Volvo 1997 Annual Report Download - page 27

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25
Volvo was the third-largest manufacturer of heavy trucks in the world
The number of medium-heavy and heavy trucks delivered by Volvo in 1997
increased by 8%, to 68,980 (63,680). In Europe, where Volvo had approxi-
mately 55% of its production, its share of the market for heavy trucks declined
to 15.3% (16.7). Its share of the market for Class 8 trucks in the United States
rose to 9.7% (9.1), while its market share in the heavy-class segment in Brazil
declined to 23.3% (24.3). As in the preceeding year, Volvo was the third-largest
manufacturer of heavy trucks in the world.
Implem entation of a global product concept
The modular concept, which involves maximizing the number of common com-
ponents, is currently being developed into a global concept with three model ver-
sions. The number of articles used in production has been reduced from approxi-
mately 40,000 to about 35,000 today, and is to be further reduced to 25,000 not
later than the end of the year 2000. With the modular concept that is being deve-
loped and controlled centrally, higher productivity and benefits of scale are being
achieved throughout Volvo Trucks’ commercial and productivity systems while
the flexibility to meet various customer demands is retained.
Cooperation with Mitsubishi in the light- and
medium-heavy truck segm ents
Volvo Trucks’ business concept will be further broadened through active involve-
ment in the light- and medium-heavy truck segments. In the light-truck class
(3.5 to 7.4 tons total weight), Volvo will cooperate with Mitsubishi to distribute
the Mitsubishi Canter model, a truck designed for lighter distribution transports
in cities.
With the aim of achieving
long-term custom er rela-
tions, sales financing is
becoming increasingly
more important. One third
of worldwide truck sales
are financed in this m an-
ner.
During 1997 Volvo
Trucks Finance North
Am erica carried out a
financing agreem ent
covering 350 trucks to
Am erican Freightways.