Volvo Truck Corp (VTC) said it has formed a joint venture with China National Heavy Truck Corp (CNHTC) to start building trucks in China by the end of 2003. Volvo, which entered the China market in 1991, said it sold more than 1,000 trucks in China in 2002 and expects the joint venture to boost sales above 10,000 units by 2010.
The 50-50 venture anticipates the total China market for trucks over 36,000-lb GVWR to be 50,000 units a year, growing to 100,000 annually over the next six to eight years.
According to Claes Claeson, VTC's director of media relations, trucks remain a critical core business area for Volvo, representing 67% of the company's revenues in 2002. Claeson said the joint venture is a continuation of the consolidation trend occurring in global truck manufacturing. As an example, he points to Western Europe, where six major truck OEMs remain today — down from 40 in 1965.