Volvo 2008 Annual Report Download - page 64

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Focus on integration
Integration work of both the Chinese wheel
loader manufcturer Lingong and the road
machinery business line is going according to
plan. The road machinery product portfolio has
been fully Volvo branded.
Investments
The ongoing investment that began in 2007 to
eliminate capacity bottlenecks in the com-
ponent production facility in Eskilstuna, Sweden
started to take effect in 2008.
During the year it was also announced that
the production of centre-mounted backhoe
loaders would move from Poland to Mexico.
This will speed delivery times to the North and
Latin American markets, where the product is
particularly popular, and decrease the impact
of currency fl uctuations.
Furthermore, there were investments an-
nounced in new paint shops in the com pany’s
articulated hauler plant in Braås, Sweden and
in its cab factory in Hallsberg, Sweden. These
will lead to a reduced environmental impact
and quality improvements.
The product portfolio
Volvo CE continues to evlove as a total solu-
tion provider and to develop its segmentation
approach to customer needs. In line with the
Group’s strategy to increase to grow within
soft products, Volvo CE continues to expand
its soft products offering, including remote
machine monitoring systems and uptime serv-
ices.
The rental business has expanded with 15
new rental stores in North America, Europe
and Other markets.
Products launched in 2008 included:
• L220F Hybrid wheel loader prototype
• L45F and L50F mid-sized wheel loaders
• EC60C and EW210C mid-sized excavators
• L180F HL high lift wheel loader
• Feller bunchers for the forestry segment.
Fuel-effi cient technology
At the ConExpo exhibition held in Las Vegas in
March 2008, Volvo CE showcased the indus-
try’s fi rst prototype hybrid wheel loader, the
Volvo L220F Hybrid. The diesel-electric hybrid
drive system offers improved performance
characteristics and reduces emissions and fuel
consumption. To meet the environmental
requirements and emission legislations of the
future Volvo CE is developing a range of Tier IV
engines and has the technology in place to
meet expected bio-fuel environmental legisla-
tion.
New President
Olof Persson was named Volvo Construction
Equipment’s new President in September. He
has an extensive international experience from
ABB, Bombardier and Daimler Chrysler and
was most recently President of Volvo Aero.
Volvo Penta
– continues to capture
market share
Volvo Penta offers complete drive systems
and service for leisure boats, workboats and
industrial applications such as diesel-powered
Continued investments in a new, global •
logistics system.
New European dealer structure •
implemented.
Expanded customer offering of soft •
products.
Secure favorable profi tability also in •
weaker market conditions.
Secure successful implementation of •
new, global logistics structure.
Continue to expand industrial engine •
business to improve balance between
business segments.
Focus on delivery capacity to ensure •
favorable product supply in the market.
Intensify work to ensure a positive •
product cost development.
Establishment of a new global dealer •
network structure.
Continued introduction of soft products •
and service programs.
Outcome 2008 Ambitions 2009Ambitions 2008
VOLVO PENTA
Net sales by market
Volvo Penta, SEK M 2007 2008
Europe 6,798 6,554
North America 2,674 1,947
South America 274 364
Asia 1,624 2,082
Other markets 349 486
Total 11,719 11,433
Engine volumes
Volvo Penta, No. of units 2007 2008
Marine engines 67,333 51,270
Industrial engines 23,728 26,061
Total 91,061 77,331
Key ratios
Volvo Penta 2007 2008
Net sales as percentage
of Volvo Group sales 44
Net sales, SEK bn 11.7 11.4
Operating income, SEK M 1,173 928
Operating margin, % 10.0 8.1
Kalmar Industries is a world-leading manufacturer of
different machines for materials handling and one of
Volvo Penta’s largest industrial engine customers.
Business areas 2008
60