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Dongfeng and Volvo are about to end the eight-year long-distance running. A few days ago, Sohu Automobile was informed by insiders of Dongfeng Motor that the Dongfeng Volvo JV, which had been submitted to the relevant state departments for approval, was approved as soon as possible or in October. This move also shows that Dongfeng Motor’s large-scale collaborative strategy has accelerated.
The above sources stated that Dongfeng Limited has been operating the spin-off plan since November 2011. The way is that Dongfeng Motor will invest in the joint venture with Volvo through the repurchase of its commercial vehicle assets. "The repurchased assets were valued at about 5.3 billion, and after the premium was 12.5 billion. Both parties will inject 6.5 billion for the joint venture company according to the 55:45 ratio."
As the crystallization of the joint venture between Dongfeng and Nissan, Dongfeng Limited was established in 2003. It consists of five core segments including Dongfeng Nissan Passenger Vehicles, Zhengzhou Nissan, Dongfeng Commercial Vehicles, Dongfeng Components, and Dongfeng Equipment.
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