Volvo 2006 Annual Report Download - page 65

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• Strong market acceptance of new
Pinnacle and Granite models.
• Complete vehicle range prepared for change-
over to new US’07-compliant engines.
• Hybrid Mack Granite model delivered to U.S.
Air Force as part of joint development program.
• Strategic enhancement of dealer network
– particularly in Western regions of the US –
continued; dealers continued to invest in new
and existing facilities.
Ambitions 2006
• Manage the challenges throughout oper-
ations arising from the market cycle, while
maintaining profitability and cost control.
• Continue working with the completion of
Mack Trucks’ product renewal.
• Continue the development of the North
American dealer network to strengthen
sales, customer support and aftermarket
services.
• Continuing growth in Mack Trucks’ inter-
national operations.
• Successful introductions and production
change-overs.
• Introduce engines in all trucks that meet
future emissions standards in Europe
and US.
• Maintain high pace of activity in the
development of alternative drivelines.
• Further development of dealer network.
Outcome 2006 Ambitions 2007
Number of trucks produced
Mack Trucks 2005 2006
Mack CH / CHN 3,786 3,880
Mack CL 364 584
Mack Vision 9,403 8,394
Mack Granite 16,568 17,019
Mack Pinnacle – 1,076
Mack LE 1,238 937
Mack MR 3,325 3,901
Mack DM 365 1
Other 1,149 976
Total 36,198 36,768
Number of trucks delivered
Mack Trucks 2005 2006
North America 32,346 32,793
South America 2,503 2,628
Asia 121 75
Other markets 1,252 1,342
Total 36,222 36,838
Also in early 2007, Mack introduced the
US’07 compliant version of its popular low-
cab-over-engine models for the refuse and
concrete industry.
Mack offered its concrete customers an
important safety improvement in 2006 with
the introduction of the Mack Road Stability
Advantage (RSA) system for concrete mixers.
De signed to reduce the potential for rollover
incidents and enhance profitability, the full
electronic stability system is the first of its kind
in the vocational segment of the heavy-duty
truck market in North America. In addition to
making RSA available to concrete mixer cus-
tomers, Mack also announced in 2006 that it
was making the system standard on all of its
highway tractors.
Aftermarket services
During 2006, a number of new product pro-
grams were launched through which Mack
Trucks – in cooperation with transport compa-
nies – provides support and assistance regard-
ing the availability of spare parts and service.
These include MV Preferred and Mack Credit
Card offerings, which simplify the purchase of
spare parts and service repairs, while simultan-
eously providing customers with tools for
reporting, monitoring and controlling costs.
Dealer network
In addition to the optimal development of in-
house operations, the distribution network
continues to be improved to be able to manage
variations in economic conditions. Since 2001,
Mack Trucks’ independent dealers have jointly
invested more than USD 50 M, or approximately
SEK 370 M, in new facilities, modernization and
extension of existing facilities and retraining
programs for sales personnel. Combined with
the extended offering of accessories and ser-
vices, these improvements permit dealers to
raise sales of aftermarket products and services
and boost the level of absorption throughout the
network. This will dampen the effects of the
expected significant decline in sales of new
trucks during the first half of 2007.
Business areas 2006 61