BEIJING – Nissan Motor Co. said it will transfer its medium and heavy commercial vehicle business to its Chinese partner, Dongfeng Motor Group Co., to concentrate on passenger and light commercial vehicles.
Nissan did not disclose the sale price in the Saturday disclosure.
The medium and heavy commercial vehicle business is run by Dongfeng Motor Co., a Chinese joint venture established by Nissan and Dongfeng Motor Group.
Dongfeng Motor Group announced on the same day that it will establish a joint venture in China with major Swedish commercial vehicle maker AB Volvo. The new firm will take over the major part of the commercial vehicle operation.
Volvo will acquire a 45 percent stake in the new firm for 5.6 billion yuan, or about ¥80 billion, while Dongfeng Motor Group will take the remaining 55 percent, local media reports said.
Nissan itself has already withdrawn from the medium and heavy commercial vehicle market in Japan.
Dongfeng Motor Group, for its part, has acquired knowhow in producing commercial vehicles via the joint venture with Nissan. It has been planning to expand its operations abroad by purchasing part of the joint venture and teaming up with another major automaker.
The company’s ambitions echo those of Volvo and Nissan, since the Swedish automaker hopes to build a strong foothold in China, the world’s largest auto market.