Volvo 1997 Annual Report Download - page 5

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3
• Increased volume and strong improvement
in operating income.
• Launchings of several model versions.
• Introduction of the Volvo S40 and V40
models in markets outside Europe.
• Presentation in 1998 of first car based
on Volvo’s new large platform.
• Increased focus on fuel efficiency.
• Increased productivity and lower pro-
curement costs.
• Restructuring of the distribution network.
• Worldwide sales-and service organization.
• New, successful product program.
• Quality-awarded production.
• Customer-order-driven production in
Europe and Japan.
• Successively higher operating income
during the year.
• The Volvo 770 is introduced in North
America.
• Assembly plants are established in
Pakistan, India and Tunisia.
• Cooperation in China signed
in January, 1998.
• A global product concept for heavy
trucks will be established.
• Ensure profitability in established mar-
kets; strong growth in new markets.
• Continuing investments in support
services such as financing and leasing,
etc.
• Global product development, production
and sales.
• Modern product program for all types of
transports, from city distribution to con-
struction site transport and long-distance
hauling.
• Broad range of custom-tailored services
and financing.
• Increased volume of business and sig-
nificantly higher operating income.
• Introduction of the Volvo B7R, a new
versatile bus chassis.
• Acquisition of the largest manufacturer of
bus bodies in the nordic region (Carrus Oy)
and agreement covering acquisition of
the leading city bus manufacturer in U.S.
and Canada (Nova BUS).
• Strong international position and local,
customer-oriented global organization.
• Broad product program, with strong
customer focus.
• Heavy investments in new products.
• Leading brand in Western Europe
(>12 tons).
• Satisfactory trend of sales and earnings.
• Acquisition of Champion, a manufacturer
of road graders.
• Letter of intent covering acquisition of
Samsung’s construction equipment bus-
iness is signed in February, 1998.
• New assembly configuration is placed in opera-
tion in articulated hauler factory in Braås, Sweden.
• Continued expansion in growth markets.
• Development of global industrial structure.
• Broadening of product program.
• Increased productivity.
• Strong positions in Europe and North
America constitute a base for growth in
new markets.
• Decentralized organization with wide-
spread marketing and customer contacts.
• Inclusion in the Volvo Group provides
opportunities for increased competitive-
ness.
• Operating loss is converted to a profit.
• New cooperation agreement with
Mitsubishi Heavy Industries covering
distribution of engines.
• New engine program in the KAD series
(Compressor Aftercooled Diesel).
• Increased focus on commercial and
industrial engines.
• Strategic agreements are developed.
• Continued growth in China and South
East Asia.
• Leading supplier of marine engines for
recreational craft in Europe.
• Strong focus on development of complete,
custom-tailored drive systems.
• Second-largest company in the important
Aquamatic segment in the U.S.
• Significantly higher sales and operating income.
• Contract to continue deliveries of engines
for the JAS 39 Gripen military aircraft.
• Participation in new commercial aircraft
engine programs.
• Access to new segment of after-sales market
through majority ownership of The AGES
Group.
• Export programs in Military engines unit.
• Greater efficiency in engine and space
programs and in Engine Services
operations.
• Introduction of gas turbines for industrial
applications.
• High degree of expertise in selected
technology areas.
• Specialization for partnership ventures.
• Broad operations in Aero Space – from
development and production to main-
tenance.
Strengths Significant events in 1997 Objectives 1998–2000
• Continued expansion globally.
• Strengthening of Volvo’s position in the
segment for city buses and tourist
buses in North America.
• Intensified development of environ-
mentally compatible city buses and
transport systems.
• Rationalization of production.