AB Volvo last week signed a non-binding memorandum of understanding with Deutz Ag to explore the potential to extend the long-term cooperation with a joint development of the next generation of medium-duty engines for off-road applications.
The memorandum of understanding also aims at analyzing the conditions for establishing a Deutz majority-owned joint-venture company in China for the production of medium-duty engines for off-road applications. The production company is intended to provide support for the Volvo Group’s anticipated growth in off-road applications in Asia.
Any implementation requires both companies to agree on the final terms and conditions in a binding contract.
Headquartered in Göteborg, Sweden, The Volvo Group is a leading manufacturer of trucks, buses and construction equipment, drive systems for marine and industrial applications and aerospace components.