Saturday to
announce the signing of a strategic alliance with one of the
world's leading commercial vehicle manufacturers, according to
the invitation to the event.
A spokesman for Dongfeng declined to give details.
(Editing by Jonathan Standing)