Whilst confusion exists surrounding DaimlerChrysler’s plans for Iran, NYSE-listed Volvo appears to be maintaining the courage of its convictions. Its Iranian partner Saipa Diesel has announced that it is to begin exporting its locally built Volvo trucks to various markets in Africa and the Middle East. An un-named Saipa official is reported to have put a €130 million value on the deal, which will see the export of 2000 FM12, FM9, FH12 and NH12 Volvo trucks over the next year. Deliveries will begin in December.
Saipa is already exporting its Volvo product to Kuwait, with 71 units already delivered, and a target of 200 units in place for delivery by the Iranian year-end in March 2007.
Volvo’s history in Iran goes back to 1934, and it has, to date, exported 60,000 units to the Islamic Republic. In the last five years, Iran has imported over 25,000 units from the Swedish OEM.