Volvo sales grow 57% in Brazil in 2007
Valor Econômico - 02/15/2008
Yesterday Volvo's division of equipment for construction released sales 57% superior in Brazil last year, going from 648 units in 2006 to 1,017. The growth in Latin America was also record, an increase of 74%m with 2.5 thousand machines sold. For 2008, the forecast is optimist. One of the reasons is that the company registered the best month of January ever in the continent selling 200 machines. The estimate of Volvo for Latin America is to sell US$ 450 million in the year, which means an increase of 15% in relation to the increase achieved in 2007, US$ 388.5 million. In Brazil, the maker sold US$ 205.8 million, increase of 63% over 2006. Besides the natural growth of the market, which was 40% last year, the company will have the line of road development equipment of Ingersoll Rand to increment its sales. The company was acquired in May, last year, and it produces, among other products, compactors and rollers. According to Yoshio Kawakami, Volvo's CEO for the continent, the line of road development machines will be initially imported from the United States. "There is no definition regarding producing it in the country, nevertheless this possibility is not ruled out. For the moment, we are structuring the network of dealerships and technical assistance", he adds. According to Kawakami, the Volvo plant in Brazil, located in the city of Pederneiras, in the interior of the State of São Paulo, works in three shifts in most of the lines of production. We have an area to enlarge it up to ten times", he says. The plant produced 3 thousand machines last year. From them, nearly 2 thousand units were exported to the USA, Europe and Africa. Currently, the average time for the delivery of a piece of equipment may reach 90 days, whereas two years ago it took 45 days. The investment in Brazil in 2008, approved by the company headquarters up to now, is US$ 3.5 million. However, Volvo's CEO reminds that last year this amount was US$ 2.5 million and at the end of the period the total investment was US$ 7 million. "Latin America tends to grow strongly in the next five years", he justifies.