Volvo 2007 Annual Report Download - page 68
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Please find page 68 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.Buses
– meeting customers’ increased
environmental needs
Environmental issues are at the top of the agenda at the business
area as well as at its customers. Emissions requirements are
continually being tightened. It is the ambition of Volvo Buses to
not only meet these requirements but to surpass them.
Volvo Buses offers several models with emis-
sions levels that are far below required levels
and which meet both Euro 5 and the special
EEV requirements. In order to contribute to
reduced environmental impact, increasingly
more operators and decision-makers are
already choosing buses that meet Euro 5,
although that requirement does not become
effective until 2009.
Environmental technology
To meet the environmental requirements of
today and the future, Volvo Buses is using a
new generation of advanced diesel engines
with SCR (Selective Catalytic Reduction) that
signifi cantly reduce emission levels and result
in higher performance and lower fuel con-
sumption.
Volvo has also developed a hybrid bus that
has generated substantial interest in the mar-
ketplace. The bus is a parallel hybrid, where a
small diesel engine and an electric engine
work in tandem and braking energy is reapplied.
At bus stops and red lights, the diesel
engine is turned off and the bus starts up
using only the electric engine. Hybrid technol-
ogy provides the greatest fuel savings in city
traffi c, where there are many stops and starts.
Fuel savings under such circumstances can
exceed 30%. During 2008, six double-deck-
ers using hybrid technology will be delivered
to Transport for London for fi eld-testing.
Volvo Buses’ product portfolio also con-
tains buses that can operate on both natural
gas and biogas.
Another effective means of reducing car-
bon-dioxide emissions is to create effi cient
Bus Rapid Transit systems. Volvo Buses is a
world-leading supplier of buses for such sys-
tems. During the year, the company received
an order for 187 buses for a new system in
Cali, Colombia.
Coach of the year 2008
The business area received proof in 2007 that
its investments in recent years to develop its
tourist coaches have paid off. The Volvo 9700
was named Coach of the Year in Europe, with
the jury especially citing its high level of pas-
senger comfort, fantastic driving characteris-
tics and innovative safety solutions.
Uneven developments in world markets
The overall global market for buses remained
stable at a high level, but was characterized by
large regional differences. In Europe, the
development was mixed, with increased
demand in Southern and Eastern Europe,
while there was a slight decline in the Nordic
countries and the UK. In Mexico, increased
competition from low-cost airlines resulted in
a downturn in demand. The coach market in
the US was negatively impacted by advanced
purchases during 2006 ahead of the new
emissions requirements that went into effect
in 2007. Demand remained high for buses in
Asia.
Fewer deliveries
Volvo delivered 9,916 (10,360) buses and bus
chassis during 2007. One explanation for the
decline is a downturn in the overall market in
Net sales as percentage
of Volvo Group sales Operating margin1,2, 3, %Net sales1,3, SEK bn Operating income (loss)1,2,3, SEK M
0706050403
16.617.316.612.712.0
6%
0706050403
1.44.32.82.0(3.0)
07060504
03
231745470253
(361)
1 Years 2004–2007 are reported in accordance with IFRS and 2003
in accordance with prevailing Swedish GAAP. See Note 1 and 3.
2 Excluding write-down of shares in Henlys Group 2003 and 2004.
3 Years 2006-2007 reported according to a new reporting structure.
See Note 7.
Thanks to advanced technology, Volvo Buses can
offer products that already today meet the coming
Euro 5 emissions regulation.
64 Business areas 2007