Volvo to begin production in China

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GOTEBORG, Sweden – Volvo has inked a deal with China National Heavy Truck Corporation (CNHTC) which will see Volvo trucks produced there by the end of the year. The joint venture between Volvo and CNHTC will form Jinan Huawo Truck Co. and production will take place at CNHTC’s facilities in Jinan. Under the agreement, 2,000 trucks will initially be produced per year, with that number expected to rise to 10,000 trucks per year by 2010.

“China is a key market for the Volvo Group and we have been working systematically to establish all our business areas in China,” said Leif Johansson, president and CEO of the Volvo Group. The demand for heavy-duty trucks in China is expected to increase from 50,000 per year (currently) to about 80-100,000 in six or seven years.

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