Volvo 2007 Annual Report Download - page 65
Download and view the complete annual report
Please find page 65 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.Manage the challenges throughout •
operations arising from the market
cycle while maintaining profi tability and
cost control.
Continue working with the completion •
of the product renewal.
Continue the development of the North •
American dealer network to strengthen
sales, customer support and after mar-
ket services.
Continuing growth in the international •
operations.
A strong focus on controlling operating •
expenses.
Signifi cant progress achieved with •
introduction of US’07 MP engine range,
and the new TerraPro model series.
The fi nancial condition of the dealer •
network continued to be strong.
Sales outside North America up about •
25%.
Prepare for US’10 introduction and pro-•
mote SCR technology.
Improve aftermarket profi tability.•
Develop soft product business. •
Continue growth of the business out-•
side North America.
Launch a product cost-reduction •
project to address and offset increasing
raw materials prices and emissions-
related technology costs.
Ambitions 2007 Outcome 2007 Ambitions 2008
as a result of economic realities including
weakness in the freight environment and the
drop-off in housing construction, which
affected many Mack customers. However,
this weakness was partially offset by continued
strength in commercial construction.
Mack continued to make signifi cant
progress in its effort to grow the company’s
business outside North America. International
sales were up about 25% over 2006, and
double the 2004 volume. This growth was
particularly strong in South America, the Mid-
dle East and Australia, and will continue to be
in focus in 2008.
Production system
As announced in late 2006, production and
employment were signifi cantly reduced at
both the Macungie, Pennsylvania, and New
River Valley, Virginia, plants in response to
reduced demand after the pre-buy.
The Macungie plant experienced minor dis-
ruptions associated with the transition to the
new 2007 emissions-compliant products early
in the year. At the plant in New River Valley –
which undertook an industrial optimization
program in conjunction with the product
changeover – interruptions extended into the
fourth quarter, when production began to sta-
bilize.
Deliveries by model
Mack Trucks 2006 2007
Mack CH / CHN 3,879 149
Mack CL 572 29
Mack Vision 9,535 1,885
Mack Granite 16,940 8,888
Mack Pinnacle – 4,210
Mack LE 945 608
Mack MR 3,849 1,689
Other 1,118 1,163
Total 36,838 18,621
Deliveries by market
Mack Trucks 2006 2007
North America 32,793 13,592
South America 2,628 3,183
Asia 75 243
Other markets 1,342 1,603
Total 36,838 18,621
Business areas 2007 61