Volvo 2002 Annual Report Download - page 3

The year 2002
Significant events
Two years of integration
Since Volvo’s acquisition of Mack and
Renault Trucks a competitive structure
has been put in place, purchasing gains
are being realized and the plans for a
consolidated engine program are final-
ized. We have also established plans for
shared vehicle architecture and defined
the strategy for our brands. The customer
service network is being strengthened by
the on-going dealer optimization in North
America and by enhanced financial ser-
vices. All in all, the synergies that we
aimed for have been achieved.
AB Volvo celebrated its 75th anniversary
On April 14, 2002 Volvo celebrated its
75th anniversary. On that day 75 years
ago, the first series- manufactured Volvo
car rolled off the production line on the
island of Hisingen in Göteborg. Since
then Volvo has developed from a small
local industry to one of the world’s lead-
ing manufacturers of heavy trucks, buses,
construction equipment, marine engines
and aerospace components, with more
than 70,000 employees worldwide and a
presence in over 125 countries.
Volvo CE establishes production
facility in China
Volvo Construction Equipment (Volvo CE)
has decided to establish a production
facility, for the manufacture of construc-
tion equipment in Shanghai, China. The
new facility is scheduled to start opera-
tions in spring 2003 and will initially be
used for the assembly of crawler excavators.
Volvo Buses chosen as
preferred supplier
In June 2002 Volvo Buses was chosen as
preferred supplier by two of the leading
bus operator groups in Mexico. The con-
tract gives Volvo Buses a leading position
within the upper segments in the Mexican
market. The deliveries involve 1,800
buses, started mid-2002 and will con-
tinue until mid-2005. The total framework
agreement amounts to approximately
SEK 3.0 billion.
Volvo Penta introduced telematics
During the third quarter, Volvo Penta
launched the first ever telematic solution
for the boating industry. This satellite-
based communications network improves
security, safety and thereby enhances the
enjoyment onboard regardless of the size
of boat. When installed onboard, the sys-
tem connects the boat and its crew to
Volvo Action Service, which allows con-
stant communications with mainland.
Production start at Volvo CE’s new
factory in Poland
On September 13 Volvo CE officially
opened its new factory in Poland. The
facility is located in the same plant as
Volvo’s bus production in Wroclaw and
serves as a global center for production
of the new backhoe loader launched
earlier in 2002.
Volvo and Mack received engine
approvals from the US Environmental
Protection Agency (EPA)
On September 30 Volvo received a con-
ditional approval from the EPA in the US
to manufacture and sell trucks with its
EPA02-compliant VED12 diesel engine
after October 1, 2002. Mack’s ASET
Highway (C-EGR) engine family was cer-
tified the EPA02 standard by EPA in July
and Mack’s ASET Vocational (I-EGR)
engine family received conditional EPA02
certification in September.
Renault Trucks in engine cooperation
with Dong Feng Motors in China
Renault Trucks has concluded an agree-
ment covering technology transfer per-
taining to truck engines with the Chinese
truck manufacturer Dong Feng Motors.
The agreement is intended to provide
Dong Feng Motors the possibility of
equipping its trucks with Renault engines.
Industrial changes in the North
American truck operations
The production of Mack highway trucks in
Winnsboro, South Carolina, was trans-
ferred to the Volvo plant in New River
Valley, Virginia during the fourth quarter of
2002. The Winnsboro plant was closed in
November and the first Mack production
vehicle came off the line at the Virginia
facility on December 16. The new-gener-
ation Volvo VN went into production during
the fourth quarter. The New River Valley
plant is now producing both Mack high-
way trucks and the new Volvo VN series.
The Volvo Group in euro
2001 2002
Net sales, EUR M 19,540 19,333
Operating income, EUR M (73) 310
Income after financial items, EUR M (202) 220
Net income, EUR M (159) 152
Income per share, EUR (0.38) 0.36
Dividend per share, EUR 0.87 0.87
2002: EUR 1.00 = 9.1596 SEK, annual average
2001: EUR 1.00 = 9.2434 SEK, annual average
Board of Directors Report