Volvo 2000 Annual Report Download - page 6

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4
Comments by the Chief Executive Officer
Mack and Renault V.I. in the Volvo Group
Effective January 2, 2001, the Volvo Group is Europe’s largest and the world’s second largest
manufacturer of heavy trucks. Through the acquisition of Mack and Renault V.I., the volumes
of our heavy-truck business have been nearly doubled, with significantly improved volumes
in the medium-heavy segment as well. In the heavy diesel engine sector we are
among the four largest producers in the world.
The new organization that was established in connection with the acquisition
is designed to develop and strengthen the three truck brand names, based on a
common industrial platform. Accordingly – Mack, Renault and Volvo – will
remain competing brands in the market, while purchasing, product planning
and product development is being coordinated in a common structure. The
development and production of engines has been transferred to a separate business unit, with
the task of supplying the entire Volvo Group with engines and other driveline components.
The operations of Mack, Renault and Volvo complement each other well in terms of both
markets and products. This, combined with the new industrial structure and increased volumes,
will generate significant cost savings, mainly within the purchasing area. In the long-term,
the benefits of coordination will increase as we change over to a common basic engine
program and the number of common components increases.
In the beginning of February 2001, AB Volvo repurchased 5 percent of the Company’s
shares, which on February 9 were transferred to Renault S.A. as final payment for the shares
in Mack and Renault V.I. As a result a total of 15 percent of the shares in AB Volvo has been
transferred to Renault S.A.
Successful product introductions
As before, we are working aggressively on product renewal and, during 2000, the business
areas introduced a number of new products that were very well received in the markets. These
introductions included a new series of vocational trucks for the North American market, a new
medium-heavy truck in Europe, a new series of articulated haulers, new diesel engines for
marine and industrial use, and a new coach built on the new platform for our large buses.
In terms of earnings, Marine and Industrial Power Systems, Financial Services, Construction
Equipment and Aero were successful.
Marine and Industrial Power Systems had its best earnings ever and began the most com-
prehensive renewal and broadening of its product program in its history. Financial Services,
Volvo is Europe’s largest and the
world’s second-largest manufacturer
of heavy trucks
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