Volvo 2006 Annual Report Download - page 69
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• New products were well received in
the market.
• Good fuel economy in the new engine
program.
• Hybrid concept for heavy truck presented.
• Continued development of dealer network
with twelve new workshops in Europe.
Ambitions 2006
• Manage the expected sharp decrease in
demand in North America.
• Ensure production capacity for a continued
strong European market.
• Continue developing customer relations in
line with the implemented dealer strategy.
• Stronger focus on communicating the
company’s core values.
• 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
Production
In 2006 the number of trucks manufactured
increased, compared with 2005, 106,884
(104,515). In Europe, 56,023 units (48,644)
were manufactured, which was an increase
of 15%.
In the US, manufacturing rose by 16% to
37,281 (32,256), while in Brazil there was a
decline of 1% to 8,286 (8,330).
In conjunction with the introduction of the
new Volvo FH and Volvo FM trucks in 2005,
fewer trucks were manufactured at the begin-
ning of 2006 due to change-over in production
of the new trucks, which resulted in lower deliv-
ery rate, compared with 2005. However, the
loss was recovered during the last few months
of the year and total manufacturing was at the
same level as in 2005.
In the US, manufacturing has been at a high
level and in early 2007 Volvo vehicles and
Mack highway vehicles built at the New River
Valley plant were combined in the same pro-
duction line.
Number of trucks produced
Volvo Trucks 2005 2006
Volvo FH 42,951 41,302
Volvo VN, VT and VHD 32,256 37,281
Volvo FM9, 10, and 12 20,102 20,704
Volvo FL 5,052 4,799
Volvo NH 2,312 556
Volvo VM 1,842 2,242
Total 104,515 106,884
Number of trucks delivered
Volvo Trucks 2005 2006
Western Europe 35,560 39,011
Eastern Europe 7,073 10,217
North America 32,151 37,145
South America 7,723 7,940
Asia 17,678 7,501
Other markets 3,511 3,705
Total 103,696 105,519
In August 2006, the new plant was opened
in Durban, South Africa, at which Volvo FM and
Volvo FH trucks will be assembled.
In Umeå, 58,000 cabs were manufactured
in 2006, which has nearly doubled since 1993
and was a new record.
In 2006 Volvo Trucks announced its inten-
tion to make all production units in Europe car-
bon-dioxide neutral. In 2005 Volvo presented
the initiative to make the truck plant in Tuve,
Göteborg, carbon-dioxide neutral. The invest-
ments also comprise energy deliveries from
windpower plants.
Business areas 2006 65