The year 2005 was a very positive one for the performance of Volvo Trucks in Bulgaria, Andreas Wahlgren, managing director of Volvo Bulgaria, says with a smile.
“I have been here since February 1 2005 and I can tell you that all the essential steps have been taken for the sustainable development of our company here in the Bulgaria.”
Wahlgren has been working for Volvo all his life in different management positions, situated in places from Africa to the Middle East, and his presence in Bulgaria is proof of Volvo’s interest in the country.
The 24-per cent increase in the sales of new trucks as compared to 2004 and the successful launch of the new models Volvo FH and Volvo FM were some of the highlights for Volvo in 2005, Wahlgren says.
“Distribution and construction are also one of our strong sides. Indeed it has been a very profitable 2005 for our customers, with the long service intervals and reduced fuel consumption offered to them.”
Wahlgren does not stop here and says that Volvo has undertaken important steps towards the providing of after-market services to customers.
As for 2006, Wahlgren is sure that it will be the most important year for Volvo in Bulgaria. He is proud of the new Volvo Truck centre that is currently under construction. It is situated in the western part of Sofia on the highway to Belgrade. The inauguration ceremony is scheduled for November 17.
“Of course we are very glad of this fact and we are looking forward to moving into the new centre, which, by all means, is a big step for Volvo Trucks in Bulgaria.” The new centre will include everything from shops to sales offices to showrooms.
“It will offer exactly the same standard as the Volvo centres in Sweden or Germany, for example,” he says.
A new centre means new job positions for Bulgarian workers, according to Wahlgren, who adds that Volvo is already looking for new employees. As a second step for 2006, Wahlgren sees the continuation of development of the after-market network.
“At present we have a workshop in Sofia and a smaller one in Bourgas. We are planning to expand our network in other major cities in Bulgaria because we have a very well-developed network in Eastern Europe. Now we are starting to invest in Bulgaria with the aim of providing the best service to our customers here,” Wahlgren says.
Speaking about customers, Wahlgren says that Bulgarians are a different kind of client and adds with a smile that in Bulgaria, it is very important to have a close relationship with the customer, as compared to Sweden, for example, where deals can be made from a distance.
“I like this aspect of the Bulgarian customers, because I think it is always good to meet the customers in person.”
That is what Volvo is trying to do: be alongside the customers during the lifetime of the vehicles it sells by selling service contracts to the clients.
As for the preferences of the Bulgarian customers, Wahlgren remarks: “Our main clients, until now, had been major international transport companies that know very well their specifications and technical requirements and many of them even have their own workshops. Here in Bulgaria, we are focusing more on the domestic market and distribution. Sometimes the customer has his own production and he is not focusing on the transport aspects of his activity. We are offering to such clients to take care of this service so that they can focus on their core activity.”
A complete solution, a total offer, is what customers would find in Volvo Bulgaria, says Wahlgren.
“Our main goal, of course, is to sell more new trucks, but we also take back and sell used trucks, and with the developing of the market in Bulgaria, we are now aiming at selling more buses as well.”
A sign of the development of the market is the growing interest in the Sofia Motor Show (June 9-18), which this year focuses on light and heavy commercial vehicles. Wahlgren sees it as one of Volvo’s main marketing events in Bulgaria.
“People will see us in the motor show offering our trucks in all kinds of different segments – from transportation to construction. We will also present our after-market and financial services that, combined, give the client the complete solution,” he explains.
Selling trucks in Bulgaria has made Wahlgren familiar with the development of the transport sector in the country. As one of the main aspects of the sector, Wahlgren sees the fact that there are still many old trucks used in the domestic industry that will need to be replaced soon.
“Legislation is changing rapidly and there are still many unclear issues, especially in terms of issuing licenses, but in general I think the sector is developing in a good and positive way,” Wahlgren says optimistically.
Bulgaria is on the brink of European Union membership (scheduled for January 1 2007) and Wahlgren is certain that this membership will be a definite boost for the country’s economy. “We have had experience in other countries in accession, such as Hungary, and I can definitely say that much money will be invested in Bulgaria.”
For the transport sector, this will mean more money for infrastructure, because, according to Wahlgren, the present, quite poor state of Bulgaria’s infrastructure is one of the problems of the truck business in the country. Although Bulgaria does not have the size of Russia or Romania for example, the country has a strong point with its geographical location, Wahlgren says.
“Bulgaria has a very good location in terms of logistics and transport services because the country serves as a bridge between Western and Central Europe.”
This is one of the reasons that the market for new trucks enjoys strong competition, according to Wahlgren.
“Everyone is here. All our main competitors are here and are quite well established, so we have competition beyond doubt, which is good for Bulgaria.”
