Volvo Group announced yesterday that it will sell its 70% stake in China’s Shandong Lingong Construction Machinery (SDLG) for 8 billion Swedish crowns ($837 million) and acquire its European dealer Swecon for 7 billion crowns ($731 million), as part of a strategic shift to concentrate on premium, customer-focused brands. The SDLG stake will be sold to a fund controlled by minority partner Lingong Group. Volvo is stepping back from China’s mid-market, where the construction downturn has hurt machinery demand. Volvo Construction Equipment accounted for 17% of group revenue in 2024, while SDLG contributed about 2%. Volvo shares rose 2.3% following the announcement.