Volvo 2007 Annual Report Download - page 26
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Please find page 26 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. 22 A global group 2007
Strong economic growth in Asia and contribu-
tions from acquired companies have meant that
the region’s importance for the Volvo Group has
grown considerably –
during 2007, over 15%
of the industrial oper-
ation’s revenue was
generated there, in
comparison to slightly
below 8% in the previ-
ous year.
With an established presence in the world’s
three most economically signifi cant regions,
the advantages of being global become
increasingly clear. Weak growth on one mar-
ket can be offset by strong growth in another
part of the world.
Nissan Diesel integrated
The largest acquisition is the Japanese truck
manufacturer Nissan Diesel. Volvo bought
13% of the company in March 2006, increased
its holdings in the autumn of 2006. In the
spring of 2007 Volvo made an offer for the
outstanding shares in the company,
which was listed on the Tokyo
Stock Exchange at the time.
Nissan Diesel was founded
in 1935 and for more than 70
years, Nissan Diesel has devel-
oped and marketed a broad range
of light, medium-heavy and heavy
trucks, as well as buses, bus
chassis, engines, vehicle
components and specialized
Strategic position
in Asia
In the past year, the Volvo Group has advanced its position in Asia
– a prioritized region with a high rate of growth. This is in line with
the strategy of establishing a strong third market in addition to
Europe and North America.
vehicles. Nissan Diesel has dealers in nearly
70 countries worldwide.
Nissan Diesel was consolidated into the
Volvo Group on April 1, 2007. During the nine
months that the company belonged to the
Volvo Group in 2007, Nissan Diesel delivered
38,184 trucks and buses compared with
52,637 the preceding year. During April to
December 2007, Nissan Diesel contributed
with sales of SEK 20,308 M to the Volvo
Group.
“Nissan Diesel will benefi t from the Volvo
Group’s collective resources and expertise.
Nissan Diesel contributes its experience of
medium-heavy trucks and comprehensive
expertise in hybrid technology,” says Pär
Östberg, who has assumed responsibility for
the Volvo Group’s truck operations in Asia.
Nissan Diesel’s products and expertise
form a valuable complement to the Group’s
truck business. Nissan Diesel, the foundation
of the Group’s Business Area Asia, is well
positioned in Japan and the rest of Asia,
where the Volvo Group sees signifi cant growth
potential. A merger offers both parties even
better opportunities to learn and benefi t from
each other’s knowl-
edge and
resources.
Now, intensive
efforts are under
way to tie Nissan
Diesel into the truck
development of Volvo 3P, engine development
and manufacturing in Volvo Powertrain and
purchases through the Volvo Group. These are
some of the integration gains that in a few
years will amount to slightly more than SEK 1.8
billion annually. A major portion of these advan-
tages is a result of increased volumes that will
offer better purchasing terms, but integration
gains can also be found in product develop-
ment, engines and drivelines. Other benefi ts
will arise through both companies acquiring
access to each other’s dealer and service net-
works, primarily in Asia, but also in other parts
of the world.
Nissan Diesel’s products and expertise form a valuable
complement to the Group’s truck business. Nissan Die-
sel, the foundation of the Group’s Business Area Asia,
is well positioned in Japan and the rest of Asia, where
the Volvo Group sees signifi cant growth potential.
Stro n