Volvo 2005 Annual Report Download - page 64

60 Volvo Group 2005
The new Renault Magnum was introduced
in February 2005. It features a new chassis,
new engine and gearbox and extensive
improvements in driver comfort. In addition,
fuel consumption was reduced considerably.
A new version of the Renault Premium, a
truck for national transports, was introduced
in September. Among other features, the new
version offers an improved driver cab, new
dri v e l i n e a nd c h a ssis a s w e l l a s b e ing e q u i p p ed
with a more powerful and fuel-efficient
engine.
In October, a new version of Renault
Magnum was shown. It is fitted with a new 13-
liter engine, developing 500hp and meeting
the Euro4/5 with SCR-technology.
Deliveries by Renault Trucks amounted to
74,461 vehicles, which was 6% more than a
year earlier. Deliveries in Europe rose 3% to
60,988 trucks, while deliveries in the rest of
the world increased by 22% to 13,473.
Extensive launches by Volvo Trucks
Volvo Trucks has developed into one of the
world’s largest producers of heavy trucks with
a total weight exceeding 16 tons. Volvo Trucks’
products are marketed in more than 130 coun-
tries. The trucks are used for a wide range of
applications, from distribution in congested
city traffic to heavy-duty construction in desert
heat or timber transport in remote forest-
lands.
Volvo Trucks’ competitive product range
was strengthened further in 2005. At the
beginning of the year, Volvo Trucks launched
the Volvo VT 880 flagship with a 16-liter Volvo
engine in the North American market. Later in
the year, the 16-liter engine was also offered
in the Volvo VN models in North America and
in April, the first D12 engine manufactured in
the US was delivered.
During the autumn, Volvo Trucks rolled out
the new Volvo FH and Volvo FM models with
the new 13- and 9-liter engines. The engines
comply with the forthcoming Euro 4 and Euro
5 emission standards and improvements
include a reduction in fuel consumption of up
to 5%. Moreover, a new generation of Volvo
VM was launched in Brazil and the product line
was expanded with a three-axle model that
handles a total weight of 26 tons.
During 2005, Volvo Trucks delivered
103,696 trucks, an increase of 7% compared
with a year earlier. Deliveries rose 23% in
North America and 2% in Asia, in which the
Middle East accounted for 80% of the vol-
umes. Deliveries in Europe decreased by 1%.
During the year, Volvo Trucks continued to
strengthen its dealer network in Europe,
including the inauguration of the first wholly
owned service facility in Russia, outside St.
Petersburg.
Total markets at high levels
Overall, demand was very high on the markets
in Europe, North America and South America.
The total market for heavy trucks in Europe 27
(EU member countries plus Norway and
Switzerland) rose 9% to 276,700 trucks in
2005, which is a new record level. Registration
in the UK increased by 5%, in France by 21%,
while the market in Germany was up 4% and
in Spain by 10%.
The market for heavy trucks in North
America (Class 8) rose 29% in 2005 to
328,900 heavy trucks, compared with
255,500 trucks in 2004. This was driven by
the continued strong US economy, with rising
transport needs. In addition, demand was
driven by a need to renew truck fleets and
that some customers wanted to purchase
new trucks prior to the new, stricter emissions
legislation becoming effective on January 1,
2007.
The market for heavy trucks in Brazil
declined by 9%.
Price alignment to high demand
As a result of the strong demand in Europe and
North America, the capacity utilization of truck
manufacturers overall was high during the
year. However, the investments in increased
capacity were limited, due in part to supplier
difficulties in meeting the already high pace of
production for new trucks.
Instead of investing in increased produc-
tion, truck manufacturers focused on raising
capacity utilization in existing plants through
various forms of efficiency enhancement
measures and by aligning prices to the prevail-
ing market demand.
The sharp price hikes on certain raw mater-
ials, mainly steel, receded during the year. The
business area succeeded in offsetting the
higher raw material costs through increased
efficiency and active pricing.
Net sales per market
SEK M 2004 2005
Europe 77,431 79,706
North America 35,154 46,129
South America 5,223 7,657
Asia 12,378 13,551
Other markets 6,693 8,353
Total 136,879 155,396
Number of trucks produced
2004 2005
Volvo
Volvo FH 45,008 42,951
Volvo VN, VT and VHD 25,637 32,256
Volvo FM9, 10, and 12 19,154 20,102
Volvo FL 4,979 5,052
Volvo NH 1,169 2,312
Volvo VM 1,607 1,842
Total 97,554 104,515
Mack
Mack CH / CHN 2,006 3,786
Mack CL 170 364
Mack Vision 7,283 9,403
Mack Granite 10,935 16,568
Mack DM 519 365
Mack LE 849 1,238
Mack MR 2,603 3,325
Mack RB 130 23
Other 1,142 1,126
Total 25,637 36,198
Renault
Renault Mascott 11,574 12,461
Renault Kerax 7,063 8,800
Renault Midlum 16,018 15,484
Renault Premium
Distribution 6,432 6,663
Renault Premium Route 10,818 12,328
Renault Magnum 8,801 8,202
SISU 49 0
Total 60,755 63,944