Volvo is entering into a massive agreement with two defence bodies to deliver almost 3000 trucks over the next seven years in a huge partnership announcement.
Company arm Volvo Defense will deliver the trucks to Estonian Centre for Defence Investments and the Ministry of Defence of the Republic of Latvia, chosen as one of two manufacturers to provide the trucks.
The two countries will require up to 3000 vehicles each at a total value of approximately 440 million Euro. While initially covering seven years in the agreement, the framework can be extending by a further three years if necessary.
With the contract officially signed at a ceremony in Tallinn, Estonia on October 4, it was attended by key representatives from the Estonian and Swedish governments.
The trucks will be produced in Volvo’s assembly factory in Gothenberg, Sweden. They will be built in five truck configurations based on Volvo Trucks’ robust FMX model, including a maintenance and spare parts program.
President of Volvo Defense Andreas Svenungsson welcomes the agreement between Volvo and the defence ministries.
“This is a significant deal for Volvo Defense and a proof point of the reliability of our products and of Volvo as a long-term business partner,” he says.
“I am looking forward to working with our Estonian and Latvian customers in tailoring the best products and services for them during the years to come.”
Volvo has previously worked in conjunction with the Estonian armed forces, making deliveries for defence vehicles since 2014.
Estonian Centre for Defence Investments strategic category manager Erko Sepri says the new agreement builds on a long relationship and solidifies Volvo’s trusted place in the market in Eastern Europe.
“This contract holds great significance for Estonia, as it offers us a unique opportunity to acquire custom-built vehicles tailored to the specific needs of our defence forces,” he says.
“We are delighted to have entered into a contract with Volvo as their vehicles have consistently demonstrated their suitability for the Estonian climate and environment over the years of use.”