Volvo 2001 Annual Report Download - page 38

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34
Renault Midlum, which was launched in
2001, is a highly flexible truck for medium-
heavy transports that was designed specifi-
cally for city traffic. The Renault Mascott, a
light truck, was introduced a year earlier.
The heavy-duty segment (>16 tons)
includes the new Renault Magnum that was
introduced in 2001. It is designed for long-
haul transports. The Renault Premium is a
versatile truck for use in both regional trans-
ports and long-haul service. The Renault
Kerax, the third heavy-duty truck model, is a
rugged truck designed for short construction
and service transports.
Renault Trucks has a strong international
presence, with 2,000 dealers and service cen-
ters throughout the world, of which 1,350
are located in Europe. These facilities offer a
broad program of competitive products and
services.
Volvo Trucks
Volvo began manufacturing trucks in 1928.
Vehicles with total weights of more than 16
tons, all based on the company’s global prod-
uct platform, account for approximately
90% of the production.
More than 200,000 Volvo FH trucks have
been sold since the introduction. The third
generation of the Volvo FH, together with
the second-generation Volvo FM, which was
developed for regional transports and con-
struction, were presented during 2001. The
models have been substantially renewed,
with new engines, new gear systems and a
completely new driver environment, among
other features.
The medium-heavy Volvo FL for local
transports and the Volvo NH, which was
developed for long-haul traffic and construc-
tion applications in the South American
market, are other examples of products in
Volvo Trucks’ program. The Volvo VN, for
long-haul transports, is manufactured and
marketed in North America.
Volvo Trucks’ products are marketed in
more than 130 countries. The greater part of
the company’s sales take place in Western
Europe and in North and South America.
Volvo Trucks had 14.5% of the market for
heavy trucks (>16 tons) in Europe, and
10.0% of the market for heavy trucks (more
than 15 tons) in the US, in 2001.
Volvo Trucks has 250 dealers and 800
service centers in Europe. In North America,
the company has 210 dealers and 440 ser-
vice centers. To further improve its cus-
tomers’ ability to conduct competitive oper-
ations, Volvo Trucks offers a broad range of
services. Dynafleet, Volvo’s information-
technology-based transport information sys-
tem, constitutes a growing percentage of
Volvo Trucks’ business.
Total market
The North American heavy truck market
weakened considerably during the year. Total
retail sales amounted to 170,000 trucks, a
decrease of 34% compared with 2000.
Inventory levels were reduced from a level
of 50,000 trucks at the end of 2000, to
25,000 by the end of 2001.
The total market for heavy trucks in
Western Europe amounted to 237,000
trucks, 4% lower than in 2001.
The Brazilian market, which accounts for
more than two thirds of the South American
truck deliveries, remained strong during the
year, with deliveries of heavy trucks amount-
ing to 30,000, compared with 29,000 in
2000.
Business environment
The acquisitions of Mack Trucks and Renault
V.I. were part of the restructuring that has
been under way in the automotive industry
for a long time. In 1965 there were 40 inde-
pendent truck manufacturers in the world;
today, there are fewer than ten. Deregulation
and increased globalization have created
very tough competition that is driving the
trend toward fewer and larger transport
companies with increasingly streamlined
operations. As a result, demands on truck
BUSINESS AREAS
Number of vehicles invoiced Trucks
200012001
Western Europe 101,098 90,460
Eastern Europe 7,045 7,581
North America 57,933 34,645
South America 5,104 5,789
Asia 6,732 6,603
Other markets 8,657 10,233
Total 186,569 155,311
1Pro forma
Largest markets Trucks
2000 2001
Registered Market Registered Market
heavy trucks share % heavy trucks share %
Volvo Trucks
USA 22,565 10.7 13,964 10.0
Canada 2,835 10.2 2,004 11.7
Brazil 4,032 13.8 4,209 14.1
France 6,323 13.5 5,558 12.2
Great Britain 5,784 17.7 6,052 18.3
Germany 4,689 8.2 3,941 7.7
Spain 3,326 13.0 3,553 13.6
Renault Trucks
France 16,108 34.4 15,733 34.5
Great Britain 2,135 6.5 2,341 7.1
Germany 1,087 1.9 884 1.7
Spain 4,625 18.1 4,594 17.6
Mack Trucks
USA 28,210 13.3 20,351 14.6
Canada 2,848 10.2 1,945 11.4
The new Midlum by Renault Trucks was
introduced during the autumn.