GOTEBORG, Sweden, Oct. 16, 2003 (PRIMEZONE) -- An agreement has been reached between Volvo Bus Corporation (Nasdaq:VOLVY) (Other OTC:VOLVF) (Other OTC:VOLAFK) and Renault Trucks covering the sale of Volvo buses by Renault Trucks in France.
The French bus market is the second largest in Europe with more than 4,000 registrations each year. Volvo has been present in the market for more than thirty years selling primarily tourist coaches as well as inter-city and city buses. During the past ten years, more than 1,200 Volvo buses and coaches have been delivered to French customers.
Concurrent with the new marketing agreement, Volvo Buses will gradually present new models to meet market needs in France. Volvo recently delivered low-floor, CNG-powered (compressed natural gas) buses to the cities of Nantes and Montbeliard and a new version of Volvo's low-floor bus, the Volvo 7700, is being presented at the Bus World fair in Kortrijk, The Netherlands. In addition, new tourist coach and inter-city bus models will gradually be introduced.
The cooperation with Renault Trucks will provide Volvo Buses access to a large dealer network for repair, service and spare parts. "This will be an excellent opportunity to increase our business," says Patrick Mosca, Senior Vice President, Renault Trucks French Sales Operations. Combined with the existing Volvo Trucks dealer network, Volvo Buses will ensure virtually nationwide coverage in France. According to Volvo Bus Corporation President Hakan Karlsson, who is highly satisfied with the agreement, the ambition is to attain a substantially higher market share in France.
"With this new set-up, France has the potential of becoming one of Volvo Buses large markets in just a few years time," says Hakan Karlsson.
October 16, 2003
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