Through UD Trucks, the Volvo Group has a joint venture for trucks together with Dongfeng of China. A fact unknown to many. The joint venture, DND, manufactures heavy-duty UD trucks in a factory in Hangzhou in Southern China. DND was included in the acquistion of UD Trucks in 2007 and gave the Group access to domestic production in China.
A number of European manufacturers are trying to get into China, and some have shares in domestic companies producing Chinese brands, but the Volvo Group is the only Western manufacturer making trucks under its own brand, UD, in the country.
China is the world’s largest truck market with registrations of 899,000 heavy-duty trucks in 2011. DND had a volume of 900 trucks in 2011, and the Volvo Group is together with its joint venture partner examining different possibilities to expand the cooperation in order to grow the sales volumes within the DND framework. In addition to the UD trucks being manufactured by DND, the Group also sells some 1,000 Volvo trucks annually. These trucks are built in Europe and shipped to China. With those volumes, Volvo has a strong position in the European segment of the market.