Volvo Parks Trucks in Russia
A big production of foreign trucks will soon emerge in Russia. Volvo Group pledged yesterday to invest ˆ100 million in constructing a new carmaker in Kaluga with the annual capacity of 15,000 vehicles.
Volvo Group officially announced Thursday an intention to construct truck production facilities in Russia. The news release says investments will reach ˆ100 million and the annual target capacity is estimated at 10,000 Volvos and 5,000 Renaults (truck division of Renault is a member of Volvo Group).
In Russia’s office of Volvo Trucks, they said they will build a plant in Kaluga by 2009. So far, Volvo has had only assembly facilities in Zelenograd (500 cars a year).
“It will be the first full-fledged truck production in Russia,” Volvo representatives specified. The analysts expect the launch of Volvo’s own works here to strengthen its advantage vs. direct competitors - Scania and MAN.
But the serious risk is the absence of benefits for components deliveries, which may adversely affect success and payback dates of the undertaking. In Russia, the duty-free import of components for industrial assembly of cars don’t extend to the trucks production.
www.kommersant.com
All the Article in Russian as of Apr. 20, 2007
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