Volvo 2007 Annual Report Download - page 70
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Please find page 70 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.Volvo Penta
– continues to capture market share
By delivering high-tech products with a focus on performance, reliability and
environmental characteristics, and by satisfying customer demands for effi cient
service solutions, Volvo Penta has become a leading global supplier with one
of the strongest brands in the industry.
With approximately 5,000 dealers in 130
countries, Volvo Penta has a unique, strong
global presence.
With technical solutions such as the IPS
system, Volvo Penta generates competitive
advantages for leading global boat manu-
facturers such as Bavaria, Beneteau/Jean-
neau, Cranchi, Sessa Marine, Azimut, Tiara,
Four Winns, Riviera and Intermarine.
Using the IPS system, installa-
tion time can
be reduced
by up to 75%
compared
with a tradi-
tional straight
shaft, resulting
in more effi cient
production. At the same time, boat builders
can offer end-users a quieter, cleaner boat
with up to 30% lower fuel consumption – and
one with signifi cantly better performance and
maneuvering characteristics.
With such world-unique innovations as
Aquamatic sterndrive and Duoprop counter-
rotating propellers, Volvo Penta created and
through the decades further developed the
business segment for marine diesel engines
with sterndrives.
Volvo Penta’s market positions in this seg-
ment were strengthened further in 2007
through the launch of the new
top-end D4-300 and D6-370
models. These engines com-
bine performance with
unique environmental and
comfort features and
contributed to strength-
ened competitive advan-
tages for such world-
leading boat builders
as Fairline, Sunseeker and Princess.
Volvo Penta contributed signifi cant econ-
omies of scale to the Volvo Group’s diesel
engine production, primarily through sales of
industrial engines, which in recent years have
risen sharply. During 2007, Volvo Penta sold
slightly more than 26,000 marine and indus-
trial engines based on the Group’s diesel
engine platforms.
Overall market
The overall market for marine engines
remained strong in Europe, while demand in
North America declined. The general trend in
the market was that demand for smaller
marine engines declined due to lower demand
for smaller sized leisure boats.
The worldwide market for industrial engines
strengthened compared with the preceding
year, partly due to a recovery in China, but also
strong growth in Europe, the Middle East and
South America.
Net sales as percentage
of Volvo Group sales Operating margin1,2, %Net sales1 ,2, SEK bn Operating income1 ,2, SEK M
0706050403
11.710.89.89.17.6
4%
0706050403
10.010.39.610.49.1
0706050403
1,1731,106943940695
1 Years 2004-2007 are reported in accordance with IFRS and 2003 in accordance with prevailing Swedish GAAP. See Note 1 and 3.
2 Years 2006-2007 are reported according to a new reporting structure. See Note 7.
In recent years, Volvo Penta has strengthened its
customer offering of so-called soft products
– including the much-noted joystick, which makes it
easier to dock a boat.
66 Business areas 2007