Volvo 2008 Annual Report Download - page 61

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Deliveries by model
Mack Trucks 2007 2008
Mack CH / CHN 149 1,144
Mack Vision 1,885 1,370
Mack Granite 8,888 6,469
Mack Pinnacle 4,210 3,906
Mack LE 608 1,289
Mack MR 1,689 1,689
Other 1,192 746
Total 18,621 16,613
Deliveries by market
Mack Trucks 2007 2008
Europe 08
North America 13,592 12,157
South America 3,183 3,097
Asia 243 200
Other markets 1,603 1,151
Total 18,621 16,613
The expression “Built like a Mack truck” is often
used and an acknowledgement of the trucks’
strength and endurance.
the third quarter of 2007 continued through
the end of the year.
Restructuring
A plan launched in August 2008 aimed at
optimizing the Volvo Group’s North American
truck operations includes the relocation of
Mack’s head offi ce and all support functions
including product planning, product develop-
ment and purchasing from Allentown, Penn-
sylvania to the Volvo Group’s facility in Greens-
boro, North Carolina, and a concentration of
Mack’s truck production to the plant in
Macungie, Pennsylvania.
Strong dealers
The company’s dealer network has been
strenghtened in recent years, thanks in part to
signifi cant investments in new facilities. Mack
ranked highest in customer satisfaction for
dealer service, according to the J.D. Power
and Associates 2008 Heavy-Duty Truck Cus-
tomer Satisfaction Study. For the most part
dealers continue to do quite well thanks to
their parts and service operations.
Product development
In early 2008, a new prestige truck, Titan by
Mack, was introduced. The model, developed
specifi cally for heavy haulage and construc-
tion work, is equipped with the new 16-liter
Mack MP10 engine certifi ed to the US’07
emissions standards. This truck puts driver
environment and comfort in focus and is
designed to handle the toughest conditions –
for example, at mines, in forestry work and on
construction sites. Delivery of the Titan by
Mack began in late 2008.
Customer response to all of the new Mack
products, especially the MP engine series as a
whole and the fuel economy improvements
they deliver in particular, continued to be very
positive.
Mack is well advanced in all aspects of the
implementation of new emission reugulations
in 2010. A signifi cant number of trucks
equipped with Selective Catalytic Reduction
(SCR) were placed in customer hands for test-
ing in 2008, with excellent results.
Capacity adjustments
A strike in the fi rst quarter of 2008 by UAW at
the New River Valley plant stopped practically
all production there for almost two months.
Once a new agreement was reached and pro-
duction lost as a result of the strike made up,
capacity at the NRV plant as well as the plants
in Macungie, PA and Hagerstown, MD was
adjusted to a level consistent with market
demand. Approximately 1,300 employees in
the American production system were laid off
towards the end of the second quarter with
additional downward adjustments made at
year end.
Buses
– the city bus of the future
is already here
Volvo Buses took a major step towards a
cleaner urban environment when the company
during the year introduced two bus models
equipped with the Volvo Group’s new hybrid
technology. Within a few years, hybrid buses
are expected to dominate the city bus market.
All aspects of US’10 project well •
advanced; response to SCR test trucks
very positive.
Lower overall truck fl eet utilization and •
the continuing weak construction
industry impacted aftermarket.
Growth of international business •
impacted by challenges in two key
markets.
Comprehensive North American •
restructuring plan to improve effi ciency
and effectiveness.
Financial condition of Mack dealer •
network strong despite low new truck
sales levels.
Execute on cost reduction and adjust •
production to ensure inventory levels in
line with demand.
Focus on optimizing cash fl ow. •
Remain aggressive on price realization. •
Implement key aspects of restructuring •
plan with an eye towards long-term
effi ciency.
Ensure smooth transition to US’10 emis-•
sion standards and leverage completely
renewed, highly fuel effi cient Mack
products.
Prepare for US’10 introduction and •
promote SCR technology.
Improve aftermarket profi tability. •
Develop soft product business. •
Continue growth of the business •
outside North America.
Launch a product cost-reduction •
project to address and offset increasing
raw materials prices and emissions-
related technology costs.
Outcome 2008 Ambitions 2009Ambitions 2008
MACK TRUCKS
The expression “Built lik
used and an acknow
Business areas 2008
57