Volvo to Sell Interest in Chinese Truck Venture

The Volvo Group and Chinese firms Sinotruk Ltd. and China National Heavy Duty Truck Group Corp. have signed an agreement under which Sinotruk will purchase all of Volvo’s equity interest in Jinan Huawo Truck Corp., Bloomberg reported.

Volvo currently holds a 50% equity interest in Jinan and the agreement is subject to approval by Chinese authorities. 

The partnership commenced in 2003, but the joint venture “has for various reasons not become the business success that both parties had expected,” Bloomberg reported via news wires.