Volvo 2002 Annual Report Download - page 15

(24.3). In Brazil, however, Volvo is the
market leader in the heavy-duty vehicle
class for the first time with a share of
31.0%. Total deliveries of Mack and Volvo
trucks in South America were down 7%
to 5,358 vehicles.
Financial performance
Net sales of Volvo’s truck operations
amounted to SEK 118,752 M, an
increase of 5% adjusted for changes in
currency exchange rates. The increase in
sales related mainly to higher deliveries in
North America, Asia and Eastern Europe.
Operating income in 2002 amounted to
SEK 1,189 M (1,040, excluding restructuring
costs). The earnings were favorably affected
by improved margins as a result of
improved price realization, positive effects
from the integration of the truck com-
panies, a continued strong performance
from the truck operations in Europe and
cost rationalizations. The earnings of
Volvo’s truck operations during 2002 con-
tinued to suffer from low volumes and
capacity utilization in North America due
to the poor market conditions, although
the demand increased temporarily during
the middle of the year ahead of the new
US emission regulations.
Restructuring
The restructuring program announced in
2001 has developed according to plan
during 2002. Since Volvo’s acquisition of
Mack and Renault V.I., a competitive
structure has been put in place, purchasing
gains are being realized and the plans for
a consolidated engine program are final-
ized. The customer service network is
being strengthened by the on-going deal-
er optimization in North America and by
enhanced financial services. All in all the
synergies that we aimed for have been
achieved.
Production and investments
Production of trucks in 2002 amounted to
68,610 Volvo trucks (65,450), 55,666
Renault trucks (57,204) and 20,706
Mack trucks (21,831). In Europe, produc-
tion of the new Volvo FH and Volvo FM
models commenced during the spring,
and in the US the new Volvo VN went into
production during the autumn of 2002.
The production capacity in North
America was reduced significantly in 2002,
mainly as a result of the closure of Mack’s
Winnsboro plant and also as a result of a
large number of down-days at Mack’s and
Volvo’s plants in North America.
Investments were kept at a low level.
Net sales per market Trucks
SEKM 2000 2001 2002
Western Europe 30,415 60,841 61,406
Eastern Europe 3,158 5,526 6,424
North America 17,048 33,630 33,721
South America 3,111 3,993 3,277
Asia 3,432 4,659 5,919
Other markets 1,911 7,919 8,005
Total 59,075 116,568 118,752
Number of trucks produced Trucks
2000 2001 2002
Volvo
Volvo FH 32,720 28,920 31,880
Volvo VN and VHD 123,400 12,860 14,300
Volvo FL7, 10, 12 and
FM7, 10, 12 15,310 14,580 15,300
Volvo FL 7,890 6,690 5,640
Volvo NL and NH 2,690 2,400 1,490
Total 82,010 65,450 68,610
Mack
Mack CH 13,652 7,298 7,540
Mack CL 1,089 984 288
Mack Vision 5,417 2,122 2,523
Mack Granite 25 1,099 4,592
Mack DM 1,162 703 528
Mack DMM 195 111 47
Mack LE 1,185 1,393 1,084
Mack MR 2,340 3,015 1,668
Mack RB 527 488 103
Mack RD 7,761 4,532 2,298
Mack RD8 23 86 35
Total 33,376 21,831 20,706
Renault
Renault Mascott 11,803 11,528 11,446
Renault Kerax 6,770 7,967 7,677
Renault Midlum 15,185 12,764 12,545
Renault Premium 19,395 17,918 16,150
Renault Magnum 8,254 7,027 7,848
Total 61,407 57,204 55,666
1Includes other truck models produced in the United States.
Ambitions for 2003
The ambition in year 2003 is to continue
the successful integration of the truck
operations within Volvo, Renault and
Mack, and to further build on the unique
brand identities and product programs of
the three already strong brand names.