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SEGMENTS 2009
2009 was characterized by weak demand for trucks in the Group’s main markets in Europe,
North America and Japan.
Trucks
– low demand in the Group’s main markets
rder intake increased
gradually in Europe and
Japan during the second
half of the year, however,
the increase came from
very low levels. The North
American market weakened further from the
very low levels of the two preceding years. In
some emerging markets, such as Brazil and
China, demand increased during the second
half of the year, to a certain extent as a conse-
quence of governmental stimulus measures.
Total market
The total market for heavy-duty trucks in
2009 in the EU’s 27 countries plus Norway
and Switzerland amounted to 164,000 vehi-
cles, a decline of 49%. The decline was the
result of lower activity in the European econo-
mies with lower freight volumes as a conse-
quence. The truck manufacturers imple-
mented measures to adapt production to the
new, much lower demand level and to reduce
inventories of new trucks.
The continued weak development in the
North American economy affected the market
adversely. The total market declined by 38% to
115,000 trucks, compared with 185,000
trucks in the preceding year.
The total market for heavy-duty trucks in
Japan declined by 46% to 18,700 vehicles
(34,900). Among the major markets in Asia,
China rose with 22% to a record level of about
605,500 trucks (>14 tons), compared with
496,000 a year earlier. The market for heavy-
duty trucks in India amounted to 124,500 vehi-
cles in 2009 (159,600).
In Brazil, the total market declined by 15%
to 67,000 heavy trucks.
63% (67)
Net sales as percentage of
Volvo Group’s sales
1) Years starting 2006 are reported according to a new
reporting structure. See note 7.
2) Excluding adjustment of goodwill in 2006.
The truck operations consist of Volvo Trucks,
Renault Trucks, UD Trucks, Mack Trucks and VECV
in India (50% direct and indirect ownership). The
product offer stretches from heavy-duty trucks for
long-haulage and construction work to light-duty
trucks for distribution.
Number of employees
37,575
Position on world market
In total, the Volvo Group is Europe’s largest and the
world’s second largest manufacturer of heavy trucks.
Brands
Volvo, Renault, UD, Mack and Eicher.
0908070605
(10.8) SEK bn
%
12.2 15.214.811.7
(7.8)6.08.18.77.5
Operating income
1,2
Operating margin
1,2
Operating income and operating margin
1,2
0908070605
138.9 SEK bn203.6187.9171.3155.4
Net sales1
Net sales by market
Trucks, SEK M 2008 2009
Europe 111,12 0 65, 874
North America 26,696 21,563
South America 14,732 12,490
Asia 37,540 26,943
Other markets 13,554 12,069
Total 203,642 138,940
Deliveries by market
Trucks 2008 2009
Europe 121,847 49,145
North America 30,146 17, 574
South America 18,092 12,587
Asia 60,725 34,800
Other markets 20,341 13,575
Total 251,151 127,681
09080908
12.0%13.7%5.5%5.9%
Volvo
Trucks Renault
Trucks
09080908
7.4%7.3%7.4%8.9%
Mack
Trucks
Volvo
Trucks
0908
23.5%22.6%
UD
Trucks
09080908
10.6%10.8%13.2%14.8%
Volvo
Trucks Renault
Trucks
Market shares
in Europe,
heavy-duty trucks
Market shares
in Western Europe,
medium-duty trucks
Market shares
in North America,
heavy-duty trucks
Market shares
in Japan,
heavy-duty trucks
O
38