Swedish automobile manufacturer Volvo Cars has signed a deal with the Turkish manufacturer Karsan to terminate local assembly of the Renault Trucks for the domestic market by the end of 2013.
The ending of the local assembly is expected to reduce about SEK95m ($14.5m) in the Volvo Group's operating income for the third quarter of 2013.
The new contract is part of the change effected to the newly launched Renault Trucks range in the regional market while Volvo Group will not make any new investments to upgrade the Karsan manufacturing facility in Bursa to the new range.
The new range of vehicles will be manufactured in France and the move is expected to generate a positive long-term effect, help in better utilization of the existing truck plants, resulting in the company's improved industrial performance and competitiveness.
Currently, the Swedish manufacturer has over 25 truck dealers and workshops in Turkey, as well as an aftermarket distribution center that offer Renault and Volvo trucks.
