Volvo Group launches UD Trucks in Korea

Joachim Rosenberg, executive vice president of the Volvo Group, talks with The Korea Times after the launch event of the group’s Japanese subsidiary brand UD Trucks here at the Seoul Marina Club & Yacht, Wednesday. / Courtesy of Volvo Group

Volvo Group launches UD Trucks in Korea

UD Trucks, the Japanese subsidiary of Volvo Group, the leading global maker of commercial trucks, announced the launch of its Korean business Wednesday, aiming to get a significant slice of the market for midsized trucks. The launch came as part of efforts for Volvo to expand its presence in Korea, which has emerged as a key market in Asia.

“If you want to be a world leader in commercial transport solutions, which is our vision, you also have to be a leader in Asia,” Joachim Rosenberg, executive vice president of the Volvo Group, told The Korea Times after a launch event at Seoul Marina Club & Yacht.

He added that Korea, with its very demanding customers, was a “true key market” in Asia.

“Korean customers in general are extremely knowledgably because the country has a lot of owner-operators. Drivers own their trucks themselves. That’s not the case in other markets. Korean customers tend to be very demanding, very professional and skilled and we enjoy that as it gives us a good challenge and gives us an ability to utilize that in other markets,” he said.

He also emphasized that it is a rational decision to launch a new brand here even considering the current sluggish economy.

“Economies have cycles. And we’re making a long-term commitment to Korea. We want to support Korea to evolve even further. We’ve been preparing to come here for a few years and we’re ready now and we’re going,” he said.

Thanks to such a strong commitment to Asia, the group’s sales have rapidly grown from less than $1 billion in 1998 to over $11 billion in 2011, and Asia now accounts for a quarter of the group’s global business.

UD Trucks Korea will initially sell the Quon 6×4 model, a 15-ton cargo truck.

The truck will be equipped with a newly developed in-line 6-cylinder GH11 engine with 419 horsepower and maximum torque of 203kgm from 950rpm to 1,400rpm. This produces superior climbing capability as well as less driver fatigue by minimizing the need for gear shifts, according to UD Trucks.

Rosenberg said the model was developed to meet new emission regulations and growing demand for high levels of both fuel economy and driving performance.

“We’re interested in trucks that give you value for money and that give you very good fuel economy, durability and reliability over the lifecycle of the product based on Japanese quality and craftsmanship and Volvo Group technology and it’s a good choice,”he said.

UD Trucks was previously known as Nissan Diesel, which was acquired by the Volvo Group in 2007.

Thanks to the success of Volvo Trucks here, Rosenberg expressed his confidence in the success of the new brand.

He said the target customers of the two brands and product lines are different, but UD Trucks can utilize Volvo Group’s knowledge about the market and dealership and service network.

“We have a fully Korean local management and that’s our strength. We have a long history with our Korean management team, but it’s not the case of other players in the industry. It’s a big advantage,” he said.

He said they will run dual-brand networks by using the current 25 dealerships for Volvo Trucks, 15 of which will sell UD Truck products, and share service networks.  <The Korea Times/Kim Tae-jong>

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