Volvo 2009 Annual Report Download - page 45

Volvo Trucks 2008 2009
Europe 58,187 19,749
North America 15,887 8,028
South America 12,890 10,349
Asia 13,440 5,573
Other markets 5,548 3,712
Total 105,952 47,411
Mack Trucks 2008 2009
Europe 8 0
North America 12,157 8,235
South America 3,097 1,219
Asia 200 505
Other markets 1,151 1,142
Total 16,613 11,101
Renault Trucks 2008 2009
Europe 63,643 29,396
North America 494 458
South America 1,172 574
Asia 5,252 1,794
Other markets 5,918 5,263
Total 76,479 37,485
chases of low-emission vehicles. Having many
heavy-duty trucks that meet the standards for
low-emission vehicles, UD Trucks has bene-
ted from the program with increased market
share as a consequence. UD Trucks’ share of
the heavy-duty truck market in Japan remained
above 25% for ve consecutive months begin-
ning in June. Full-year market shares were
23.5% (22.6).
Mack Trucks
Economic conditions weighed heavily on the
North American market throughout 2009.
Mack Trucks was particularly impacted by
a severely depressed construction segment,
and production was adjusted in line with low
demand.
The existing fleet continued to age, leading
to greater pent-up replacement demand, but
underutilization of these trucks and ongoing
uncertainty in the business environment was
not supportive of the sale of new trucks.
Successful development
of new technology
Development and testing of the SCR technol-
ogy, used by Mack and Volvo Trucks North
America, to meet the EPA 2010 emissions
standards proceeded exceedingly well
throughout 2009. The process culminated in
November, when the common engine platform
that the brands share became the rst to
receive EPA 2010 certication, allowing deliv-
ery of SCR-equipped customer trucks assem-
bled at both the New River Valley and Macungie
plants to begin.
In the second quarter, Mack heavy-duty
hybrid trucks were delivered to customers,
including the city of New York. Having custom-
ers operate these trucks, which deliver fuel
economy improvements up to 30% and a cor-
responding reduction in greenhouse gas emis-
sions, marks an important step towards com-
mercialization of the technology.
In response to growing demand for low-
emission alternative fuel vehicles, in June
Mack introduced natural gas-powered trucks
for refuse applications.
VECV12008 2009
Europe – –
North America – –
South America – –
Asia 2,744 10,175
Other markets – –
Total 2,744 10,175
1 VE Commercial Vehicles is consolidated (50%) into the
Volvo Group from August 1, 2008.
UD Trucks 2008 2009
Europe 9 0
North America 1,608 853
South America 933 445
Asia 39,089 16,753
Other markets 7,724 3,458
Total 49,363 21,509
Deliveries by market
Focus on exports
Mack also maintained a strong focus on its
international operations. Although truck export
sales as a whole have been impacted by the glo-
bal recession, there remains a strong desire for
American-style trucks in many countries, par-
ticularly for construction and heavy-haul appli-
cations. Mack is determined to capitalize on this
interest via its extensive product range and
access to the resources of the Volvo Group.
Relocation of headquarters
and production
The relocation of Mack Headquarters to
Greensboro, aimed at improving organizational
effectiveness and efciency, was completed in
the third quarter. By the end of November,
Mack highway truck production had been suc-
cessfully transferred from New River Valley to
Macungie to capitalize on the benets of con-
solidated assembly.
A new labor contract with the United Auto
Workers union eliminated Mack retiree health
care liabilities for UAW workers by creating an
independent UAW-managed trust that
assumes this obligation.
VE Commercial Vehicles
VE Commercial Vehicles (VECV) is a joint-
venture company owned by AB Volvo and
Eicher Motors. VECV comprises the entire
Eicher Motors truck and bus operations, while
concurrently the Volvo Group is contributing
its Indian sales operations in the truck seg-
ment as well as the service operations for
trucks and buses. 50% of VECV is consoli-
dated into the Volvo Group.
VECV has a broad product range comprising
light, medium-heavy and heavy trucks and
buses as well as truck chassis, engines and
engine components. With a market share of
over 30% in the medium-duty (5–12 tons)
truck segment, Eicher is India’s third largest
manufacturer of commercial vehicles.
After a weak start to 2009, demand for
trucks in India increased gradually during the
year. Production rates in VECV’s factory had to
be increased several times to new record levels.
In January 2010, VECV launched a new
range of heavy-duty Eicher trucks in India –
Eicher VE series. The ambition is that the new
trucks shall contribute to a signicantly
increased market share in the heavy-duty seg-
ment from today’s modest level of roughly 2%.
41