Nov 30, 2020 04:21 PM

Swedish Truck-Maker Scania Drives Into China With Wholly Owned Venture

What’s New: Swedish truck maker Scania AB has launched a wholly owned venture to produce its trademark heavy trucks in China.

The company launched its China presence by buying a local vehicle-maker in the country’s Eastern Jiangsu province on Nov. 19, it disclosed at an event Saturday. Six days later, it changed the company’s name to include the Scania brand.

No figures were given for the size of the investment or when the company would start manufacturing and selling Scania-branded trucks.

Background: Scania is only the second foreign commercial vehicle-maker with a manufacturing operation in China. The first was South Korea’s Hyundai, which in January bought out its partners in its commercial vehicle-making joint venture in Sichuan province.

China previously only allowed foreign vehicle-makers to own up to 50% of their China operations, forcing them to find joint venture partners for the remaining stake. It relaxed that restriction this year, for the first time allowing wholly owned ventures like the ones from Scania and Hyundai.

Foreign companies had often complained that Beijing used the joint venture requirement to force the transfer of technology to their local partners — a central complaint that emerged during the trade war waged with China by U.S. President Donald Trump. Beijing has denied such allegations.

Related: Commercial Vehicle Sales Drive Recovery in China Auto Market

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

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