[GTO]

Excerpts from the official communication received:

- VE Commercial Vehicles Limited (VECV) to be the global manufacturing hub and industrial base for Euro 3, Euro 4, Euro 5 and Euro 6 medium-duty base engine requirements of the Volvo Group

- In a global first initiative, VE Commercial Vehicles (VECV) today announced an investment of 2,880 MINR (million Indian rupees) in its Pithampur plant for the production and final assembly of the Volvo group’s new global medium-duty engine platform.

- According to Par Ostberg, President, Trucks Asia, Volvo Group and Chairman, VE Commercial Vehicles, “This investment by VECV in its Pithampur plant gives the Volvo group a complete facility in India for manufacturing and assembling the new medium-duty engine which will be introduced in the Volvo group’s trucks and buses worldwide over the next few years. Additionally, these engines will also be used for Eicher’s range of heavy-duty commercial vehicles. ”

- Due to this investment, it will be possible for the Volvo Group to locate most of its production of medium-duty engines to VECV’s plant in Pithampur. VECV has an established and extensive supplier base in India with efficient purchasing channels and is already producing about 40,000 engines per year in its existing Pithampur plant. The new investment in Pithampur will result in an annual production capacity of an additional 85,000 engines. In addition to production of the base engine itself, the facility in Pithampur will also conduct final assembly of engines for India and all of Volvo Group’s global markets with Euro 3 and Euro 4 emission requirements.

- According to Siddhartha Lal, MD & CEO, VE Commercial Vehicles, “VECV has been entrusted with building the medium-duty engine for Volvo group’s global requirements at our facility in Pithampur. This is possibly the largest such project in India and certainly the most technologically advanced – as we will be producing base engines capable of Euro 6 emission norms. This will catapult VECV into one of the largest commercial vehicle engine manufacturers in India and will give us capability well beyond any of our competitors. The very high quality and durability requirements of the Volvo group, such as a million kilometer duty cycle for such an engine, will allow us to also give the Eicher brand heavy-duty customer a level of reliability and asset life that is unparalleled in India. This will be another large step towards our vision of becoming a leading CV player in India and other emerging markets by driving modernisation in commercial transportation.”

- The new medium-duty platform comprises 5, 7 and 8-litre engines in configurations from 215 to 350 horsepower. The engines are based on the Volvo Group’s new PSS engines and will be manufactured to cope with emission requirements according to the Japanese PNLT (Post New Long-Term), the US EPA 2010, as well as Euro 3, 4, 5 and Euro 6. The 5 and 8-litre engines will be produced and assembled in India while the 7-litre engine will be produced and assembled only in Japan.

Flow-charting the synergies between VECV & VPT for Volvo group’s medium-duty engine platform:

1. Pithampur will be the industrial base for the manufacture of medium duty base engines; capacity of 85,000 base engines per year; starting 2012.

a) Of this count, Pithampur will also do the final assembly of 55,000 engines per year; starting 2012. These will meet the Volvo group’s global requirements of Euro 3 and Euro 4 engines as well as VECV’s requirement of Eicher heavy-duty commercial vehicles.

b) of this count, 30,000 base engines will be sent from Pithampur to VPT’s plant in Venissieux, France where these base engines will be assembled for the Volvo group’s Euro 5 and Euro 6 requirements; starting 2013.

[teamveevee]

A precursor to VECL becoming a 100% subsidiary of Volvo Group. For Volvo's long term survival in India, just luxury buses and niche Trucks are not enough. I thought Eicher uses mostly Cummins engines, never knew they used to make engines...

[binaiks]

Originally Posted by teamveevee

I thought Eicher uses mostly Cummins engines, never knew they used to make engines...

Eicher makes engines derived from the old Mitsubushi ones - i heard the engine employed on the bus was made by adding two cylinders to the old 4 cylinder mitsu engine.

[teamveevee]

Originally Posted by binaiks

Eicher makes engines derived from the old Mitsubushi ones - i heard the engine employed on the bus was made by adding two cylinders to the old 4 cylinder mitsu engine.

Thanks Binaiks, I guess for the LCV and Mini buses. The larger buses i believe were using Cummins engines.

[Mpower]

All that is old news. They are now manfacturing a Volvo designed engine in MP.

[volkman10]

Volvo Ups Stake in Deutz AG to Become Largest Owner !

Swedish truck maker Volvo AB (VOLV-B.SK) said Wednesday it has signed a deal to increase its ownership in German engine manufacturer Deutz AG (DEZ.XE) to over 25% from 6.7% in a deal worth up to 130 million euros ($162.4 million).

Volvo gets the right to purchase the stake from Same Deutz-Fahr Group at EUR5.88 a share, according to the agreement. The purchase will make Volvo

UPDATE: Volvo Ups Stake in Deutz AG to Become Largest Owner - WSJ.com