Volvo 2007 Annual Report Download - page 33
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Please find page 33 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.ing in signifi cance, driving profi tability in the
region. The customer structure is varied and
consists of multinational corporations and
Western European transport companies as
well as a growing proportion of Eastern Euro-
pean transport and logistics companies.
The customers emphasize the complete-
ness of the offering when they are asked to
explain why they chose the Volvo Group. Many
point to the support of fi nancing through Volvo
Financial Services as a major strength. In
many of the countries, as much as 60% of
the trucks are fi nanced through Volvo Finan-
cial Services.
Broad-based expansion of
the service network
To ensure that the customers’ vehicles are
constantly kept rolling, the Volvo Group is
expanding its network of service centers
along the major transport routes. It is important
to offer service close to the customers, and
there is great potential to expand the spare
parts and service business.
The expansion of service capacity under
Volvo direction, Volvo Truck Centers, is cur-
rently being pursued throughout Europe. In
2006, there were 185 Volvo Truck Centers in
Western Europe and in 2010 that fi gure will
be 198. In the next few years, major invest-
ments will be made in the service network
throughout Eastern Europe, and the number
of Volvo Truck Centers will increase from
today’s 37 to 55 by 2010.
With the aim of further strengthening its
market position and meeting increased need
for effi cient transport, the Volvo Group
open ed a new Volvo Center in the Polish city
of Mlochów, about 30 kilometers outside
Warsaw. It consists of service centers, a train-
ing center and various representation offi ces
for the use of Volvo Trucks, Volvo Construc-
tion Equipment, Volvo Buses and Volvo Finan-
cial Services.
Poland is an important market for interna-
tional transport companies with its population
of nearly 40 million and its location between
Germany in the west and the Baltic States,
Belarus, the Ukraine and Russia in the east.
There are many indications that Poland will be
one of the Volvo Group’s fi ve largest markets
in Europe in the near future.
Building new plant outside Moscow
In order to take advantage of rapid growth and
meet demand, the Volvo Group decided dur-
ing the year to also invest slightly more
than SEK 900 M in a new assembly
plant for trucks in Russia.
The new facility,
locat ed about 200
kilometers southwest of Moscow in Kaluga, is
expected to be completed at the beginning of
2009. The plant will have enough capacity for
10,000 Volvo trucks and 5,000 Renault trucks
per year operating at full capacity.
Since 2003, Volvo Trucks has had a smaller
assembly plant for trucks in Zelenograd, just
outside Moscow. The plant has a capacity of
approximately 500 vehicles per year and is
already operating at full capacity.
Additionally, Volvo Construction Equipment
acquired land in connection with the truck
operations’ plant in Kaluga in June. The intent
is to begin manufacturing construction equip-
ment there in a few years.
Transports between east and west
Increased infrastructure investments contribute to
the creation of a network of transport corridors
between the countries in Western Europe and the
growing economies in the East.
Region Central East Europe
Region East Europe
A global group 2007 29
”Our strategy is based on being close to the cus-
tomers and knowing their business. We offer mod-
ern trucks, a broad range of services including
fi nancing, access to competent service and a com-
prehensive service network. Our employees are
also crucial to success. They are very committed
and prepared to go the extra mile to satisfy the
customers,” says Roger Alm.
Comprehensive product offering