Valtra celebrates 30th anniversary of co-operation between Volvo BM and Valmet

09.10.2009

The tractor market in Europe became saturated at the end of the 1970s and Volvo BM made a strategic decision to concentrate on construction machinery. In March 1978, Per Gyllenhammar, Managing Director of AB Volvo, invited the Managing Director of Valmet, Jaakko Ihamuotila, for negotiations and a Letter of Intent was published on November 14th, 1978. The final agreement was signed on 1st October 1979. This cooperation agreement was the biggest industrial deal between Sweden and Finland so far.

The deal was favourable to both parties. Volvo BM left the tractor business, but delivered cabs and transmission parts to Valmet, enabling a smooth structural change in production. Valmet entered new market areas, the most important being the Scandinavian countries, the Netherlands, France and some overseas markets. Valmet could increase its production volume at the Suolahti, Finland plant, and conditions were favourable for the Linnavuori, Finland engine plant (now AGCO SISU POWER).
 
Technically, Volvo BM had more experience with partial powershift transmissions, while Valmet was experienced in synchronised transmissions and 4WD solutions. Both were forerunners in safety cab technology, Volvo emphasising comfort, Valmet ergonomics.
 
The new jointly-developed tractor, the Volvo BM Valmet, got the best of both. For example, the cab was developed in tight collaboration with the Volvo BM Hallsberg cab factory, the new Valmet engine D Series by Valmet Linnavuori works. The design was by Volvo Product Design in Gothenburg, led by the legendary chief designer Jan Wilsgaard, who was in charge of Volvo car design from the Volvo Amazon to the 700 Series. The Volvo BM Valmet tractors were introduced to the press at Eskilstuna in May, 1982 and the production started in Suolahti plant in Finland late 1982.

The most important outcome of the cooperation was the process that joined two industrial cultures, the values of Volvo, quality and safety, combined with the innovativeness and precision manufacturing methods of Valmet. The leading principles were Scandinavian quality, reliability, flexibility and respect for customers.

The recently launched innovations, Valtra Versu with the ultimate powershift and unique driving experience as well as the easy to use Valtra Direct with the Nordic CVT, designed and produced by Valtra, are the latest evidences of the Scandinavian heritage. Uniquely customised, with specific and demanding customer applications they offer high level of performance, reliability and productivity. They are based on this historic agreement, signed 30 years ago.

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