
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, November 12, 1994                   TAG: 9411140048
SECTION: BUSINESS                    PAGE: A6   EDITION: METRO 
SOURCE: JOURNAL OF COMMERCE
DATELINE: MEXICO CITY                                 LENGTH: Short

VOLVO GM HEAVY TRUCK SEES PROMISE IN MEXICO

Volvo GM Heavy Truck Corp., the new kid on the truck-manufacturing block, wants to double its production capacity and position itself in the growing Mexican market, a company executive said.

Volvo GM, a Greensboro, N.C.-based company operating an assembly plant in Pulaski County, began assembling tractors in the Mexican industrial city of Monterrey last year and faces an uphill battle as it takes on the giants in Mexico such as Kenworth Mexicana and Dina Camiones.

Although Volvo GM is a leading global manufacturer of tractors, it has a relatively small presence in Mexico and has set a goal of doubling the assembly average to two tractors a day.

A lack of affordable credit has hampered Mexican truckers as they try to modernize their fleets to prepare for the phased opening to U.S. and Canadian competitors under NAFTA, the North American Free Trade Agreement. But while the current financing picture is gloomy, the longer-term picture is brighter, said John Fayne, a regional sales manager in Mexico for Volvo GM.

In an interview at the Trans-Expo '94 trucking industry show in Mexico City last week, Fayne said pending modifications to size and weight rules are expected to provide a boost to manufacturers.

Mexican transport officials have indicated they will publish new norms for truck sizes and weights before the administration of President Carlos Salinas de Gortari leaves office Nov. 30. Mexican truckers have been asking for a phased implementation of the norms so they can adjust without a financial shock.

Users of transportation services who compete in the post-NAFTA era will demand lower costs, Fayne said.

by CNB