Volvo 2002 Annual Report Download - page 14

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12/13
Business Areas
FH and FM trucks, designed for long-haul
transports, and manufactured and mar-
keted in North America. The Volvo NH is
another heavy-duty truck based on the
same platform, the NH is developed for
the South American market. The Volvo FL
is a medium-heavy truck for local trans-
ports.
Volvo Trucks’ products are marketed in
more than 130 countries. The greater part
of the sales take place in Western Europe
and in North and South America. In 2002,
Volvo Trucks had 14.1% of the market for
heavy trucks (>16 tons) in Western
Europe, and 7.5% of the market for heavy
trucks (>15 tons) in the US.
Volvo Trucks has an extensive network of
dealers and service centers in both Europe
and North America. To further improve its
customers’ ability to conduct competitive
operations, Volvo Trucks offers a broad
range of services. Dynafleet, Volvo’s infor-
mation-technology-based transport infor-
mation system, constitutes a growing per-
centage of Volvo Trucks’ business.
To t al market
The total world market for heavy trucks
reached an all-time-high in 2002 of
880,000 units (785,000). The increase
was due to a substantially higher demand
in China. After two very good years, the
total market for heavy trucks in Western
Europe declined by approximately 11% to
214,000 units in 2002. The decline was
mainly due to lower demand in Germany,
France and Great Britain.
In North America total deliveries of
heavy trucks (class 8) amounted to
180,000 vehicles, an increase of 5%
compared with 2001. This was due to a
peak in demand during the middle of the
year related to prebuys prior to new US
emission regulations.
The total market for heavy trucks in
Asia increased in 2002 mainly due to the
substantially increased demand in China,
up 110,000 units.
Business environment
The acquisitions of Mack 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
independent manufacturers of heavy
trucks in the world; today, there are fewer
than ten. Deregulation and increased global-
ization have created very tough competition
that is driving the trend toward fewer and
larger transport companies with increas-
ingly streamlined operations. As a result,
demands on truck manufacturers are also
growing. Large development resources
and rational production are required in
order to meet customers’ needs in a cost-
effective way.
Market share development
Total deliveries for Volvos truck opera-
tions amounted to 157,133 vehicles dur-
ing 2002, an increase of 1% compared
with 2001.
In Europe, deliveries from Volvo and
Renault Trucks amounted to 96,289
trucks, down 2%. The combined market
share in Western Europe for Volvo’s truck
operations was 27.3% for heavy trucks,
making the Volvo Group Europe’s largest
supplier of heavy trucks.
In North America, Mack and Volvo
delivered a total of 36,515 vehicles, an
increase of 5% compared with a year
earlier. The combined market share in
class 8 through November fell to 20.9%
Number of vehicles invoiced Trucks
2001 2002
Western Europe 90,460 87,486
Eastern Europe 7,581 8,803
North America 34,645 36,515
South America 5,789 5,358
Asia 6,603 9,144
Other markets 10,233 9,827
Total 155,311 157,133
Largest markets Trucks
2001 2002
Registered Market Registered Market
heavy trucks share % heavy trucks share %
Volvo Trucks
USA 13,964 10.0 11,025 7.5
Great Britain 6,052 18.3 5,254 16.9
Brazil 4,209 14.1 4,318 14.7
France 5,558 12.2 4,146 10.2
Germany 3,941 7.7 4,032 9.3
Spain 3,553 13.6 3,098 12.1
Italy 2,872 10.6 2,543 9.6
Renault Trucks
France 16,462 35.7 15,597 38.5
Great Britain 2,341 7.1 1,123 3.6
Germany 884 1.7 927 2.1
Spain 4,693 17.9 5,233 20.1
Mack Trucks
USA 20,351 14.6 20,482 13.6
Canada 1,945 11.4 2,281 10.7
Aftersales services are provided in more
than 80 countries.
Volvo Trucks
Volvo is specialized in heavy trucks, with
total weigths above 16 tons and began
manufacturing trucks in 1928.
During 2002 the new series of long-
haulage trucks – the Volvo FH – and the
regional distribution and construction
trucks – the Volvo FM – were launched on
the markets. The new models are
equipped with new engines, new gear
systems and a completely new driver
environment.
In August 2002, the new Volvo VN
trucks were introduced. The Volvo VN is
based on the same platform as the Volvo