Volvo Trucks drops the acquisition plan of truck manufacturing operation in China
The parties were not in line with the final transaction that leads to discontinuation of acquisition. Volvo Trucks has announced to continue exporting trucks to customers in China.
Sweden/China- Volvo Trucks of Sweden, a subsidiary of Volvo Group and Jiangling Motors Co., Ltd of China will not pursue the previously announced transaction involving the acquisition of JMC Heavy Duty Vehicle Co., Ltd, and its manufacturing site in Taiyuan, Shanxi province, China.
In Aug 2021, there been an understanding between the parties for the acquisition with an amount of RMB 0.8 billion (approximately SEK 1.1 billion). The objective was to produce new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks in Taiyuan for customers in China from the end of 2022.
Roger Alm, President of Volvo Trucks said "Volvo Trucks has a long history of successful business activities in China. We have great opportunities on the Chinese market and we will continue the efforts to develop our presence. Our long-term ambition is to grow our business and continue delivering our high-quality trucks to customers in China, together with our dealer partners in the country,"
