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Volvo Group to produce I-Shift transmissions in Russia


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Info-Commentator  /  July 11, 2016

At the International Industrial Exhibition "INNOPROM 2016" in Yekaterinburg, Volvo Group has signed a memorandum of intent with the Kaluga regional government to invest in the local production of Volvo I-Shift automated manual transmissions (AMT).

The document was signed by Volvo Group CEO Martin Lundstedt and Kaluga Deputy Governor Vladimir Popov.
Volvo Group has a number or ongoing projects in the Kaluga-South Industrial Park including its Volvo-Renault truck KD assembly plant, Volvo-Renault cab plant, Volvo Truck company-owned store, Volvo Customs Department and Volvo Construction Equipment (VCE) excavator plant.

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Established in 1998, Volvo's importing distributor for Russia, ZAO Volvo Vostok, is responsible for all Volvo operations in the Russian market including truck, bus, construction equipment and marine.

ZAO Volvo Vostok's Moscow headquarters manages all sales and after-sales support including dealer administration and management, a spare parts distribution center, advertising and a Volvo training center.

The Volvo brand has been registered in the Soviet Union / Russia since 1969.

"Volvo Financial Services Vostok", a Volvo subsidiary, was established in 2003 to provide customers with financing and leasing options. As of 2009, Volvo financed over 11,500 trucks in Russia worth US$1.7 billion.

Since 2003, Volvo truck sales have increased from 500 units to 3,000 in 2007.

Volvo's truck sales in Russia rose 83% in 2006 to 2,436 units.

Russia is Volvo's largest market in Central and Eastern Europe, with Poland in second place at 2,079 units.

Volvo sold 3,904 trucks in Russia in 2007.

Volvo sold 5,800 new trucks in Russia in 2008, a 27% increase over 2007. Volvo overall sold about 12,000 new and used trucks in Russia in 2008. Volvo imported 11,841 trucks to Russia in 2008, up 27% over 2007, including 6,580 new trucks and 5,261 used trucks. (Of the 6,580 new trucks, 4,189 tractors, 2,256 rigid chassis and 135 specialty chassis)

Over 31,000 Volvo trucks are registered in Russia.

Volvo began producing FM12 4x2 tractors at a joint venture plant near Moscow (Zelenograd) in 2003. Volvo owns 66% and "AFK Systema" owns 34%. But the plant's annual production capacity is only 500 units, not enough to meet Russia's fast growing demand.

To increase local production, Volvo Group opened a US$132.6 million heavy truck factory in Kaluga (200km southwest of Moscow) on January 19, 2009.

With an annual production capacity of 15,000 units, Volvo Group had hoped to produce 10,000 Volvo trucks and 5,000 Renault trucks annually including Volvo FH, FM and FL and FE models; and Renault Premium and Kerax models. However, due to dismal sales, the plant has remained in first gear.

In May 2007, Volvo scored its largest single fleet order with 300 trucks to “Sunflower Logistics”, a large Russian car transport company. The contract included financing for all the trucks through Volvo Financial Services. Sunflower is expanding its truck fleet to meet the fast-growing market for passenger cars in Russia. The order was for 300 Volvo FM tractors with 440 horsepower D13 engines and I-Shift AMT transmissions.

Coca-Cola operates over 1,000 Volvo trucks in Russia, including FM 4x2 tractors and FE rigids.

Volvo has 39 authorized service locations and 20 sales offices in Russia, including two self-owned truck centers in Moscow and St. Petersburg.


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