Volvo 2000 Annual Report Download - page 8

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▲
Fundamental changes in transport industry
6
Industry development
The global trend towards deregulation of markets and international trade is the driving force
behind a fundamental change in conditions for transport operators and providers of commer-
cial vehicles and services. As a result, regional companies with substantially
larger operations are developing through cross-border acquisitions. The
deregulated market also enables the establishment of small entrepreneurial
operations within the transport and construction business.
The global development of the Internet will further increase price and
market transparency, thus fueling the competetive environment. Information
technology can be used to extend and customize the customer offering.
The need for efficiency improvements and economies of scale is driving development in all
parts of the value chain. Operators are increasingly outsourcing services in order to focus on
their core business. Therefore the demand from customers will focus on extended services and
more value-added products. Financing, insurance, leasing, contract service and maintenance are
in increasing demand. Vehicle availability, maintenance and lower fuel consumption are essen-
tial elements in minimizing costs over the product life-cycle.
Volvo participates
actively in transport
industry consolidation