Volvo trucks expands into China

Volvo Trucks has announced that it has agreed to acquire JMC Heavy Duty Vehicle Co., Ltd., a subsidiary of Jiangling Motors Co., Ltd., which includes a manufacturing site in Taiyuan, Shanxi province, China,

The deal is said to be worth around $A174 million (SEK 1.1 billion).

Volvo says the objective is to start production of the new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks in Taiyuan for local customers in China from the end of 2022.

Volvo Trucks has been active in the Chinese market since 1934. However, over the past couple of years, strong growth has led to a surge in the sales of Volvo trucks in that country and in 2020, more than 4500 heavy-duty Volvo trucks were imported and delivered to customers in China.

The operations in Taiyuan will include stamping, welding, manufacturing of cabs, painting and the final assembly of Volvo trucks.

Volvo says that within a few years, the plant will have the capacity to produce 15,000 Volvo trucks per year with the potential to increase the capacity further.

This would certainly mean that markets other than the Chinese domestic market will be served by the Volvo plant in Taiyuan.

“We are committed to shaping the future of sustainable transport solutions. With our long-standing presence in China, we are growing our sales, and we are expanding our strong network of sales and service points together with our private dealer partners,” said Roger Alm, President Volvo Trucks.

“Over the last couple of years, we have seen a fast development of the logistics markets and an increasing demand for our premium trucks and services. To meet the demand from Chinese transport operators, the time is right for us to establish a regional value chain with our own heavy-duty truck manufacturing in China,” Mr Alm added.