Gothenburg-based Volvo Defense, a division of Volvo Trucks, has signed a framework agreement with the Estonian Centre for Defence Investments and the Ministry of Defence of the Republic of Latvia for the delivery of logistics trucks.
Volvo was chosen as one of two suppliers, to provide up to 3,000 vehicles over a period of 7 years. Starting in 2024, Volvo Defense will begin delivering logistic trucks to Estonia and Latvia as part of the agreement.
he two countries acquire up to 3,000 vehicles, with a total value of approximately 440 million Euro. The agreement covers 7 years, with a possible extension of 3 years. The contract was signed in Tallinn, Estonia on 4 October, in the presence of representatives from the Estonian and Swedish governments.
The Volvo vehicles will consist of five truck configurations based on the FMX model, which is known for its reliability and efficiency. The agreement also includes a comprehensive maintenance and spare parts program.
The vehicles will be manufactured in Volvo Trucks’ Tuve assembly plant in Gothenburg. This agreement strengthens the relationship between Volvo Defense and the Estonian armed forces, which began in 2014. Estonia and Latvia are established markets for Volvo Trucks with a stable infrastructure for sales and aftermarket services.
“This is a significant deal for Volvo Defense and a proof point of the reliability of our products and of Volvo as a long-term business partner”, says Andreas Svenungsson, President of Volvo Defense. “I am looking forward to working with our Estonian and Latvian customers in tailoring the best products and services for them during the years to come.”
“This contract holds great significance for Estonia, as it offers us a unique opportunity to acquire custom-built vehicles tailored to the specific needs of our defence forces. We are delighted to have entered into a contract with Volvo as their vehicles have consistently demonstrated their suitability for the Estonian climate and environment over the years of use,” said Erko Sepri, Strategic Category Manager (Vehicles, Machinery and Logistics) of Estonian Centre for Defence Investments.