Date:2011-04-28
Volvo announced that its subsidiary Volvo Bus had reached an agreement with Shanghai Automobile Industry Corporation (SAIC) to set up a joint venture which would be engaged in developing transmission systems for new energy buses such as hybrid and electric buses.
SAIC and Volvo will hold 60% and 40% of the joint venture's equity respectively. Volvo will invest RMB 40 million, while SAIC will invest RMB 60 million. This joint venture will be named Shanghai Green Bus Drive System Co. and headquartered in Shanghai, focusing on assembling new energy transmission systems, vehicle integration, sample vehicle manufacturing, and new energy transmission system testing.
Volvo currently has two joint ventures in China which produce and sell buses and coaches under the brand of Sunwin and Silver. Shanghai Sunwin Bus Corporation is also a joint venture by Volvo and SAIC. Headquartered in Shanghai, Sunwin Bus is taking the lead in Shanghai's public transportation.
Unlike the other two joint ventures of Volvo, the new joint venture will focus on new energy. Statistics show that Volvo has been seeking solutions for realizing efficient transportation, energy conservation and emission reduction since the 1980s and it has chosen to develop hybrid commercial vehicles. In March 2006, Volvo launched its first demonstration heavy-duty hybrid vehicle. In 2008, the company displayed its coaches and trucks which adopted the company's fourth generation hybrid power solutions that could save fuel by 30%.
Since 2011, SAIC has intensified its efforts to develop commercial vehicles. At the beginning of this year, SAIC built its commercial vehicle brand MAXUS by purchasing the intellectual property right of MAXUS together with its technology platform. The cooperation with Volvo is another important step by SAIC to perfect its business layout for commercial vehicles.
Based in Gothenburg, Sweden, Volvo is the world's second largest heavy-duty truck and large coach manufacturer with production bases in 19 countries. After selling its car businesses to Ford Motor in 1999, Volvo effectively integrated its internal resources and has concentrated on commercial vehicles ever since. In addition to maintaining growth in its own businesses, Volvo has carried out a series of important purchases over the past decade, including the purchase of Renault Trucks, Mack Trucks, and Nissan Diesel which is named UD Trucks now.
