Photo: Volvo Trucks
It is not only cars which bring in the big bucks for the large automakers, as most of them have some sort of commercial arm, which builds anything from vans to fully-fledged trucks. Volvo and Daimler are two examples which neatly fit the description, with the latter leading the former for the production of heavy trucks.
However, Volvo is looking to change that, and surpass Daimler. They plan to do this by expanding their truck-making operation to China, where they have agreed to buy a 45% stake in a joint venture with Dongfeng, worth some $900 million. It will handle the production of medium- and heavy-duty trucks, for the Asia region, where Volvo's presence is limited and their products aren`t very well-known.
The Chinese truck market is very large, and growing every year (not at the same rate as the passenger car market, though). Last year, some 636,000 heavy-duty trucks were sold in China, along with 290,000 medium-duty vehicles - the market is there and all Volvo has to do is wait for it to rebound and then tap into it.
This will not only bring them substantial profits, but it will also allow them to surpass Daimler, and become the world's number one manufacturer of heavy-duty trucks.
The Chinese truck market is very large, and growing every year (not at the same rate as the passenger car market, though). Last year, some 636,000 heavy-duty trucks were sold in China, along with 290,000 medium-duty vehicles - the market is there and all Volvo has to do is wait for it to rebound and then tap into it.
This will not only bring them substantial profits, but it will also allow them to surpass Daimler, and become the world's number one manufacturer of heavy-duty trucks.
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