In a statement made public on Thursday, the new owner of the former Volvo AB (VOLVb.ST), a Swedish truck manufacturer, announced that production had resumed after a hiatus of almost two years. The new owner intends to build 2,000 vehicles by the year 2024.
In February 2022, Volvo ceased all sales, services, and manufacturing in Russia. In October of that same year, the company said more write-downs could be required. In 2021, Russia was responsible for around three percent of the company’s total net group revenues, which totaled approximately 36.18 billion Swedish crowns.
Due to Moscow’s invasion of Ukraine in February 2022, Volvo, which possessed a plant that could produce 15,000 units annually, was one of the many Western automakers who decided to cease production and ultimately withdraw from the Russian market altogether.
Although Chinese automobile sales appear to have reached a peak of almost fifty percent, Chinese automakers have been gaining market share during the Western exodus and the faltering production in Russia, according to data shared with Reuters.
After being transferred to Industrial Investments Group in September, the facility that Volvo had previously owned was subsequently rebranded as Automobile Motor Company (AMO). The specifics of the transaction were not made public.
Under the ‘Next’ brand, Industrial Investments announced that it was manufacturing a vehicle with a huge capacity and a high capacity for cross-country travel. Still, it did not provide any other information.
The firm has said that this year, fifty trucks will be manufactured. In the future, the factory management intends to increase the variety of manufactured vehicles.
Andrei Alexandrov, the Chief Executive Officer of Industrial Investments Group, stated that the business was now engaged in another round of negotiations with an unnamed overseas partner.
