Volvo 2000 Annual Report Download - page 10

8
Volvo Global Trucks
Following the acquisition, the Volvo Group’s truck operations are concentrated in one
unit, Volvo Global Trucks, which incorporates the Mack, Renault and Volvo brands. Volvo
Global Trucks plays a vital role in establishing the Volvo Group’s vision
to be valued as the world’s leading provider of transport solutions.
The concentration of resources and competence enables a more
aggressive and cost-effective approach to new technologies and market
channels, such as telematics and e-business. The product lines will be broadened and at the
same time offer enhanced customer value related to features, quality and customer sup-
port.
The new organization will enable us to benefit from the economies of scale, while at the
same time increase our efforts in the areas of product development and product planning.
The increased volumes will also generate cost savings, mainly attributable to purchasing.
In order to fully utilize the synergies, purchasing, product planning and product develop-
ment is organized in a separate unit, 3P, with total responsibility for coordinating these
vital functions within Volvo Global Trucks.
The gradual integration of the companies and their product programs will involve a
changeover to common product platforms. This means that duplication of investments
will be avoided and production costs can be reduced.
The company’s product program and unique brand identity will be further developed
and in the markets, accordingly, the three strong brand names, Mack, Renault and Volvo,
will be preserved, and continue to act as three competing companies.
Volvo Global Trucks operates in 185 markets and has more than 3,000 service points all
over the world. The industrial structure is also global, with manufacturing operations on
five continents. The total number of employees was approximately 32,000 at December
31, 2000.
Renault V.I.
Renault V.I. (Renault Véhicules
Industriel) is one of the largest
European manufacturers of commer-
cial vehicles, with its origins in the
Renault automobile company that was
founded in 1898, and also in Berliet,
another manufacturer founded in the
same year. Renault V.I. manufactures
all types of commercial vehicles, rang-
ing from light trucks for urban distribu-
tion services to special vehicles and
heavy trucks for long-distance opera-
tions. Renault V.I.’s market share in
Western Europe is more than 12% for
heavy trucks (>16 ton), and nearly 9%
in the 6-16 ton category.
The Midlum, which is a medium-
heavy truck for multi-purpose duties in
an urban environment, was introduced
during 2000, following introduction in
the previous year of the Mascott light
truck, which is designed for a wide
range of applications. The heavy truck
program includes the Magnum, which
has been developed for long-haul
duties in the over-16 ton class, and
the Premium, which is a higly com-
petetive model for both regional and
long-distance service. The Kerax,
which is the third member of the
Renault heavy-truck range, is a robust
vehicle, mainly designed for service
and construction-industry operations.
Renault V.I. also develops and manu-
factures military vehicles.
World Heavy Truck Production 2000, Thousands
DCX
Volvo Group
Paccar
Scania
MAN
International
Iveco
Hino
Mitsubishi
Nissan
Isuzu
Mercedes, Freightliner, Sterling, Western Star
Volvo (77) Renault (34) Mack (35)
Peterbilt, Kenworth, Foden, Daf
174
146
87
51
46
43
37
13
11
9
8
Strong
global
position
Market and
product
comple-
mentarity
Substantial
synergies
Growth
oppor-
tunities
Value
added for
customers
and share-
holders
Merger benefits
Added value for customers
and shareholders
The acquisition of Mack and Renault V.I.
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