Two years ago, Volvo's initial focus in its joint venture with Dongfeng was to boost sales of both Volvo and Renault brands. However, after two years of negotiations, the joint venture unexpectedly shifted its emphasis to Dongfeng's brand.Compared to Volvo Group's initial willingness to engage with Dongfeng, the direction of their joint venture has undergone a complete 360-degree shift.A subtle shift in strategy: 'The collaboration between the two parties primarily focuses on building and enhancing the Dongfeng brand.' On May 28, during the launch of Dongfeng Motor Corporation's 2008-2012 mid-term plan, General Manager Xu Ping made this thought-provoking official statement.Compared to Volvo Group's stance two years ago, this clearly demonstrates that Dongfeng has taken the initiative in joint venture negotiations.Since 2006, Volvo Group, the world's largest commercial vehicle manufacturer, has proactively engaged with Dongfeng Motor Corporation.At that time, Dongfeng's existing medium and heavy-duty trucks and its brand portfolio were not part of Volvo's strategic plans.Xu Ping stated that Dongfeng and Volvo are currently in talks regarding a potential collaboration, which will not affect the Dongfeng brand. The two parties are currently discussing synergistic effects.He did not disclose the specific meaning of "synergistic effect".However, market analysts point out that the term 'synergistic effect' likely refers to the differentiated competition between Volvo and Dongfeng brands.In other words, the Dongfeng brand primarily targets the mid-to-low-end heavy-duty commercial vehicle market, while the Volvo brand focuses on the same segment.At current market prices, the unit price of heavy trucks is approximately 200,000 yuan higher than that of mid-range models.Last year, Dongfeng sold approximately 200,000 medium and heavy-duty commercial vehicles, while Volvo Group's sales volume in China was only around 1,000 units.According to preliminary information obtained by reporters, the joint venture between Dongfeng and Volvo Group is expected to be established within this year, with both parties forming the partnership based on Dongfeng Commercial Vehicle Co., Ltd.The joint venture's production base remains in Shiyan, while a new final assembly plant will be established in Wuhan.The joint venture will also utilize Volvo's technology to produce an entirely new truck series.Dongfeng Limited Commercial Vehicle Company is a subsidiary of Dongfeng Limited, with Dongfeng and Nissan each holding a 50% stake.Under the agreement, Dongfeng Motor Corporation Limited will divest its Dongfeng Commercial Vehicle business, while Volvo will acquire all Nissan's equity stakes in Dongfeng Commercial Vehicle, transforming the company into a joint venture between Dongfeng and Volvo.For over a year, Nissan has been actively involved in the negotiations for this project.The project has been submitted to the National Development and Reform Commission (NDRC) and the Ministry of Commerce, and is currently awaiting approval.On that day, Xu Ping told reporters while leaving the venue that Dongfeng and Volvo would not collaborate within Dongfeng Limited's framework, but would work independently.The content of this sentence subtly aligns with the joint venture model.On January 22 last year, Dongfeng Group, a Hong Kong-listed company under Dongfeng Motor Corporation, announced: "Dongfeng, Nissan, and Volvo Group are currently negotiating a collaborative production vehicle project between Volvo and Dongfeng, with a preliminary framework agreement already reached." The statement noted that these tripartite discussions may lead Dongfeng Motor Co., Ltd. to focus on passenger vehicles and light commercial vehicles, while Volvo is expected to enter Dongfeng's heavy and medium commercial vehicle as well as engine business segments.According to reports, following the announcement, feasibility studies for the joint venture project were promptly initiated. Approximately one year later, the studies concluded, but the feasibility report was never made public.Lin Muhong, an auto analyst at Industrial Securities, noted that Dongfeng had previously avoided mentioning Volvo to prevent concerns about potential competition. The company's recent high-profile statement indicates the partnership is now virtually finalized, with the signing date likely approaching.On Tuesday, Jiang Lan, vice president of Volvo China Investment Company, said in an exclusive interview with reporters that Volvo indeed hopes to expand its market share in China. There are many possibilities for cooperation talks with Dongfeng, but no conclusion has been reached yet.