GÖTEBORG, Sweden—The Volvo Group has terminated a contract for local assembly of Renault Trucks with Turkish manufacturer Karsan.
The work on trucks destined for the Turkish market will cease before the end of 2013.
The termination will have a negative impact on the Volvo Group’s operating income of approximately 95 MSEK (CAN$15.16 million) in the third quarter of 2013.
The termination is made in connection with the change to the newly launched Renault Trucks range and Volvo will no longer sponsor investments to upgrade the Karsan manufacturing facility.
The new range will instead be manufactured in France. The move is a consolidation to make better use of existing truck capacity with hopes of improved industrial performance and competitiveness.