A strong Icelandic market is said to be behind
Gone are the days when Iceland’s fishing industry was required to keep the country’s economy afloat. Tourism has grown rapidly in recent years. In 2016, 1.8 million visitors visited Iceland; in 2017, this number surpassed two million. When you consider that Iceland’s total population is 350,000 (roughly the population of a small European city), these are big numbers.
This has led to a construction boom in Reykjavik and other larger settlements. The number of government infrastructure projects has increased, particularly with regard to new hotels, apartments and roads, and the strength of the Icelandic Krona has meant the imported cost of construction equipment is much lower.
Ahead of the curve is Reykjavik-based Volvo dealership Brimborg, which has been thriving due to the market pick-up over the last three years. In response, it has invested €10 million in a new, state-of-the-art facility in Hádegismóar, on the outskirts of the capital. Construction is well underway, with an opening date set for summer 2018.
“The new headquarters, which will be known as ‘Veltir’, will help us to achieve an even greater market share for Volvo, better service availability to our customers, less waiting time and more skilled mechanics,” says Kristinn Mar Emilsson, general manager of Volvo commercial vehicles and equipment at Brimborg.
Whereas the current premises at Bíldshöfði shares space with the multi-brand car dealership arm of Brimborg, Veltir will be used solely for selling and servicing the Volvo commercial brands: Volvo CE, Volvo Trucks, Volvo Buses and Volvo Penta. It will also include Veltir Express, which will provide oil, trailer and tire management services.
The total floor space will span 4,000m² – twice the space Volvo commercial has at Bíldhöfði. The increased size and better location also means greater accessibility for customers.
Along with state-of-the-art equipment like a 10-tonne gantry crane, jack lifts, brake tester and lubrication pits, the new facility will feature a vertical storage lift to improve spare parts storage. Built by Weland Lagersystem of Sweden, the 11-metre-high warehouse lift will not only optimise space, but also dramatically improve efficiency due to its automated operation.
“The warehouse is in the basement and from there the employees will fill up the vertical storage lift,” says Emilsson. “When a part is needed, a robot will select the appropriate shelf and send it up. This allows us to reduce time and improve employee working conditions.”
Brimborg is keen to highlight that the introduction of robotic technology will not endanger job security; in fact, it plans to expand employee numbers. When the new facility opens, Brimborg will have increased its number of employees in the commercial department from 27 to 45, including eight more mechanics.
“We care about our employees,” says Emilsson. “The average worker stays at Brimborg for many years. It’s a family-owned company. There is easy access to the CEO, Egill Jóhannsson, who is the son of the company’s founder. The slogan of Brimborg is ‘A Safe Place to Be’; that means it’s a safe place for our employees, our customers, our partners and our society.”
The name of the new headquarters, ‘Veltir’, is more than an individual identity for the heavy equipment arm of Brimborg; the name carries a lot of history in Iceland.
“Veltir is the old brand name for Volvo,” says Emilsson. “2018 marks 30 years since Brimborg became Volvo’s dedicated dealer in in the country, so it’s a perfect time for the name to come back. A lot of our customers still remember the Veltir name; I hope the new facility will make them proud. Veltir will be more independent and valued as a proper Volvo dealership; the relationship with Volvo and the positioning of the new facility will help to establish us better. We will continue to train our mechanics to provide the best service possible and continue to deliver the highest quality products for our customers.”
