Volvo seeks more cooperation with Chinese partners

China is going to remove restrictions regarding foreign ownership of commercial vehicle companies, while Sweden's Volvo seeks more cooperation with Chinese partners.

On the sidelines of China Development Forum (CDF), CGTN's Cheng Lei spoke to Martin Lundstedt, the president and CEO of the Volvo Group.

Talking about company's plans for maintaining a good performance in 2019, Lundstedt said that 2018 was a very good year with strong market across the globe. But the logistics and transport sector will continue to develop, at least when it comes to sustainable performance.

"Consumers and leaders both are asking for more sustainable, green, ecological solutions. So, I think that is the primary focus for us to make sure that we are driving a strong, sustainable transport and infrastructure agenda," said Lundstedt.

Volvo is one of the world's biggest truck makers and China is the world's largest truck market. Volvo has two joint ventures in China, Lingong and Dongfeng.

In response to the new policy, Lundstedt commented that a win-win situation is important.

"So far, we feel both with the Shangdong Lingong on the construction equipment side, and on the cooperation with Dongfeng in commercial vehicles, that has been the case, meaning that we are contributing from both sides and to actually bring in even stronger competitive agenda," he said.

As for e-commerce business, Lundstedt said it supports the demand side and drives a sustainable agenda and equality in the country.

"That means that there are not only in China but also globally. And that means that the e-commerce companies are driving further efficiency and more sustainability into the logistical system."

While speaking about the prospects of China's truck sales in 2019, which maintained a growing trend last year, Lundstedt said China will see a strong year to come because there is a shift in the market when it comes to how consumption is created.

"We have seen that in the country that drives into demand for professional transportation of goods, and also people. Those are good signs for the future, when it comes to commercial vehicles."

The group leader also shared his views on China's Foreign Investment Law.

"What we as management are very happy about is that when we are having a dialogue with all our major and minor shareholders, we are fortunate to have a very big share of the base."

"We feel like we have very strong support for our strategy regarding sustainable and efficient transport and infrastructure. We feel that they believe in how the companies operate, and in our people. And that we are very proud about," he added.

(CGTN)