Volvo 2007 Annual Report Download - page 17
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Please find page 17 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Profi table growth
To regularly evaluate potential acquisitions that could strengthen •
the Group’s position in strategic markets and in strategic product
segments, as well as investments that could increase capacity.
The expansion of the dealer and service networks, with a particular •
focus on rapidly growing markets.
Focus on actions during a business cycle. •
Increased growth rate in areas involving supplemental services.•
Product renewal
Invested about SEK 11 billion in research and development during •
the year.
New generation of engines. •
CO• 2-neutral trucks for seven types of renewable fuels.
New generations of construction equipment. •
Light-weight designs by Volvo Aero. •
Volvo Penta introduced the IPS drive system for larger boats.•
Product renewal
Ongoing focus on research and development to create new •
products with increased customer value.
To handle both production of existing products and launch new •
products during a boom in the business cycle.
To further develop the service range, to help balance sales of •
vehicles and equipment, which are more cyclical in nature.
Internal effi ciency
Group-wide program for improvements in productivity initiated. •
Integration processes for acquired operations commenced. •
Identifi cation of future competencies.•
Decisions on capacity-increasing investments in heavy diesel •
engines, trucks and construction equipment.
Internal effi ciency
To further increase the focus on productivity improvements. •
To undertake measures to promote a competitve product cost. •
To establish rolling three-year plans for employees’ skills •
development.
Realization of aquisition synergies.•
Execute decided investments for increased production capacity •
and improved productivity.
Implemented in 2007 Aims for 2008
Profi table growth
The average annual growth rate for the Volvo Group has been 9.2% •
over the last fi ve-year period.
During the same period, the average operating margin has been 6.7% •
per year.
The Group acquired Nissan Diesel, Lingong and Ingersoll Rand’s •
division for road development equipment, and signed a letter of intent
with Eicher Motors to form a joint-venture for production of trucks and
buses in India.
The Group has established a strong position in Asia. •
A global group 2007 13