Volvo reverses its agreement with Sunsundegui to manufacture two of its models in Alsasua

Volvo reverses its agreement with Sunsundegui to manufacture two of its models in Alsasua
Volvo reverses its agreement with Sunsundegui to manufacture two of its models in Alsasua

The subsidiary of the Swedish multinational has decided not to go ahead with the agreement they announced in May 2023 and which included the technological transfer for the manufacture in Alsasua of the high-end 9700 and 9900 models because the project has turned out to be “too complex”.

Volvo Bus has decided to back out of the agreement with Sunsundegui to manufacture two of its latest generation models in Alsasua. The subsidiary of the Swedish multinational has decided not to go ahead with the agreement that they announced in May 2023 and which included the technological transfer for the manufacture in Alsasua of the 9700 and 9900 models because the project has turned out to be “too complex“.

The decision, which was agreed “by mutual consent,” comes weeks after Volvo confirmed during a visit to Pamplona that the project was progressing well.

From the works council Sunsundegi have indicated that although production of high-end models has been suspended, they are “relaxed” because they will continue working for the Swedish multinational, and Volvo will also “maintain its commitment to increasing the workload.”

Along the same lines, the Minister of Industry and Ecological and Digital Business Transition of the Government of Navarra, Mikel Irujohas assured that Volvo “maintains its commercial relationship” and its “commitment to increasing the workload” in Sunsundegui.

Irujo stressed to the media that “the role and commitment of the Government of Navarra is to support Sunsundegui in the delicate situation in which it currently finds itself.”

“The financial situation remains very delicate”he said, and for this reason, he says, “Sunsundegui has been holding discussions with Volvo to suspend production because it requires considerable investment and, in view of this financial situation, it is considered more appropriate to suspend this production of the new models.”

In May 2023, Sunsundegui signed a historic pre-agreement with Volvo Bus to take over the manufacture of two of the Swedish automotive manufacturer’s latest-generation bus models (the high-end 9700 and 9900 models). This would allow Sunsundegui to double both its production capacity to 640 units and its workforce to between 650 and 800 employees. As expected, the residents of Alsasua and Sakana in general welcomed the agreement with “great optimism”.

Production was expected to start as early as 2024 and the first models to be on the market in 20255, but this was ultimately not possible. However, the Swedish company has wanted to emphasize that the relationship between Volvo Buses and Sunsundegui will continue and that cooperation will also be maintained in the manufacture of coaches with chassis of Volvo and bodywork of Sunsundegui.

 
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