Volvo Trucks calls off deal in China
By Mike Brezonick12 May 2023
Less than two years after it announced a plan to acquire the heavy-duty truck manufacturing operation of China’s Jiangling Motors Co. Ltd., Volvo Trucks has called the deal off.
The company announced that it will not pursue the previously announced transaction involving the acquisition of JMC Heavy Duty Vehicle Co., Ltd., and its manufacturing site in Taiyuan, Shanxi province, China.
Volvo Trucks said the two parties will not pursue the transaction due to that the conditions for closing the transaction were not met. Volvo Trucks will continue to export trucks to customers in China.
“Volvo Trucks has a long history of successful business activities in China,” said Roger Alm, president Volvo Trucks. “We have great opportunities on the Chinese market and we will continue the efforts to develop our presence.
“Our long-term ambition is to grow our business and continue delivering our high-quality trucks to customers in China, together with our dealer partners in the country.”
When the $125 million deal was first announced in August of 2021, Volvo Trucks said it would acquire the Taiyuan facility where it would product the Volvo FH, FM, and FMX trucks for the local Chinese market. Production was to begin in 2022 and the plant was expected to eventually produce 15,000 vehicles per year from the site.