Thursday, October 29, 2009

Volvo Trucks Amalgamate US Operation With Mack But Brand Names Remain

New Company North America Trucks will Market Both as Demand Rises
Shipping News Feature

US – After Volvo Trucks AB posted a smaller loss last week than originally anticipated, it has announced sweeping changes to its management system in the country whilst maintaining its two main commercial vehicle names. Both US Volvo and Mack trucks keep their badges and separate identities, but a new company, North American Trucks (NAT) will begin trading as from New year’s day 2010.The move is intended to streamline administration but both vehicle brands will continue to be marketed by independent sales teams.

The move comes as the group has started to take on workers at one of its vocational vehicle plants which produces rigs designed for specific commercial purposes. This is mainly due to orders starting to come in for trucks to be delivered after January’s change in models which will have to conform with new emission rules being introduced by the U.S. Environmental Protection Agency (EPA). The new model trucks will all conform but the cost increase of each, around $10,000 per unit, will be passed on to the customer. Despite this many consumers are thought to have waited to ensure their fleet replacements remain legal, do not incur any future penalties and maintain their resale value.

In Europe Volvo trucks have already won two awards this month for their commitment to the environment. They have picked up another Greenfleet award for the fourth consecutive year and also Irish Truck of the Year 2010 for their 11 litre Volvo FM which won because of its fuel economy and adaptability.