USA - Ford starts production of the F-650 and F-750 trucks in the US, after moving them from Mexico.

• Ford kicks off production of 2016 F-650/F-750 for the first time in the United States; medium-duty truck lineup – previously assembled in Mexico – now built at Ohio Assembly Plant
• All-new F-650/F-750 medium-duty truck production shift to Ford’s facility in Avon Lake, Ohio, helps to secure more than 1,000 UAW hourly jobs and $168 million U.S. plant investment                 
• 2016 Ford F-650/F-750 trucks, available this summer, deliver commercial-grade quality, capability and convenience, and feature segment-exclusive Ford diesel and gasoline engines, delivering strong performance at an affordable price

All-new Ford F-650/F-750 medium-duty trucks roll off the line today for the first time in the United States. Production of the trucks at Ohio Assembly Plant, previously built in Mexico, helps secure more than 1,000 hourly UAW jobs and a $168 million plant investment in the United States.

2016 F-650/F-750 trucks, the toughest, smartest, best-value medium-duty trucks ever, anchor Ford’s commercial vehicle lineup – America’s best-selling commercial trucks for 30 straight years. Ford is the only truck manufacturer that provides vocational customers an unmatched one-stop shop to meet their needs – from the Class 1 Transit Connect cargo van to the Class 7 F-750 tractor rig.

“Our investment in Ohio Assembly Plant reinforces our commitment to building vehicles in America and to delivering best-in-class commercial trucks,” said Joe Hinrichs, Ford president, The Americas. “Working with our partners in the UAW, we found a way to make the costs competitive enough to bring production of a whole new generation of work trucks to Ohio.”

Offered in Regular Cab, SuperCab and Crew Cab body styles and in straight-frame, dock-height and an all-new dedicated tractor model for heavy towing applications, the 2016 F-650/F-750 line features a bold new look inside and out.

Ford is the only medium-duty truck manufacturer that designs and builds its own diesel engine and transmission combination – ensuring the powertrain will work seamlessly with all chassis components and vehicle calibrations.

Along with its 6.7-liter Power Stroke^® V8 diesel engine option, Ford remains the only automaker to offer a gasoline-powered engine in the medium-duty truck segment. 

The 6.8-liter V10 with 320 horsepower and 460 lb.-ft. of torque now will be available for both F-650 and F-750 models with the heavy-duty TorqShift six-speed automatic transmission. The 6.8-liter can be factory-prepped for converting to compressed natural gas or liquid propane gas as cost-effective alternatives to gasoline.

Ohio Assembly Plant investment

In 2014, Ford announced a $168 million investment to shift production of F-650 and F-750 from Mexico to Ohio Assembly Plant, in addition to adding new body shop equipment and other tooling needed to produce the medium-duty vehicles. 

The production shift from Mexico is part of the collective bargaining agreement Ford and the United Auto Workers negotiated in 2011.

"Through collective bargaining, we were able to secure production of the Ford F-650/F-750 to Ohio Assembly Plant,” said Jimmy Settles, UAW vice president and director, National Ford Department. 

“Building these world-class vehicles in America helps secure jobs for more than 1,000 UAW members and provides economic growth for the Avon Lake community. Strengthening the economy through job creation continues our efforts to rebuild the American middle-class and communities all across this nation.”

Opened in 1974, Ohio Assembly Plant employs nearly 1,400 people and is one of the largest employers in Lorain County. In addition to now producing all Ford F-650 and F-750 models and configurations, the plant also produces Ford E-Series cutaway vans and stripped chassis.

Toughest, smartest, best-value Ford medium-duty truck ever

2016 Ford F-650/F-750 trucks are the toughest, smartest, best-value Ford medium-duty trucks ever – providing the ideal combination of value, capability and upfit readiness in the segment.

These attributes underscore the F-650/F-750’s position as the future of medium-duty trucks:

• Toughest: Fully designed and developed by Ford truck engineers in Dearborn, Mich.; robot-tested on taxing durability courses; 500,000-plus miles of harsh dynamometer engine testing at extreme power levels and temperatures; Ford-built in the U.S.
• Smartest: All-new upfit-friendly chassis developed in cooperation with leading industry body makers; clean chassis capable of accommodating vocational bodies with little to no modification; all-new dedicated tractor model for heavy towing
• Best value: Choice of segment-exclusive 6.8-liter V10 gas engine or 6.7-liter Power Stroke V8 diesel – both backed by Ford’s heavy-duty TorqShift six-speed automatic transmission enhanced for medium-duty use with great power, performance and fuel economy; includes unsurpassed five-year/250,000-mile warranty and national network of Ford service centers

CHINA - Volvo buys 45% of Dongfeng Commecial Vehicles, on its way to become the biggest truck maker.

AB Volvo has completed the acquisition of 45% of the Chinese automotive manufacturer, Dongfeng Commercial Vehicles Co., Ltd. The purchase consideration amounted to RMB 5.5 billion.

As announced earlier, AB Volvo signed an agreement in January 2013 with the Chinese automotive manufacturer, Dongfeng Motor Group Company Limited (DFG), to acquire 45% of a subsidiary of DFG, Dongfeng Commercial Vehicles Co., Ltd (DFCV). DFCV includes most of Dongfeng’s operations in heavy-duty and medium-duty commercial vehicles.

To implement the transaction, a number of conditions had to be fulfilled, including approval from the Chinese competition authority and other relevant authorities. All approvals have been received.

This transaction will significantly strengthen the Volvo Group’s position in medium-duty trucks while the Group will become one of the world’s largest manufacturers of both medium-duty and heavy-duty trucks.

“This strategic alliance is a real milestone and entails a fundamental change in the Volvo Group’s opportunities in the Chinese truck market, which is the largest in the world,” says Volvo’s President and CEO, Olof Persson. “At the same time, it will provide us with the opportunity to become involved in growing DFCV’s international business in a manner that will benefit us and our Chinese partner.”

In 2013, DFCV’s pro-forma sales amounted to RMB 35 billion (SEK 37 billion) and the pro-forma operating income to RMB 950 million (SEK 1 billion). The total Chinese market for heavy-duty trucks amounted to about 774,000 vehicles in 2013, while the corresponding figure for the medium-duty truck market was 286,000 vehicles. DFCV had a leading position in both the heavy-duty and medium-duty segments, with sales of 120,600 heavy-duty trucks and 51,000 medium-duty trucks, corresponding to market shares of 15.6 and 17.8%, respectively.

During the first three quarters of 2014, DFCV’s sales amounted to RMB 26 billion (SEK 28 billion) and the operating profit to RMB 1.1 billion (SEK 1.2 billion). During the same period, DFCV sold 85,000 heavy-duty and 31,000 medium-duty trucks. On September 30, 2014, DFCV had a net financial asset of RMB 3 billion (SEK 3.6 billion). (2014 un-audited)

AB Volvo’s ownership in DFCV is expected to be recognized as an associated company and will be consolidated as of January 2015 according to the equity method and reported in the trucks segment. 

The payment of the purchase consideration will impact the Group’s cash flow and net financial debt in the first quarter of 2015 by approximately SEK 7 billion. However, as the purchase consideration has been hedged, the nett amount paid for the ownership in DFCV is approximately SEK 5.6 billion.