Volvo Trucks buys half of Dongfeng Commercial Vehicles

Volvo the automaker may have had some difficulty finding its footing over the past few years since leaving Ford ownership, but it's finding its way with an ambitious new product portfolio and new technologies funded by its new patrons at Geely. All the while, though, the Volvo truck company of which it was once part has been steadily growing. Today the group encompasses the former truck divisions of both Volvo, Nissan and Renault, as well as Mack trucks, Prevost and Nova buses and the Volvo Penta marine and industrial engines operation. And now it's adding one more company to its growing portfolio.

That would be Dongfeng Commercial Vehicles, the truck division of one of China's biggest automakers. The acquisition runs in the opposite direction of the group's former automobile division, which was acquired by rival Chinese automaker Geely in 2010. Volvo Cars was part of the Volvo Group until Ford bought it in 1999, holding the Swedish automaker under its umbrella for over a decade until disbanding the Premier Automotive Group that also encompassed Aston Martin, Jaguar, Land Rover and Lincoln.

Following the necessary approvals from the Chinese government, the Volvo Group purchased 45 percent of Dongfeng Commercial for 5.5 billion Chinese yuan, equivalent to $885 million at today's exchange rates. The Volvo Group also incorporates Indian truckmaker Eicher, Chinese construction equipment manufacturer SDLG and Japan's UD Trucks. Through UD (formerly Nissan's truck division), the Volvo Group already had a joint venture with its new Chinese partner called Dongfeng Nissan-Diesel Company, and Dongfeng is also sponsoring a boat in the Volvo Ocean Race, so you know the companies were already familiar with one another.