Volvo Trucks acquires Jiangling Heavy Duty Truck to produce heavy-duty trucks in China

Bitauto News? On August 23, 2021, Volvo Trucks and Jiangling Motors Co., Ltd. (JMC for short) officially signed an agreement through an online ceremony to acquire Jiangling Heavy Duty Truck Co., Ltd. (JMC for short) ) and its production base in Taiyuan. By acquiring Jiangling Heavy Duty Truck, which is 100% controlled by Jiangling Motors, Volvo Trucks will establish a wholly-owned Volvo Trucks production base in China to better serve China, the world's largest truck market. Volvo Trucks aims to start producing Volvo FM, FH and FMX series heavy-duty trucks for Chinese customers in Taiyuan from the end of 2022.

It is understood that the new factory covers a total area of ??523,000 square meters and is located in the Comprehensive Transformation Reform Demonstration Zone of Shanxi Province. The factory includes a full range of processes such as stamping, welding, cab manufacturing, painting and final assembly. The factory will adopt Volvo Trucks' global production system and operate in accordance with Volvo Trucks' high standards. Products, quality and production processes all maintain the same high standards as Volvo Trucks' other plants around the world.

Volvo Trucks’ central procurement and technology development department will equip the local team in Taiyuan with strong supply chain management and R&D capabilities. This acquisition and the upcoming localized production will also provide opportunities and possibilities for Volvo Trucks China and its supplier partners to achieve localized procurement. Relying on the increasingly perfect supply chain in China, the localization of many parts will be possible.

By establishing a new production base in China, Volvo Trucks will further shorten the cycle from customer order to delivery and improve its ability to provide customers with customized products and services. Through its continuously improving dealer network, Volvo Trucks China is committed to shortening the service radius of national logistics hubs to one hour and the service radius of regional logistics hubs to two hours.

The transaction between Volvo Trucks and Jiangling Motors is subject to approval by relevant regulatory agencies. Both parties will initiate the corresponding approval process.