Following a strategic review, Volvo Group intends to initiate a process in order to sell its Governmental Sales business area.

“Governmental Sales has built a very strong position over the last few years with a positive development and a record order book. There are great opportunities to grow the business even further,” said Jan Gurander, deputy CEO and CFO at Volvo Group. “However, we believe that a new owner may be better placed to take the business to the next level. Consequently, we intend to start preparations to divest the business.”

Governmental Sales is a part of Volvo Group’s operations and its sales correspond to approximately 1.5% of total sales. The business, which has about 1,300 employees, most of whom are in France, manufactures and sells specially designed vehicles to governments, the defense industry, peacekeeping forces and aid organizations.

The initiation of a divestment process is subject to the finalization of mandatory consultations with staff representative bodies.