Volvo to launch local automatic transmissions production in Russia

MOSCOW, Sep 4 (PRIME) -- Swedish truck maker Volvo Trucks plans to launch production of automatic transmissions at a Kaluga-based facility until the end of 2017, Volvo Group Russia CEO Sergei Yarovsky told reporters on Monday.

“We have been working long on localization of transmissions production, a corresponding memorandum was signed last year. We started to move forward without signing official documents… the process is likely to be organized until the end of the year,” he said without disclosing the sum of potential investment.

The executive also said that export schemes to the CIS states, including Kazakhstan, are being developed and that exports may start in 2018.

He added that automatic transmissions may be produced either using existing facilities, or an additional plant may be built, which will take more time.

Yarovsky said that his company plans to make and sell around 6,000 trucks in 2017 and intends to maintain or expand output in the next years.

He also said that the company is in talks with the government on a special project financing option.

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