The Volvo Group and the Turkish manufacturer Karsan have agreed to end the contract for local assembly of Renault Trucks for the Turkish market before the end of 2013 when a new range of trucks will be made in France. 

Volvo said that termination will have a negative impact on the Volvo Group’s operating income of approximately SEK95m in the third quarter of 2013.

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The termination is made in connection with the change to the newly launched Renault Trucks range. 

There will be no Volvo Group investments to upgrade the Karsan manufacturing facility in Bursa to the new range. The new range will instead be manufactured in France. 

Volvo said that the move will “generate a positive long-term effect of better utilisation of the existing truck plants, thus aligning and contributing to the group truck strategy of improved industrial performance and competitiveness”.

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