Staffan Jufors, chairman of Volvo Trucks, Europe's second biggest truck manufacturer after DaimlerChrysler, says the volume of investments attracted by Romania will increase considerably after European Union integration. Volvo Trucks will step up its activities on the Romanian market amid construction market growth and the implicitly rising demand for specialised equipment. Romania will therefore become an important destination of the truck maker's investments.
"Given the constant growth of the Romanian construction market and the importance of this industry to us, we will step up our activities on the Romanian market," stated Staffan Jufors, chairman and chief executive officer with the Swedish company. Jufors also said the group he runs planned to be a long-term player on the Romanian market.
"We are currently investing in this country, creating jobs and expanding our distribution network. We are sure many companies from all over the world are going to invest in Romania after the upcoming integration. We will not change our strategy, but we will make further investments," Jufors also said. The eastward expansion of EU borders is also an opportunity for the Swedish company to improve and strengthen its position on neighbouring markets.
"European operations are very important for Volvo Trucks and at the same time, after Eastern European markets such as Ukraine, Romania or Russia become open, we want to tap into them. We are already well represented in Asia," stated Jufors.
The chairman of Volvo Trucks says worldwide alliances of truck producers are extremely beneficial in terms of market development. Volvo Trucks, which in 2001 acquired the truck unit of Renault French carmaker, is the most important stakeholder in Japan's Nissan Diesel company and is in talks with Donfeng Chinese truck maker for a new acquisition. "The situation in China is quite complex, but we are optimistic about the deal," stated Jufors. "In case we reach an agreement, we will produce trucks under the same brands because each brand has its own value on a certain market," Volvo chairman also said.
The Romanian branch of the Swedish company, Volvo Romania, in the first nine months of this year sold 507 new trucks, 85 of which in September, according to the data released by the Association of Automotive Manufacturers and Importers (APIA). Volvo Romania sold 683 commercial vehicles of over 3.5 tonnes in 2005, according to APIA.
The company's revenues in 2005 revolved around 100m euros, including both revenues from truck and spare part sales and revenues from car service operations. The company's turnover last year went up by 20%, to 16.9m euros, from 14m euros in 2004 and Volvo Romania's net income rose by the same percentage, from 1.54 million euros in 2004 to 1.84m euros last year, according to Finance Ministry data.
Volvo Romania
Sold 507 new trucks in the first 9 months of this year, 85 of which in September
In 2005 sold 683 commercial vehicles of over 3.5 tonnes
In 2005 registered revenues worth around 100m euros
Turnover rose by 20% last year, to 16.9m euros, from 14m euros in 2004
Net income rose by a similar percentage, from 1.54m euros in 2004 to 1.84m euros last year
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