Volvo ends contract to build trucks in Turkey

Volvo said that termination would have a negative impact on the group's operating income in the third quarter of 2013.

Volvo ends contract to build trucks in Turkey

World Bulletin/News Desk

Turkish automaker Karsan said on Tuesday that its contract to build Renault Trucks in Turkey will not be renewed after the current six-year deal expires in November. Volvo, which owns Renault Trucks, announced on Tuesday it had terminated a contract for local assembly in Turkey and that the new range of Renault trucks will be manufactured in France. Volvo said that termination would have a negative impact on the group's operating income in the third quarter of 2013. The company said the move will “generate a positive long-term effect of better utilization of the existing truck plants, thus aligning and contributing to the group truck strategy of improved industrial performance and competitiveness.” In 2007, Volvo's Renault Trucks unit and Turkey's Karsan agreed to cooperate on the production of trucks for Turkey and neighboring countries.

Karsan started producing the trucks on behalf of Renault Trucks at its plant in Bursa in 2009. The models that were produced by Karsan include Renault Premium Route, Premium Lander and Renault Kerax. Karsan's plant has the capacity to produce about 5,000 vehicles a year on behalf of Renault Trucks.

Güncelleme Tarihi: 22 Ağustos 2013, 11:32
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