Speaking with GoAutoNews Premium at the recent Brisbane truck show, Volvo Group Australia (VGA) president and CEO Martin Merrick said his company had invested $50 million in local manufacturing and has this month signed off on a further $25 million capital spend to boost output at its Brisbane manufacturing plant.

Volvo Group Australia (VGA), which represents Volvo Trucks and truck-maker affiliates Mack and UD, has been involved in making trucks in Australia since 1972.

Mr Merrick was asked why Volvo Trucks is building in this country and if the move is sustainable.

“It is unlike anywhere else in the world,” he said.

Martin Merrick

“When you look at the global transport industry, it is unique. You hear about the tyranny of distance, the heat and the loads of Australia and I’m really excited about the bragging rights I get from my colleagues because the things we have here are unlike anywhere else.”

Mr Merrick said VGA has more than 50 engineers plus purchasing, manufacturing and commercial teams operating out of its Queensland premises.

“It means we can be really agile with teams that work with our customers and offer them a total solution,” he said.

“In terms of sustainability, in the past five years we have invested $50 million in the factory and I’ve just pressed the button to commence $25 million investment for the next three years.

“So long as we have customers here who have these demands for specific products for the Australian market, then we will have manufacturing here.

“I have to emphasise that what we have in Australia is not an assembly line. We are a manufacturer.

“We spend roughly $300 million on the local supply chain annually for Australians and we have no subsidies whatsoever for being here. None.”

VGA used the Brisbane truck show to launch three new models, including an extended-cab version of its popular FH long-haul truck called the XXL.

The XXL was designed specifically for Australia with a sleeper cab that is 250mm longer than the Globetrotter version.

“It provides a better sleep for a better drive,” Mr Merrick said of the safety aspects of the larger cabin.

“Australian customers asked for this. They also wanted a better mattress for the bed so we took that to Sweden and within eight months had a plusher mattress. It’s an example of the role Australia plays in the bigger picture.

“We have 50 orders already. It is an example of us working with the industry to make trucks to make a better working environment for the drivers.”

Mr Merrick said that though the parts for the XXL were made in Australia, there are no plans to export the parts to other markets which may adopt the longer-cab version.

In addition to unveiling the XXL at the biennial Brisbane truck show, VGA unveiled a new FH special-edition truck, the FH25, to celebrate the 25th anniversary of the truck model in Australia.

It also unveiled the FE low-cab truck, designed with larger glass and mirror surfaces to maximise driver visibility for urban delivery duties while the low cab height suits airport use where it fits beneath the wings of aircraft.

Mr Merrick also confirmed that VGA is planning trials of electric Volvo trucks in Australia.

“We have launched the FE and FH in Europe with electrification,” he said.

“We will work with our customers in Australia to gauge demand. They must see value in an electrified truck and then we can see what the demand is like.

“We have some trials planned in Australia but we can’t discuss this.”

VGA is also trialling its long-term connectivity programs, with Australia playing a part of providing data to minimise vehicle breakdown to maximise operator returns.

“We are testing connectivity and we started monitoring the data from our trucks equipped with systems,” Mr Merrick said.

“We have two trials underway working with key customers to monitor the vehicles and prevent costly breakdowns.

“We have some good data already. Again, we will build capabilities in this area and we are on that journey and will show the results when they are available.”

Mr Merrick now expects the heavy-duty truck market in Australia to finish the year with about 13,500 unit sales, a softer landing than its 14,326 sales (3807 allocated to VGA) made in 2018. He was not specific on the reasons for the fall.

By Neil Dowling