Swedish truck manufacturer Volvo has signed an agreement with Dongfeng Motor Co (DFG) to set up a joint venture in which it will have a 45% stake. After the deal, Volvo will become the world’s largest manufacturer of heavy-duty trucks. Dongfeng Commercial Vehicles (DFCV) will combine Dongfeng’s know-how and strong position in China with the technical expertise and international experience of Volvo, according to Volvo CEO Olof Persson. The deal still needs approval from the Chinese authorities and anti-trust bodies. Volvo expects all procedures to be completed within one year. Volvo, which also manufactures trucks in Ghent, will pay €670 million for its stake. Volvo is already the world’s third largest manufacturer of heavy-duty trucks. It sold 180,000 units in 2011. Dongfeng was the second largest in 2011, selling 186,000 heavy-duty trucks. About 142,000 of those were manufactured by the company which will become part of DFCV.