VOLGREN PARENT SIGNS THOUSAND-PLUS BUS DEAL IN MEXICO; USD$149 MILLION VALUE

By: Fabian Cotter


VOLGREN’S BRAZILIAN PARENT COMPANY MARCOPOLO has inked a deal in Mexico to provide a massive 1,085 buses to the leading IAMSA and Herradura Occidente consortiums – the largest ever Marcopolo deal with a single customer, representing revenue of over USD$149 million dollars, it was announced recently.

VOLGREN PARENT SIGNS THOUSAND-PLUS BUS DEAL IN MEXICO; USD$149 MILLION VALUE
Volgren's Brazilian parent company, Marcopolo, has received a record-breaking order from Mexico.

Marcopolo Mexico - one of the leading bus body manufacturers in the Mexican market - will provide the bus bodies to two of the main road transport operators in the country. The vehicles will be assembled at Polomex in the city of Monterrey, Mexico, it’s stated.

According to Paulo Andrade, managing director and responsible for the operations of Marcopolo Mexico, the IAMSA Group is a traditional and important client.

"The partnership between Marcopolo and IAMSA is very strong since 2000. During this period we have already provided a significant volume of vehicles. Last year, we developed more than 110 units of the Marcopolo MP 180 MX double-decker bus, with exclusive configuration and a unique standard of comfort and safety," he said.

The buses - Marcopolo MP180, MP135, MP120, MP 105 and MP 90 Road, and MP MP70 and 60 MT Urban - will allow the operators to offer a superior luxury service, with first-class service in the regular lines of IAMSA’s ETN, Linha Costa, Parhikuni and Amealcenses, and Herradura’s Pegasso, Southern Jalisco, Tetsa and Falcons road lines, it’s stated.

The delivery of the 1,085 units, with different configurations, will occur over a five-year period starting in the last quarter of 2018.

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"This agreement reflects a significant change in the industry’s fleet renewal processes, and we are certain that this strategic alliance will become a competitive advantage for IAMSA's companies, enabling them to offer the 20 million annual passengers brand new vehicles, equipped with the highest technology standards in safety and comfort," said Jesús Ruiz López, CEO of Autotransporte, IAMSA Group.

The IAMSA Group is a major investor in the Mexican road transportation sector, with more than 70 years of experience and transporting in excess of 20 million passengers annually, covering the North, Pacific, South and central areas of the country.

Andrade adds that the past two years have been challenging for Marcopolo Mexico.

"This deal is very important and will allow us to increase our market presence as part of our strategic plan to reach 30 per cent market share and lead the Mexican market by 2020," he explained.

"We are very proud and grateful to IAMSA and Herradura Occidente Groups for the trust shown towards our brand. We reiterate our commitment to offer high-quality products and reliability, with the development of valuable solutions to our customers," he concluded.

In April last year, Marcopolo secured the remaining 25 per cent stake in Volgren. The agreement followed the Brazilian company’s 75 per cent majority investment in December 2011, from the Grenda family, who founded the company in 1977.

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