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Volvo to launch new Mascott and closes deal with Lingong

AB Volvo distributor and maker of Volvo aftermarket parts together with its subsidiary Renault Trucks will be launching a new version of Renault Mascott---which is a lightweight distribution truck available with two engine alternatives.

The new Mascott is one of Renault Trucks best sellers in its segment with nearly 15,000 vehicles sold last 2006. Delivery of the newest version is expected to start at the middle of 2007. It is equipped with a new gearbox, new driveshaft and new engine. Two engine alternatives are also available, the 130 hp or 150 hp which meet the European Euro 4 emission standard. In addition, the Renault Mascott features a new, effective brake system that provides the shortest braking distance in the lightweight truck segment.

In other news, Volvo Construction Equipment (Volvo CE) has received all necessary regulatory approvals for the earlier announced equity investment of 70% in Shandong Lingong Construction Machinery Co., Ltd which is a major construction machinery manufacturer in China.

According to Tony Helsham, President and CEO of Volvo CE, “We are delighted to move forward in our partnership with Lingong. Lingong’s management, brand, R&D center, manufacturing base, distribution and suppliers are important elements in Volvo CE's growth strategy.”

“This cooperation secures Lingong’s future. Volvo’s advanced technology, management and global distribution will be key factors in the development of our company,” said Wang Zhizhong, Chairman of Lingong.

Volvo CE has invested RMB 327.5 million in exchange for 70% of the equity in Lingong. In the year 2005 Lingong’s operating income was RMB 10.2 million on revenue of RMB 2 billion. The deal however has no material impact on Volvo’s financial position.

About Renault Trucks:
Renault Trucks is a French truck manufacturer with its corporate seat at Saint-Priest near Lyon. Since 2001 it was owned by Volvo.

About Volvo Construction Equipment:
Volvo Construction Equipment was originally Volvo BM. It is a subsidiary and business area of AB Volvo. Volvo Construction Equipment develops, manufactures and markets equipment for the construction and related industries. It has production facilities in Europe, Asia, North America, and South America. The company offers worldwide service and spare-part distribution.

Volvo Construction Equipment mainly distributes its machines through independent dealers and in parallel with their rental program to customers in more than 200 countries. The products for the rental centers include the company’s comprehensive line of compact excavators, skid steers, and backhoe loaders.

The Corporation equipment rental arm, Volvo Rents began its equipment franchising initiative in 2001 and currently has more than sixty active equipment rental centers which are mostly in North America. Its operation is continuously expanding its operation in Europe with rental centers in Portugal and Spain.

About the Author: Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.

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