Volvo to Invest in Truck Venture With China’s Dongfeng Motor

Volvo AB agreed to pay 5.6 billion yuan ($890 million) for a minority stake in the commercial vehicle unit of China’s Dongfeng Motor Group Co., a transaction the Swedish company said will make it the world largest maker of heavy-duty trucks.

Volvo, the world’s second-biggest truck manufacturer, will hold a 45 percent share of the unit, which will make and sell Dongfeng-brand trucks, buses and so-called special-purpose vehicles, the Gothenburg, Sweden-based company said in a statement before a press conference in Beijing today.