Volvo 2005 Annual Report Download - page 62

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58 Volvo Group 2005
Trucks
– advances
positions
Net sales
as percentage of
Volvo Group sales
01 02 03 04 05
116 .6 155.4117.0
118 . 8
136.9
01 02 03 04 05
1.0 11.74.01.2
9.0
01 02 03 04 05
0.9 7.53.41.0 6.6
Net sales
1
SEK bn
Operating income1, 2
SEK bn
Operating margin
1, 2
%
67%
Outcome 2005
• Extensive product renewal: Mack Pinnacle, Mack
Granite, Renault Magnum, Renault Premium Route,
Volvo FH, Volvo FM and Volvo VM.
• Roll-out of new engines that meet the Euro 4/5
standards. In North America, engines were shown
that meet the US 07 standard.
• The distribution network was strengthened.
• The business area managed to compensate for in-
creased raw material costs through active pricing.
More efficient purchasing and closer cooperation with
suppliers resulted in improved component supply.
Ambitions 2005
• Successful introductions and production start-
ups within all three brands.
• Begin launch of engine series that meets forth-
coming emissions standards in Europe and
North America.
• Continue development of distribution network in
Europe, North America and Asia.
• Deal with increased costs for raw materials, sup-
ply of certain components and balance effects
of currency fluctuations.
Ambitions 2006
• Successful introductions and production
change-overs.
• Introduce engines in all trucks that meet
future emissions standards in Europe and
the US.
• Maintain high pace of activity in the devel-
opment of alternative drivelines.
• Further development of dealer network.
1 Years 2004 and 2005 are reported in accordance with IFRS and 2001, 2002 and 2003 in accord-
ance with Swedish GAAP. See Note 1 and 3.
2 Excluding restructuring costs.