Truck maker Volvo Group thinking of selling Russian business - paper

MOSCOW. Oct 19 (Interfax) - Volvo Group, which suspended truck production in Russia in late February, is thinking of selling its Russian business, the Vedomosti newspaper said, quoting a company representative.

The Swedish automaker's Russian assets include a cab welding and painting plant and assembly plant in Kaluga for 15,000 trucks per year, and four service centers in various cities.

"Volvo Group cannot conduct operations in Russia in the current situation, so it has been decided to adapt the business and start reducing the number of employees," a company representative told the paper, adding that it was too early to talk about the future of the production sites.

Volvo Group's press service told Interfax in early July that the company had begun to cut staff in Russian divisions to adapt to changing conditions. Vedomosti said that since then, the group's staff in Russia had decreased from 1,270 to 900.

Quoting an unnamed top manager of an automobile plant in the CIS, the paper said Volvo Group had sent out a proposal to acquire all of its business in Russia for consideration, with plans to close the deal before the end of 2022 or in the first quarter of 2023.

The Industry and Trade Ministry did not make comment.

Volvo trucks were Russia's third most popular in 2021 after those made by Kamaz and GAZ. The Swedish firm sold 5,991 trucks last year, up 61% from 2020, according to Avtostat Info data based on vehicle registrations. The company's share increased from 5.4% to 8.5% over the year, and the fleet of Volvo trucks in Russia totaled 105,154 in 2021.