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1979 Valmet acquires Volvo tractors

Product history

1980 Valmet 602 - Turbothree
1980t 1 Read more
1980 Valmet 1203 – Supercharger
1980 Valmet 1203 Read more
1982 Volvo BM Valmet 05 Series
1982 2 Read more

More about

Contacts with Volvo
1979 1985 Volvo BM Read more

When Volvo BM made a strategic decision to cease production of tractors and agricultural machinery, successful negotiations were carried out with Valmet. However, the company wished to remain a component supplier in order to reduce the impact on employment in Eskilstuna, Sweden. Accordingly, Volvo BM continued to supply Valmet with gears and cabs up until 1990.

The design of a new range of tractors designated Volvo BM Valmet had already commenced by the time contracts were signed in September 1979. The tractor operations of Volvo BM were transferred to a company called Scantrac, 50 percent of which was owned by Valmet. Valmet was later to become the outright owner of Scantrac.

In May 1982 Valmet introduced the red 04 models ranging from 49 to 67 horsepower. One month later a completely new 05 line of 65 to 95 horsepower tractors was introduced. Ín 1983 Volvo BM Valmet tractors became market leaders not only in Finland and Sweden but in all the Nordic countries.

The new line combined the durability and high quality of Volvo BM tractors with the more advanced, modern operating characteristics of Valmet tractors. Production of the new line commenced in Brazil in the mid-1980s and continues today.

An entirely new model range was introduced in 1985 ranging from 53 to 163 horsepower. The combining of Valmet’s and Volvo BM’s tractor production has been one of the most successful in the industry.

In 1986 Valmet and Steyr-Daimler-Puch AG signed a letter of intent to co-operate on the design and manufacture of a range of engines and a series of tractors from 90 to 140 horsepower. The project progressed positively, but in 1989 the banks owning Deutz and Steyr required Deutz and Steyr to instigate a co-operative venture causing Valmet to withdraw. Based on knowledge gained from working with Steyr, Valmet proceeded to develop the Mezzo and Mega series.

The biggest industrial contract between Finland and Sweden results in the birth of the Nordic Tractors

The biggest industrial contract between Finland and Sweden...

The biggest industrial contract between Finland and Sweden results in the birth of the Nordic Tractors

... results in the birth of the Nordic Tractors.

The deal included also forest tractors

The deal included also forest tractors.