Volvo 2001 Annual Report Download - page 39

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35
manufacturers are also growing. Large devel-
opment resources and rational production
are required in order to meet customers’
needs in a cost-effective way.
During 2001 several mergers and cooper-
ations were established. Navistar and Ford
started a joint venture for medium-duty
trucks, Cummins and Paccar signed a long-
term supply agreement for heavy-duty
engines, and DaimlerChrysler and Raba are
to start joint production of heavy trucks.
Market development
Volvo Global Trucks’ total deliveries during
2001 amounted to 155,311 vehicles, a
decline of 17% compared with 2000.
In Europe, deliveries from Volvo Global
Trucks amounted to 98,041, down 9%. In
the medium-heavy segment, Renault's share
of the market in Western Europe increased
to 17.1%.
In North America, Volvo Global Trucks
delivered a total of 34,645 vehicles, a decline
of 40% compared with a year earlier. In
South America, however, Volvo Global
Trucks’ deliveries rose 13% to 5,789. Volvo
Global Trucks gained market share in North
America in 2001. At the end of 2000,
Volvo’s share of the heavy truck market was
10.6% and Mack’s was 12.7%. By the end of
2001, Mack’s market share had risen to
14.3%, while Volvo’s fell slightly to 10%.
Financial performance
Net sales amounted to SEK 120,140 M
(118,114 pro forma).
The total number of orders for Volvo
Global Trucks for the year 2001 was 12%
below the figure for the preceding year.
Orders in Europe were down by only 4%,
and in North America by 35%.
Operating income, excluding restructur-
ing costs, decreased to SEK 1,040 M
(2,886 pro forma). The decrease is mainly
attributable to the significant market reduc-
tion and price pressure in North America
partly offset by a positive effect from the
integration of the truck companies.
Cash flow for the year was positive, par-
ticularly during the fourth quarter.
Restructuring
The restructuring program announced in the
first quarter of 2001 is developing according
to plan and during 2001 the following
actions were taken: personnel reductions as a
direct result of the market decline in North
America, integration of purchasing and
engine development, decision to close down
Mack’s assembly plant in Winsboro, closure
of Volvo’s assembly plant in Peru, early
retirement plans in Renault and dealer
restructuring in the US.
As a result of these actions restructuring
charges of SEK 3,106 M were reported in
2001.
Production and investments
Production of trucks in 2001 amounted to
65,450 Volvo trucks (82,010), 57,086
Renault trucks (61,158) and 21,831 Mack
trucks (33,376). Production of the new
Mack truck commenced during the spring,
and the new Renault vehicles went into pro-
duction during the autumn of 2001. The
new range of Volvo trucks will be phased into
production during the first quarter of 2002.
The production capacity in North
America was reduced significantly in 2001,
both as a result of the decision to close down
Mack’s Winnsboro plant but also as a result
of a large number of down-days at Mack’s
and Volvo’s plants in North America.
Investments were kept on a low level.
Ambitions for 2002
The ambition in year 2002 is to successfully
and rapidly integrate the truck operations
within Volvo, Renault and Mack, and to fur-
ther build on the unique brand identities and
product programs of the three already strong
brand names. Another focused area will be
to continue the implementation of the opti-
mization programs initiated in 2001.
Net sales per market Trucks
SEK M 1999 2000 2001
Western Europe 32,750 33,383 64,262
Eastern Europe 2,265 3,158 5,532
North America 22,303 17,201 33,747
South America 2,190 3,111 3,994
Asia 2,010 3,432 4,683
Other markets 1,492 1,911 7,922
Total 63,010 62,196 120,140
Number of trucks produced Trucks
1999 2000 2001
Volvo
Volvo FH 25,880 32,720 28,920
Volvo VN and VHD135,440 23,400 12,860
Volvo FL7, 10, 12 and
FM7, 10, 12 13,090 15,310 14,580
Volvo FL 7,040 7,890 6,690
Volvo NL and NH 3,210 2,690 2,400
Total 84,660 82,010 65,450
Mack
Mack CH 13,652 7,298
Mack CL 1,089 984
Mack Vision 5,417 2,122
Mack Granite 25 1,099
Mack DM 1,162 703
Mack DMM 195 111
Mack LE 1,185 1,393
Mack MR 2,340 3,015
Mack RB 527 488
Mack RD 7,761 4,532
Mack RD8 23 86
Total 33,376 21,831
Renault
Renault Mascott 11,982 11,373
Renault Kerax 6,834 8,003
Renault Midlum 14,792 12,809
Renault Premium 19,341 17,871
Renault Magnum 8,209 7,030
Total 61,158 57,086
1Includes other truck models produced in the United States.
In spring, Mack Trucks launched the
new Granite, a versatile truck for con-
struction applications.