Volvo 2008 Annual Report Download - page 58

Product renewal with comprehensive
safety solutions
During 2008, Volvo Trucks renewed its prod-
uct range. Focus has been on safety, driver
comfort and new drivelines. The new safety
features have been developed to help the
driver avoid accidents in stressful traffi c situ-
ations. Almost 90% of all accidents are due to
the human factor. When looking at single acci-
dents, 10–20% is due to tired drivers. Accord-
ingly, Volvo Trucks introduced features like the
Driver Alert Support System and the Lane
Changing Support to reduce these fi gures.
Volvo Trucks have also started fi eld tests with
hybrid refuse trucks – an example of technol-
ogy breakthrough.
The positive trend for “business
around the truck” continues
Total service solutions to support the truck cus-
tomer account for about one fourth of Volvo
Trucks’ total sales. The share grows continuously.
A positive effect is that the aftermarket business
is less volatile and it can therefore to some extent
balance a downturn in new truck volumes.
The weak development in the global econ-
omy affected Volvo Truck customers in differ-
ent ways. Lack of liquidity and diffi culties in
getting loans was a reality for many of them.
Volvo Trucks works closely together with Volvo
Financial Services to be able to offer fi nance
solutions in the diffi cult market environment.
Active role in societal development
Volvo Trucks’ ambition is to take an active part
in the debate regarding the development of
transport solutions for a sustainable society.
This encompasses all main areas where trans-
portation impacts society. One example is the
work with alternative fuels and hybrid solu-
tions. Another is the fulfi lment of the latest
emission requirements. In this area great
attention is devoted to the development of
new engines and to all main production sites
being CO2-neutural by the end of 2009.
Dealing with the rapid downturn
After a number of years with strong growth,
demand started to weaken in most of Volvo
Trucks’ markets around the world during the
autumn. The growth in demand for transporta-
tion declined and uncertainty regarding the
development of the world economy increased.
Volvo Trucks implemented a number of
measures aimed at cutting costs and reducing
tied-up capital. Rapid changes from high util-
ization and extra shifts to drastically lower vol-
umes were needed in the industrial system.
The development has been a challenge for
everyone involved and signifi cant reductions in
staffi ng levels necessary.
The downturn makes it necessary to
increase effi ciency and streamline internal
processes while providing opportunities for
strong companies to advance their positions
on the market.
Renault Trucks
– a year of contrasts
During the beginning of 2008 production
rates were at levels never reached before,
Deliveries by model
Renault Trucks 2007 2008
Renault Maxity 6,507 4,427
Renault Master 11,033 9,583
Renault Mascott 6,223 7,295
Renault Kerax 8,336 8,901
Renault Midlum 11,819 10,467
Renault Premium ranges 27,404 28,330
Renault Magnum 8,088 7,455
Other 32 21
Totalt 79,442 76,479
Deliveries by market
Renault Trucks 2007 2008
Western Europe 59,097 54,944
Eastern Europe 9,488 8,699
North America 517 494
South America 1,107 1,172
Asia 4,216 5,252
Other markets 5,017 5,918
Total 79,442 76,479
During the year, fi eld tests were commenced with
the hybrid refuse truck Renault Premium
Distribution Hybrys Tech.
RENUALT TRUCKS
Improvement of service quality well •
underway.
Production capacity increased to •
record rate, then adjusted to lower
demand.
New models in construction segment •
and roomier Renault Magnum.
Cost reductions in line with the strate-•
gic objectives.
Defend profi tability by managing •
downturn.
Maintain high product and service •
quality.
Optimize production fl exibility. •
Develop market share.•
Improve service for all customers. •
Increase production capacity. •
Successful launch of new models. •
Achieve breakthrough for cost reduc-•
tions.
Outcome 2008 Ambitions 2009Ambitions 2008
Business areas 2008
54