Volvo sets up truck venture

Volvo of Sweden has
decided to set up a joint venture with the China National Heavy Truck Corp. The venture will
produce Volvo trucks at the corporation's facility in Jinan. Shandong province, starting with
2,000 units a year and growing to 10,000 by 2010. Initially, trucks will be sent to China in kit
form for assembly hut the aim is to increase the percentage of components produced
locally.
The market for heavy trucks is around 50,000 a year, hut is expected to double in
the next six to seven years. Volvo started to import trucks three years ago and has seen its
sales rise from 100 to around 1,000 last year.