China's Dongfeng-Volvo JV headquarters may move
China's Dongfeng Commercial Vehicle Co. (DFCV), a medium and heavy-duty commercial vehicle business division under Dongfeng Motor Co., Ltd. (DFMCL), a joint venture between Nissan and Dongfeng Motor Corporation, is expected to be officially spun off from DFMCL and start operating directly under Dongfeng Motor Group Co., Ltd. (DFMG) on July 1 of this year.
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DFCV talked with Volvo in December last year concerning the establishment of a joint venture in 2012, 55 percent of which will be held by DFCV and 45 percent by Volvo. Nissan, the key third party to this cooperation, will divest itself of Dongfeng's medium and heavy-duty commercial vehicle business. In return, Dongfeng will support Renault and Infiniti production in China.
A principal at Dongfeng revealed that after the spin off, the administrative headquarters of DFCV may be moved to Hangzhou, capital of Zhejiang province, with the manufacturing headquarters remaining at DFCV's base in Shiyan. He said: "It may be something that Volvo will want, and both parties are considering it." Volvo also hopes that the JV will undertake some manufacturing work in Hangzhou.
