Major agreement for Volvo Buses in China

Major agreement for Volvo Buses in China

Volvo Buses, with subsidiary Sunwin Bus, signed a framework agreement for 1,500
buses with bus operator Bashi Group in Shanghai, China. The agreement is valued
at approximately SEK 1.3 billion and the buses will be delivered up to the
opening of the World Expo in Shanghai in May next year.

The City of Shanghai is making major investments in modernizing and streamlining
its public transport prior to the World Expo, which will open on May 1, 2010.
The theme for the fair is “Better City, Better Life”.
“An increase and modernization of the bus traffic is an important part of the
venture,” says Lars Blom, Head of Volvo Buses' operations in China. “It involves
raising the standard of the bus fleet by purchasing more Volvo buses and a
strong investment in environmentally friendly buses from our subsidiary Sunwin
Bus, a 50-50 joint venture between Volvo Buses and Shanghai Automotive Industry
Co.” 
Of the framework agreement's 1,500 buses, about half will be Volvo buses, models
Volvo B7RLE and Volvo B6R, and the remainder of the Sunwin brand. The Sunwin
buses include normal diesel buses as well as hybrid buses, electric buses that
are charged at night and buses equipped with super capacitors that are charged
at bus stops when passengers alight and board the buses. 
The framework agreement implies that the Bashi Group will make suborders each
month. To date, the company has called for about 300 of the buses and the aim is
that all 1,500 buses will be ordered and delivered prior to the commencement of
the World Expo.
 “It is encouraging that customers in Shanghai are so satisfied with the quality
supplied by Volvo Buses and Sunwin Bus that they return to us with new orders,”
says Lars Blom. “We are also hoping for additional bus orders in the venture now
in progress in Shanghai.” 
Components for Volvo buses' chassis are packed in the plant in Borås and
dispatched to the plant in Shanghai, where the chassis are mounted and the buses
assembled. The same plant also manufactures the local Sunwin buses.  

June 22, 2009
For further information, please contact Per-Martin Johansson, press officer, +46
31 322 52 00, per-martin.johansson@volvo.com

Volvo Bus Corporation is one of the world's largest manufacturer of large buses
and coaches. The range comprises complete vehicles, chassis, bus bodies,
transport system solutions for metropolitan traffic, leasing, financing and
service contract maintenance. Volvo Bus Corporation is part of the Volvo Group,
one of the world's leading manufacturers of trucks, buses and construction
equipment, drive systems for marine and industrial applications, aerospace
components and services. The Group also provides complete solutions for
financing and service. For more information, please visit
http://www.volvobuses.com/