Volvo 2003 Annual Report Download - page 15

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Net sales per market Trucks
SEKM 2001 2002 2003
Western Europe 60,841 61,406 63,097
Eastern Europe 5,526 6,424 7,004
North America 33,630 33,721 28,151
South America 3,993 3,277 3,464
Asia 4,659 5,919 9,206
Other markets 7,919 8,005 6,047
Total 116,568 118,752 116,969
Number of trucks produced Trucks
2001 2002 2003
Volvo
Volvo FH 28,920 31,880 33,720
Volvo VN and VHD 112,860 14,300 17,080
Volvo FM9, 10, and 12 14,580 15,300 17,480
Volvo FL 6,690 5,640 4,820
Volvo NL and NH 2,400 1,490 1,940
Volvo VM – – 400
Total 65,450 68,610 75,440
Mack
Mack CH 7,298 7,540 1,744
Mack CL 984 288 64
Mack Vision 2,122 2,523 4,811
Mack Granite 1,099 4,592 6,217
Mack DM 703 528 458
Mack DMM 111 47 —
Mack LE 1,393 1,084 964
Mack MR 3,015 1,668 2,034
Mack RB 488 103 130
Mack RD6 4,532 2,298 921
Mack RD8 86 35 54
Other – – 1,122
Total 21,831 20,706 18,519
Renault
Renault Mascott 11,528 11,446 9,797
Renault Kerax 7,967 7,677 6,674
Renault Midlum 12,764 12,545 12,801
Renault Premium 17,918 16,150 15,567
Renault Magnum 7,027 7,848 7,516
SISU – – 45
Total 57,204 55,666 52,400
1Includes other truck models produced in the United States.
segments for both vocational trucks and eco-
nomic haul trucks. Mack has been able to
retain its leadership position in its core seg-
ments of construction and refuse.
In Brazil, Volvo’s market share declined to
24.6% (31.0).
Financial performance
Net sales of Volvo’s truck operations
amounted to SEK 116,969 M in 2003.
Adjusted for currency effects, sales in-
creased by 5% compared with 2002.
Operating income in 2003 amounted to
SEK 3,951 M (1,189). The improvement
across the three truck brands, Mack, Renault
and Volvo, is largely related to increased
margins due to cost rationalization. The
strong customer values in the new Volvo
range, increased market shares and
increased efficiency has contributed to the
improved earnings in 2003. These positive
effects were partly offset by negative curren-
cy effects and higher costs for research and
development. Earnings improved in North
America, where profitability developed favor-
ably for both Volvo and Mack despite
adverse market conditions. In Europe, Volvo
Trucks’ strong performance continued and
both Renault Trucks and Volvo Trucks report-
ed improved earnings.
Production and investments
Production of trucks in 2003 amounted to
75,440 Volvo trucks (68,610), 52,400
Renault trucks (55,666) and 18,519 Mack
trucks (20,706).
On June 9, Volvo Trucks signed a joint
venture agreement with China National
Heavy Truck Corporation, CNHTC, for pro-
duction of trucks. Production will start during
the first quarter of 2004 in CNHTC’s prem-
ises in Jinan, in the Shandong Province. The
initial capacity will be 2,000 trucks per year.
Volvo’s product range in China will comprise
the Volvo FL, Volvo FM9 and Volvo FM12.
The ambition is to increase volumes to
10,000 trucks per year by 2010 with a high
level of local integration.
The transfer of production of Mack high-
way trucks from Winnsboro to New River
Valley was completed on May 1, 2003.
On July 11, all conditions for Volvo’s
acquisition of Bilia’s trucks and construction
equipment operations, Kommersiella Fordon
Europa AB (KFAB), were met. KFAB is a
leading service supplier and dealer of Volvo
trucks and construction equipment, with
operations in the Nordic countries and in
several other countries in Europe. The acqui-
sition of the strong KFAB dealerships and
workshop network will significantly strength-
en Volvo Trucks’ European distribution system.
Ambitions for 2004
The ambition in 2004 is to continue the
development of the distribution networks in
Europe and North America, including the
integration of the acquired former Bilia dis-
tribution network in Europe. In 2004, the
unique brand identities and product ranges
of the three strong brand names Volvo,
Renault and Mack will be developed further.