Volvo 1999 Annual Report Download - page 15

13
The market trend being experi-
enced by Volvo Trucks and other
truck manufacturers is toward ever larger
and stronger customers who cover increas-
ingly broad geographical areas. The
customers – conveyors – are concentrat-
ing to a larger degree on their core
business, which is imposing increased
demands for greater commitments on
the part of truck manufacturers. The
focus is shifting from the purchase price
of a vehicle to its total life-cycle cost, in
which the purchase more and more often
comprises a number of related services. In
its product program Volvo Trucks is
seeking to continuously develop increas-
ingly full-coverage, customer-specific
transport solutions whereby the customer
gains better control over total costs and is
also able to utilize vehicles more effi-
ciently.
The product line has been developed for
customers with needs in the field of
heavy and medium-heavy transports
involving heavy trucks in the 16-ton-and-
over total-weight class and medium-
heavy trucks in the 7.5-ton to 16-ton
class. The Volvo FH, with a broad area of
applications in the area of heavy long-
distance transports, serves as the basis for
Volvo Trucks’ global module program.
The Volvo FH is sold in all parts of the
world except North America. Its new
technology, operator comfort, safety and
best operating economy resulted in the
“Truck of the Year 2000” award for the
Volvo FH 12 in January 2000 in Europe.
Other models based on the same concept
are the Volvo FM, designed for regional
and civil engineering transports, the Volvo
VN for the North American market, and
the Volvo NH, introduced in 1999 which
mainly is designed for the South
American market. In the medium-heavy
class the Volvo FL is being sold. Volvo’s
dealers are also offering the Mitsubishi
Canter light truck in seven European
countries through a distribution agree-
ment with Mitsubishi.
Volvo Trucks’ line of soft products is
growing rapidly. It consists primarily of
such financing services as installment
Volvo FH12
contracts, financial leasing, operational
leasing and dealer financing. In addition,
insurance, service and maintenance
contracts are offered separately or in
combination with the financing services
in most markets. Total solutions that
include all costs of a vehicle in the form of
a fixed transport-price per kilometer are
becoming increasingly common.
An upgraded version of Volvo Trucks’
IT-based system for transport informa-
tion, Dynafleet 2.0, was introduced
during 1999. With the aid of Dynafleet a
trucking company can coordinate all of
the operations of a large number of
vehicles in a highly effective manner.
Dynafleet is being used in more than
1,000 vehicles in Europe.
Volvo also offers short-term leasing of
trucks, mainly in Great Britain under the
BRS trademark, but also in other parts of
Europe.
Volvo is one of the world’s largest
producers of heavy trucks. Close to 90%
of the company’s sales take place in
Western Europe and North America.
Dynafleet 2.0
Volvo VN
Trucks