GOTHENBURG, Sweden — AB Volvo has announced it has entered into a joint venture with Indian vehicle manufacturer Eicher Motors.
Under the deal, Volvo will invest about $312 million. The joint venture will include Eicher Motors’ truck and bus operations and Volvo’s Indian truck sales operations and service network for trucks and buses, according to the Associated Press.
The new business will be called VE Commercial Vehicles Ltd. Eicher boasted sales of $559 million last fiscal year with operating profit of $22.9 million. Volvo will own 50% of VE Commercial Vehicles. The deal should be concluded in the third quarter.
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