This report says that Volvo may have to end its JV with Chinese-OEM CNHTC as a result of its relationship with new-best-friend DongFeng.

CNHTC is to file a listing application with the Hong Kong stock exchange next month. At the end of 2006, it projected sales of 60,000 units, and revenues of RMB 21 billion (£1.38 / $2.71 / €2.08 million). This all rather suggests that (1) the Chinese are getting ready to go it alone and (2) they’re not just thinking about China.

We don't like to say that we told you so - but hey - foresight is a wonderful thing.

Trebles all round in Gothenburg we assume. The Volvo-CNHTC JV has been a dog. In fact, it’s been rather embarrassing to watch the Swedish leg get lifted higher and higher. As one-way deals go, it’s been textbook. Last year, a magnificent 200 vehicles were moved, and we assume that CNHTC has higher hopes for its own Howo product – which bears a striking resemblance to Volvo’s own vehicles. Farcical.

So Volvo stands to lose up to SEK 500 / £36.6 / €55.32 / $72.04 million on the deal. We say it’s lucky to get out with a pair of shoes still on its feet – this was an ill-conceived, badly executed nonsense, and the shareholders should be celebrating on the one hand, whilst beating AB Volvo's management into a bloody pulp with the other. Should make for a good session tomorrow (Friday) when AB Volvo reports its 2006 numbers.

Now we wait to see what lessons have been learned as the DongFeng deal gets inked. Let us observe - and merely as an aside - that when supping with the Devil, the use of a long spoon is appropriate.

And what's happening with MAN?