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Volvo AB' suppliers and sub-contractors celebrate joint venture deal with Chinese company Dongfeng Motor Group

Sunday, 27 January 2013
Affiliate companies and subcontractors for the automotive industry in Sweden are throwing parties here and there celebrating and cheering for the deal Volvo entered with the Chinese company, Dongfeng Motor Group

"This means increased provision for Swedish subcontractors and thus more jobs," says Fredrik Sindahl, president of Automotive Suppliers, the trade association for the Scandinavian subcontractors.

The deal, which is dependent on the on approval from various competition authorities and is expected to take twelve months to complete, means that AB will become the world's largest manufacturer of heavy trucks.

"This transaction is a great opportunity for us, and gives us a strong position in the world's largest truck market. The Chinese market is as large as the U.S. and Europe combined," volvo said and Frederick Sindahl is convinced that the Volvo deal is the great way to go.

"While we have not seen the results of the transaction between Volvo Cars and Geely, due to the European downturn, I have only positive things to say about this, "says Fredrik Sindahl.

The various unions in Volvo are in favours of the deal. "This means that one get more access to the world's largest truck market than had previously been the case," said Mikael Sallstrom, chairman of the IF Metall Club at Volvo in Gothenburg, to swedish news agency, TT.

Instead of fears that more Swedish jobs could be disappearing to China, Fredrik Sindahl feels that the deal will lead to "increased demand and create more jobs in Sweden. "Nah, it's quite the opposite. It requires a lot of expertise from technicians and where Volvo has a lot of knowledge that can generate jobs here in Sweden," said Sallstrom.
by Scancomark.com Team

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