(Yicai Global) May 15 -- Jiangling Motors’ stock price fell after the Chinese commercial vehicle maker said it had agreed to call off the sale of its heavy-duty truck business to Swedish auto giant Volvo because the deal’s closing conditions were not met.

Jiangling Motors [SHE: 000550] closed down 2 percent at CNY14.04 (USD2.02) a share in Shenzhen today, after earlier slumping by as much as 3.6 percent.

Volvo Trucks and Jiangling Motors will no longer pursue the deal involving JMC Heavy Duty Vehicle and its production base in Taiyuan in China’s northern Shanxi province because the regulatory closing conditions were not met, they said in separate statements on May 12.

Jiangling Motors, 32 percent owned by Ford Motors, agreed to sell JMC Heavy Duty to Volvo Truck for CNY781 million (USD112.3 million) in August 2021. The planned sale met the company’s strategic vision of “becoming a leader in the lightweight commercial vehicle business,” the carmaker said at the time.

JMC Heavy Duty Vehicle has halted output and sales, and its main operating costs are salaries and equipment maintenance, the parent company said, adding that it will actively seek new opportunities to restructure its heavy-duty truck arm.

“We have great opportunities on the Chinese market and we will continue the efforts to develop our presence,” said Volvo Trucks President Roger Alm. “Our long-term ambition is to grow our business and continue delivering our high-quality trucks to customers in China, together with our dealer partners in the country.”

Editor: Futura Costaglione