Volvo stirs up status row
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VOLVO has once more vented its anger over the loss of British manufacturer status and has called for the formation of an independent body, chosen by the Department of Trade and Industry, to decide such important matters, writes TIM COBB.
In making this call, Volvo Truck and Bus GB claimed that only a few weeks ago it had been granted vehicle supplier status to the Ministry of Defence by meeting its strict British Standards qualifications.
The MoD pointed out that Volvo GB has held this status for at least 15 years, but was unaware that Volvo had lost its British classification granted in August 1982.
The Society of Motor Manufacturers and Traders method of allowing members to decide on the fate of other members is wrong, a Volvo GB spokesman told CM.
The formation of an independent body to judge important issues such as British classification would alleviate problems.
But details of who would sit on such a body or how it would operate have not yet been considered by Volvo.
In demonstrating the need for an unbiased body, Bernt Brantzaeg, managing director of Volvo GB, said that its manufacturing methods employed were adequate to satisfy the MoD that its vehicles were British and that it had recentlY been given a certificate giving Volvo supplier status.
An official from the MoD later told CM that Volvo had held this status for "at least 15 years." "The only vehicle they supply us with is the Snow Cat and no other manufacturer produces a vehicle like it," he said.
Mr Brantzaeg said that the SMMT decision to stop Volvo's British tag did "not encourage investment in Britain."
A spokesman for the SMMT said: "We have not heard the suggestion that there be an independent body to decide on whether any individual product is British or otherwise.
"The rule book at the moment declares a product of an EFTA country (like Sweden) has free access to the EEC if the product is of 60 per cent EEC valueadded content."
The nationality of a product, for purposes of registration, is decided by the point of final significant manufacture, he added, but for the British Government, a vehicle is classed as British where 50 per cent of its ex-works value is British.
• A three-year Defence Standard certificate has been awarded by the Ministry of Defence to Edbro. This will cover hydraulic tipping hoists, skip loaders, and hi-lifts for airport vehicles.