Man and Volvo selected one of its Sinotruk partners to surface gradually
At the end of 2008, a joint statement released by China National Heavy Duty Truck (Hong Kong) Co., Ltd. caught the attention of the media. According to the announcement, "The company is in discussions with an independent third party regarding potential long-term strategic cooperation. Both sides are exploring the scope and form of such collaboration." This vague yet intriguing statement sparked widespread speculation about who might be on the other end of the conversation.
During this period, reports surfaced suggesting that Germany might be the partner for SINOCHEM, but no official confirmation had come from CNHTC. Recently, a source close to the company revealed that the potential partner could be Volvo. The question now is: which company will capture CNHTC’s interest—Volvo or German MAN?
Volvo's Stance on Cooperation
Recently, rumors began circulating that Volvo was considering resuming its partnership with Sinotruk. However, Jiang Wei, Vice President of Volvo (China) Investment Co., Ltd., denied these claims. She confirmed that no formal cooperation existed between Volvo and CNHTC at the time. Instead, Volvo was focusing on expanding its collaboration with SINOCHEM.
Jiang also highlighted that heavy trucks were not a core part of Volvo’s business in China. Rather, construction machinery accounted for 60% to 70% of their operations, with plans to increase this share in 2009. Passenger cars, including two joint ventures—Xiwo and Shenwo—made up around 20%, while truck projects represented less than 10%.
Despite the lack of direct cooperation, some analysts believe that deep collaboration between Volvo and CNHTC is still possible. Although the 30-year joint venture agreement had not been finalized, the possibility of Volvo not taking over Dongfeng remained high. Additionally, the existing joint venture, Waldorf Trucks, was struggling, but Volvo couldn’t easily exit due to contractual obligations.
Meanwhile, the “Volvo-Dongfeng†deal had faded from the spotlight. In early 2007, Volvo signed a non-binding framework agreement with Dongfeng Group, Nissan Motors, and Dongfeng Motor Co., aiming to invest in Dongfeng’s medium and heavy commercial vehicle and engine business. While the deal was seen as a game-changer for the global truck market, it never materialized due to ambiguous responses from the parties involved.
MAN’s Possible Role
As the search for a strategic partner continued, attention turned to Germany’s MAN. Earlier reports suggested that MAN had denied any cooperation with CNHTC, but insiders indicated that the deal was nearly finalized. The partnership was expected to take the form of capital collaboration, potentially involving licensing agreements or equity participation.
According to one insider, capital-based cooperation would allow both parties to align more closely than technical partnerships alone. It was also noted that Germany had recently stepped back from Yutong’s joint venture, Lionbus, signaling a shift in strategy.
Guo Huanan, Director of the Propaganda Department at Sinotruk Group, stated that while no official announcement had been made, CNHTC remained cautious in selecting partners. They prioritized shared development goals and technological capabilities. With the acquisition of Big Gear, CNHTC had strengthened its transmission industry chain, and future partners would need to fill similar gaps in its technology base.
Germany’s recent M&A activities have not always gone smoothly. Despite acquiring Scania in 2006, the deal ended up benefiting third parties. However, MAN’s acquisition of Volkswagen’s Brazilian commercial vehicle division in 2009 was seen as a minor move that didn’t significantly impact public stakeholders.
In 2008, MAN’s CEO emphasized the company’s focus on emerging markets, particularly China. Therefore, forming a strong local partnership was a logical next step.
Considering all these factors, the “independent third party†mentioned in CNHTC’s announcement likely refers to German MAN. As the Chinese heavy truck market continues to grow, the partnership between CNHTC and MAN could reshape the competitive landscape in the region.
Pipe Chamfering Machine,Pipe Tube Chamfering Machine,Pipe Chamfer Machine,Tube Shaping Machine
Zhangjiagang heshun machinery manufacturer co.,ltd. , https://www.hsformer.com