Volvo 2003 Annual Report Download - page 20

18
Business Areas
Volvo Penta
Volvo Penta offers complete power systems
and service for leisure boats, workboats and
industrial applications such as power-gener-
ating equipment. Volvo Penta operates with-
in three areas of activity: Marine Leisure,
Marine Commercial and Industrial.
By supplying technologically superior
products focused on performance and oper-
ational reliability, and being sensitive to cus-
tomer demands for effective service solu-
tions, Volvo Penta has developed a global
leadership and one of the industry’s
strongest brands. With more than 5,000
dealers in some 130 countries, Volvo Penta
has a uniquely strong global presence.
The year 2003 was the most comprehen-
sive product introduction period in the histo-
ry of Volvo Penta and it includes the launch
of the completely new generation of medium-
heavy marine diesel engines, D4 at 210 hp
and D6 at 310 hp. These electronic diesel
engines, launched with new stern drives and
specially-adapted propellers, feature a num-
ber of technical solutions that make the
engines faster, more powerful, cleaner and
quieter than their predecessor.
The D4-210 and D6-310 are developed
for both leisure boats and commercial boats
in the size class of about 22 to 45 feet. This
is a performance diesel segment in which
Volvo Penta is the market leader.
The new D3 engine, which is the marine
version of Volvo Cars’ successful diesel
engine for passenger cars, was also
launched in 2003. D3’s advantages in terms
of weight, noise level and fuel consumption
will open new segments for Volvo Penta and
it will also provide a future alternative to out-
board engines.
In 2003, Volvo Penta also launched the
D2-75 diesel engine together with a new
four-blade folding propeller for sailing yachts.
To tal market
The world market for marine and industrial
engines was relativeley stable during 2003,
although the situation varied considerably in
different parts of the world. The demand in
Europe has been relatively strong, while the
total demand in North America has been
weaker. An increase of the North American
demand was, however, noted in the second
half of 2003. Demand for industrial engines
in China has continued to rise.
Business environment
Environmental issues are gaining increasing
importance in the industries in which Volvo
Penta is active. Environmentally, Volvo Penta
is well positioned, particularly as a result of
the favorable environmental characteristics
of the diesel engines launched in 2003. All
engines already fulfill the comprehensive
environmental standards planned for Europe
and the US in 2006 and 2007. In addition,
Volvo Penta’s new engines also feature
exceptionally good values with regard to fuel
consumption and noise levels.
The D12 engine contributed during the
year to increased sales for Volvo Penta,
among other segments to car and passenger
ferries. These types of vessels are often
operated in traffic in urban environments or
in the vicinity of other built-up areas, which
means that operators often place higher
demands on exhaust emission standards
than legally required. Consequently, the
D12’s very low emissions level has strength-
ened Volvo Penta’s competitiveness.
In China, Volvo Penta was selected as
engine supplier to a number of newly built
tourist boats that will traffic one of China’s
large systems of inland waterways. Since the
inland system represents an important
reserve of fresh water the local Chinese
authorities conducted a very thorough
evaluation of the engine’s environmental
99 00 01 03
5.8 6.6 7.4 7.6
Net sales, SEK bn
99 00 01 03
314 484 658 695
Operating income*, SEK M
99 00 01 03
5.5 7.3 8.9 9.1
Operating Margin*, %
Net sales as percentage of Volvo Group sales, %
*excluding restructuring costs
*excluding restructuring costs
02
7.7
02
647
02
8.4
4%