Volvo about to acquire truck manufacturer

Volvo Trucks is about to purchase Chinese truck manufacturer JMC Heavy Duty Vehicle. The takeover for the equivalent of 123 million US dollars still has to be approved by Chinese authorities, as the business portal Caixin reports. Volvo, a subsidiary of Chinese manufacturer Geely, would gain full control of JMC Heavy Duty Vehicle through the acquisition and would not have to enter into a joint venture. In 2020, the Chinese government issued new rules to remove the joint venture requirement in the production of commercial vehicles. The Swedish-Chinese company would thus also take over a truck factory located in Taiyuan in northern China. According to Caixin, the plant will produce 15,000 trucks per year for the Chinese market starting by the end of 2022. Due to the logistics boom in China, many truck manufacturers are considering production facilities in the People’s Republic, according to the portal. nib