OREANDA-NEWS. January 13, 2015. Dongfeng Motor Group Company Limited (DFG) has completed the equity transfer of 45% of Dongfeng Commercial Vehicle Co., Ltd for a total consideration of  RMB 5.51 billion.

As announced earlier, DFG aims to form a strategic alliance at the capital level with AB Volvo, world second largest commercial vehicle manufacturer, for the establishment and operation of Dongfeng Commercial Vehicle Co., Ltd. Both parties will closely work together to develop Dongfeng brand commercial vehicles into a world famous brand.

After Dongfeng Commercial Vehicle Co., Ltd being listed for a period of time on the the Shanghai United Assets and Equity Exchange (SUAEE), AB Volvo has acquired 45% of the equity interests in the Dongfeng Commercial Vehicle Co., Ltd. Currently,  necessary approval and registration processes of 45% equity interest have been completed.  Upon completion of the transaction, one of the world’s largest commercial vehicle alliance has officially established.

Dongfeng commercial vehicle business is the foundation of Dongfeng’s development. DFG is fully dedicated to developing its commercial vehicle business, with the mission of building a “ Chinese Dongfeng, Global Dongfeng”. The strategic alliance at the capital and business level will further facilitate DFG to leverage the global resources of both parties to speed up DFG’s going global process.

Through establishing the commercial vehicle alliance, both parties hope to achieve a win-win development, and more importantly, it will speed up the process for Dongfeng brand commercial vehicles to go global and further enhance its overall competitive edge.