Leif Johansson, Volvo Group's global CEO, revealed at the company’s recent media meeting that after the suspension of the joint venture with Sinotruck, Volvo did not plan to seek a new heavy truck business partner in China for the time being. At the same time, he said that during the crisis period of the past two years, the development of the Chinese business has played a very important stabilizing role for the Volvo Group's global business. The Chinese market has become one of the core markets for the Group's development. The future Volvo Group will Continue to increase investment in the Chinese market.
According to reports, Volvo Group is the world's second-largest manufacturer of heavy-duty trucks and buses, and the third largest manufacturer of construction equipment. The Group previously sold the Volvo sedan business to the Ford Group and was acquired by the Chinese mainland automaker Geely Group at the end of March. It has caused widespread concern in the industry.
In 2003, Volvo Group and China National Heavy Duty Truck Group established a truck joint venture Jinan Huawo, the joint venture period is 30 years, but in 2009, the Volvo Group announced the withdrawal of capital, ending the cooperation with the heavy truck. Leif Johansen said that "at present, we have no plans to find other heavy truck partners." He said that Volvo currently has two strong partners in Dongfeng and Nissan Diesel in China. They are already in the Chinese market for Volvo. The development laid a very good foundation, so Volvo is currently not looking for other partners. However, in the product area, Volvo intends to increase the launch of new products for heavy trucks in China, especially in Volvo's superior technology fields such as fuel-efficient and energy-efficient engines.
According to a quarterly report recently released by the company, Volvo Group's operating income for the first quarter of 2010 was 58.6 billion kronor, an increase of 4.4% over the same period in 2009. Among them, a total operating profit of 2.8 billion kroner was realized, and the company's operations returned to the profit channel. In this regard, Reeve Jonsson analysis, the reasons for the Group's performance in the first quarter summed up in two main points: First, the previous cost control measures have played a real effect. Secondly, the rapid rebound of the Asian market, especially the Chinese market, has a powerful effect on the recovery of the Group's global business. First-quarter data shows that the growth of Volvo's European business is about 10%, that of the United States is about 15%, while its growth in China is as high as 25% to 30%.
In this regard, Leif Johansen said that the Chinese market has now become one of the core markets for the development of the Group. In the future, the Volvo Group will continue to increase its investment in various aspects of development. Strategically speaking, in the future, R&D will continue to increase localized R&D; in addition, the construction of China's market infrastructure is in full swing, which undoubtedly provides a broad space for progress in the development of construction equipment. In the future, Volvo will continue to use new technologies to meet the needs of China's domestic market, and will also launch products for Asian customers. The Volvo Group has already established a China R&D center in Jinan that is backed by global R&D efforts to ensure that it can better meet the various business needs of local Chinese customers.
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