Volvo 2007 Annual Report Download - page 69
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Please find page 69 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.Continue the implementation of the earn-•
ings-improvement program within Volvo
Buses.
Shorten lead times from order to invoicing. •
Further strengthen positions in China and •
India.
All employees shall be involved in the Oper-•
ational Development program.
The improvement program continued.•
New organization and new processes •
have been implemented and contrib-
utes to shorter lead times.
New bus body plant in India and new •
versions of coaches in China have
strengthened positions.
More than half of the employees are •
engaged in the Operational Development
programme, the start for the remaining
employees have been scheduled.
Strong focus on cost control and •
decreased product costs.
Further strengthen aftermarket support •
for customers.
Guarantee successful introduction of •
hybrid technology buses.
Focused strategy for expansion in North •
America.
Ambitions 2007 Outcome 2007 Ambitions 2008
areas where Volvo Buses is normally strong,
such as Mexico, the Nordic countries and the
UK. However, Volvo Buses’ market share in
the Nordic countries and South America
strengthened. Another cause is production
disruptions during the fi rst half of the year in
conjunction with the introduction of several
new models.
Lower earnings
Net sales fell during 2007 to SEK 16,608 M
(17,271 M), primarily due to lower volumes.
Operating income declined from SEK 745 M
to 231, partly due to lower volumes and partly
due to negative currency effects. The curren-
cies in Brazil, Canada and Poland – countries
where Volvo Buses have production – have
strengthened in comparison with the US dollar
and the euro. The result was also hampered by
production disturbances related to product
introductions.
Production start-up in India
During the year, Volvo manufactured 10,840
(10,440) buses and bus chassis. In December,
production commenced at the company’s new
bus body plant in Bangalore, India. Production
there is in the form of a joint-venture company
with Volvo Buses owning 70% and the Azad
Group 30%. This means that Volvo is now
manufacturing complete buses in India, pri-
marily for the domestic market but also for
export.
Deliveries by market
2006 2007
Western Europe 3,081 3,377
Eastern Europe 489 371
North America 1,741 1,547
South America 1,236 1,318
Asia 3,349 2,757
Other markets 464 546
Total 10,360 9,916
Net sales by market
SEK M 2006 2007
Europe 7,924 7,767
North America 4,910 4,630
South America 1,537 1,623
Asia 2,003 1,802
Other markets 897 786
Total 17,271 16,608
Business areas 2007 65