Volvo 2006 Annual Report Download - page 13

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An industry in flux
The transport industry is moving through a process of change in which
increasingly stringent environmental standards are a major driving force.
Substantial investments are required for R&D programs involving new tech-
nologies to reduce emissions from vehicles and for the development of
alternative fuels and drivelines. To meet these challenges, consolidation is
in progress among manufacturers through mergers and acquisitions.
In mature markets in the US and Europe, consolidation in the truck indus-
try has been in progress over a number of decades and has made substan-
tial progress. In other regions or sectors – such as Asia or the construction
industry – the pressure to consolidate is expected to increase.
Meanwhile, new competitors have emerged as major regional players in
growth markets with the aim of becoming global players. Restructuring
creates the potential for the Volvo Group to further strengthen its positions
in each business area by means of acquisitions.
Growth markets
The Volvo Group’s goal is to be the world’s leading supplier of commercial
transport solutions. Volvo currently has well-established positions in the
European and North American markets. However, the most rapid growth is
occurring in regions in which the Group had very limited operations ten or 15
years ago. The Volvo Group plans to expand in these markets – in Asia, for
example.
China and India are examples of markets that are already considerably
large and will prove even more important for the Volvo Group’s future growth.
In addition, Eastern European markets are showing steep growth and the
Group is well positioned to capitalize on expansion in these markets.
Heavy truck registrations, > 16 tons Three strong markets, heavy trucks
05 06030204
Europe
North America
295277255229229
349308249178180
Vehicles, thousands
Consolidation – European truck manufactures
Mercedes
Volvo
Gräf u .Stift
Lancia
Scania
Ford
BMC
Henschel
Willeme
Seddon
Guy
Steyr
Commer
Atkinson
Dennis
Unic
Saurer
Fiat
Leyland
Krupp
ÖAF
Berliet
Bussing
DAF
Magirus
Berna
OM
ERF
Astra
Hotchkiss
Barreiros
Bernard
Bedford
Saviem
Pegaso
FTF
Dodge
MAN
Foden
Volvo Group
DaimlerChrysler
Paccar
MAN
Scania
Iveco
1966 2006
A global group 2006 9