BEIJING - Dongfeng Motor Corp has agreed to form a joint venture with Swedish truck maker Volvo, a Chinese business newspaper reported recently.

The Economic Observer report cited anonymous insiders saying the joint venture will be formed next year with Dongfeng holding a 55 percent share and the remainder owned by Volvo.

Volvo's truck unit is independent from its car busines, which was sold by Ford to Zhejiang Geely Holding Group last year.

The European manufacturer of heavy-duty trucks once had a joint venture in China with Sinotruk in Jinan, Shandong province.

Established in 2003, the partnership terminated production in 2006 due to slow sales of its high-priced products. Volvo still has ongoing joint ventures with SAIC Motor Corp and a Xi'an automaker to produce buses in China.

Both Dongfeng and Volvo could not be reached for comment on the reported deal. But market analysts said cooperation between the two could benefit both partners.

Currently Dongfeng has a joint venture with Japan's Nissan Motor that makes both cars and trucks.

The Economic Observer reported that Nissan "plays a crucial role in settling the new deal" and will withdraw from the joint venture's commercial vehicle business, which Dongfeng will reward by supporting local production plans for Nissan's luxury brand Infiniti as well as Renault cars.

Nissan and French carmaker Renault formed a strategic alliance in 1999 through cross shareholdings. Carlos Ghosn, chief executive of both Nissan and Renault, said earlier this year that production of Renault cars with Dongfeng will start before 2016.

Renault began making vehicles in China in 1994, but production came to a standstill around 2000 due to sluggish sales.

Infiniti has not announced a decision on local production, but market observers said it would be a "reasonable move" if the luxury brand wants to catch up with German rivals that are already deeply entrenched and successful in China.

Nissan announced in the middle of this year that it plans to double its market share to 10 percent in China in 2016.