Volvo Partner Suspected of Corruption

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Goteborgs-Posten / November 2, 2015

The committee chairman of Volvo’s joint-venture in China, Dongfeng Commercial Vehicles (DFCV), in which Volvo's holds a 45 percent stake, has been arrested on corruption charges.

"We have taken note of the news in the Chinese media that the president of DFCV is under investigation by authorities. At this time, we don’t know more than what is being presented by the media. It is too early to draw any conclusions regarding the possible impact on our joint venture," says Volvo's press manager Kina Wileke.

Dongfeng Group owns a 55 percent stake in the DFCV truckmaking joint-venture, where Swedish truck and bus manufacturer Volvo holds a 45 percent stake.

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Facts:

Volvo completed its purchase of a 45 percent stake in Dongfeng Commercial Vehicles (DFCV) in January 2015, a deal that was announced two years prior. The shares cost 5.5 billion Chinese yuan (about 7 billion Krona).

Dongfeng Motor Group holds the remaining 55 percent stake.

DFCV has a leading position in the Chinese truck market, which in 2013 amounted to 774,000 heavy trucks.

The corruption suspect, Mr. Zhu Fushou, is one of four Chinese members of DFCV's Board of Directors, appointed by the Dongfeng Motor Group. Volvo has three board members.

http://www.gp.se/ekonomi/1.2883362-korruptionsutredning-i-volvo-partner