Volvo 2003 Annual Report Download - page 14

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12
Business Areas
In 2003, Volvo Trucks presented the new
Volvo FH16. The Volvo FH16 is equipped
with an all-new 16-liter engine, available with
a choice of two power outputs, 610 and 550
hp, making it the most powerful standard
truck ever in Europe. Also in 2003, Volvo
Trucks introduced an entirely new truck, the
Volvo VM, mainly for the South American
market in the 17- to 23-ton class. In addition,
a new generation of the Volvo NH, Volvo FH
and Volvo FM was launched in South
America . With these introductions, the entire
Volvo Trucks product range has been
renewed since 2000.
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.
Volvo Trucks has an extensive network of
dealers and service centers in both Europe
and North America. The distribution network
in Europe was stregthened in 2003 through
the acquisition of Bilia's network of truck
dealers. To further improve its customers’
ability to conduct competitive operations,
Volvo Trucks offers a broad range of services.
During 2003, Volvo Trucks delivered a
total of 75,312 trucks, an increase of 8%
compared with a year earlier. Deliveries
increased by 15% in North America and by
37% in Asia. The strong development in Asia
is largely based on high deliveries to Iran.
To t al market
The total market for heavy trucks in Western
Europe was unchanged during 2003, com-
pared with the preceding year. The markets
in Germany and in the UK strengthened by
6% and 10%, respectively, while the markets
in Italy and France weakened. Eastern
Europe continues to show a positive trend.
The total market for heavy trucks in North
America (Class 8) was unchanged at
179,000 trucks in 2003 compared with the
year-earlier period. The trend during the
fourth quarter showed positive signs in the
vocational segment, however the uncertainty
remains in other segments. The market for
heavy trucks in Brazil rose by 28% compared
with a year earlier.
Business environment
The acquisitions of Mack and Renault V.I. in
2001 were part of the restructuring that has
been under way in the heavy-truck industry
for a long time. In 1965 there were 40 inde-
pendent manufacturers of heavy trucks in
Western Europe; today, there are fewer than
ten. Deregulation and increased globalization
have created very tough competition that is
driving the trend toward fewer and larger
transport companies with increasingly
streamlined operations. As a result, demands
on truck manufacturers are also growing.
Large development resources and rational
production are required in order to meet cus-
tomers’ needs in a cost-effective way.
Market share development
The combined market share for heavy trucks
in Western Europe for the truck operations of
the Volvo Group was unchanged in 2003
compared with the year-earlier period at a
level of 26.6%. Volvo Trucks’ share of the
market increased to 15.2% (14.1) in the
heavy class as a result of the successful new
product range. Renault Trucks’ share of the
market declined to 11.4% in the heavy-duty
segment, down 1.5 points compared with
the year-earlier period.
In North America, the combined market
share of heavy trucks (class 8) declined to
19.8% (20.7). Volvo’s market share amount-
ed to 9.4% (7.8). This increase was due to a
high demand for the new Volvo VN. Mack’s
share of the market fell to 10.4% (12.9) in
2003, an effect of a general decline in the
Number of vehicles invoiced Trucks
2002 2003
Western Europe 87,486 82,672
Eastern Europe 8,803 9,411
North America 36,515 34,756
South America 5,358 5,976
Asia 9,144 16,286
Other markets 9,827 6,888
Total 157,133 155,989
Largest markets Trucks
2002 2003
Registered Market Registered Market
heavy trucks share % heavy trucks share %
Volvo Trucks
US 11,025 7.5 13,711 9.7
Great Britain 5,254 16.9 5,855 17.1
Iran 2,372 n/ a 5,463 n/ a
Germany 4,035 9.3 4,241 9.2
France 4,146 10.2 4,222 11.5
Brazil 4,318 14.7 4,127 13.1
Spain 3,098 12.1 3,861 14.4
Italy 2,805 9.8 2,614 11.2
Renault Trucks
France 15,597 38.5 13,205 36.0
Great Britain 1,123 3.6 1,389 4.0
Germany 927 2.1 948 2.0
Spain 5,233 20.1 4,407 16.4
Mack Trucks
US 20,482 13.6 15,146 10.7
Canada 2,281 10.7 1,724 7.7
Renault trucks decreased by 8%, while deliv-
eries in other parts of the world rose by 6%.
Volvo Trucks
Volvo specializes in heavy trucks, with total
weight above 16 tons and began manufac-
turing trucks in 1928.
98 00 01 03
208 246 238 215
Tot al market heavy trucks, thousands
02
215
99
236
255 257 170 179179309
Western Europe
North America
Western Europe
North America