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Volvo cancels agreement with Sunsundegui for the manufacture of next-generation buses

A promising project that faced insurmountable difficulties: The reasons behind Volvo's decision not to go ahead with production in Alsasua.

12 July 2024

Volvo Buses has decided to cancel the agreement with Sunsundegui to manufacture two of its most advanced bus models in Alsasua, the Volvo 9700 and 9900. This decision, recently confirmed by the subsidiary of the Swedish multinational, comes just weeks after the progress of the project during a visit to Pamplona.

In May 2023, Volvo Buses and Sunsundegui had announced an agreement that included the technology transfer necessary for the manufacture of the 9700 and 9900 models in Alsasua. This project, which had been considered strategic for the Navarra region, promised to double Sunsundegui's production capacity to 640 units and increase its workforce to between 650 and 800 employees. Production was expected to begin in 2024 and the first buses would be on the market in 2025.

Volvo

However, Volvo has decided to end cooperation with Sunsundegui, claiming that the project turned out to be too complex. According to the Swedish company, “despite the efforts of both parties,” the need to make additional investments in time and resources was significantly greater than initially anticipated, making the project unfeasible from a business perspective.

This cancellation is a significant blow for Navarra, which had invested six million euros through a loan from Sodena to ensure the viability of the project. Despite this setback, Volvo has emphasized that the relationship with Sunsundegui will continue and that they will continue to collaborate in the manufacture of coaches with Volvo chassis and Sunsundegui bodies.

Volvo

For Volvo Buses, the decision to cancel the manufacture of the 9700 and 9900 models in Europe will not have additional implications, although for now they will not be able to offer these models in the European market. The company concludes that manufacturing coaches is a complex area and that the project required significant additional investment to be viable, something they were not willing to undertake.

Despite this difficult decision, the long-standing relationship between Volvo Buses and Sunsundegui continues, keeping alive the hope of future projects and collaborations that can benefit both companies and the community of Navarra.