Volvo 2001 Annual Report Download - page 40

36
BUSINESS AREAS
Buses
Volvo Buses’ product line comprises com-
plete buses, bus chassis and bodies for vari-
ous applications – city and intercity buses
and coaches – and also in more specifically
adapted forms such as mobile homes.
Volvo Buses has renewed its entire prod-
uct range in less than four years. Most of the
new models are based on TX, the company’s
product platform for intercity buses and
tourist coaches. The introduction of plat-
form TX is the largest industrial project ever
in the history of Volvo Buses. The TX plat-
form has made it possible to considerably
reduce the number of parts used in produc-
tion.
Volvo Buses has also significantly extend-
ed its range of facilities within servicing and
financing, so as to be able to offer all-
encompassing customer-tailored transport
solutions with the best total economy. This
makes it possible for the operator to predict
future costs in the greatest detail. In combi-
nation with this, there is a wide range of
financing alternatives such as full-service
leasing.
To satisfy the requirements of customers
who want a complete traffic system com-
bined with the purchase of a fleet of vehicles,
Volvo Buses provides customized compre-
hensive solutions in cooperation with Volvo
Mobility Systems. Customers are offered
planning, system design and mobile informa-
tion systems for traffic control and traffic
information. Volvo Buses has extensive
experience of system solutions for high-
capacity public transport. In 2001, a new,
efficient transport system involving separate
traffic lanes and platforms for boarding and
disembarking from the bus was introduced
in Bogota, Colombia.
Total market
The overall market for heavy buses
decreased during 2001. The traditionally
strong Volvo markets, for example the US and
UK, were affected adversely by the general
downturn in the economy, which was accel-
erated by unexpected events. The terror
attacks in September, the foot and mouth
epidemic in the UK and the difficulties in
the Middle East affected travel patterns and
tourism with a resulting negative effect on
coach markets in Europe and North
America. South America also experienced a
slowdown, emphasized by financial develop-
ments in Argentina.
Business environment
Within OECD, deregulation and privatiza-
tion have altered the operating conditions
for many operators. New actors are penetrat-
ing and conquering previously closed areas,
and competition between companies is
increasing. There is a move towards fewer
and larger operators, who impose high
demands on good economic overview and
better potential for focusing on their core
operations. They demand from suppliers of
transport solutions first-class total solutions
that encompass vehicles, as well as service
and financing arrangements. Moreover,
Volvo Buses must satisfy operators’ funda-
mental requirements for products offering a
higher degree of reliability, increased uptime
and lower operating costs.
In terms of competitors, Iveco agreed to
acquire the shares owned by Renault in
Irisbus during 2001. MAN acquired
97 98 99 00 01
Net sales, SEK bn
10.6 14.3 14.7 17.2 16.7
0
97 98 99 00 01
Operating income,
SEK M
550 385 224 440 (524)
0
97 98 99 00 01
Operating margin, %
5.2 2.7 1.5 2.6 (3.1)
Net sales as
percentage of
Volvo Group sales
9 %