Volvo 2009 Annual Report Download - page 49

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Outcome 2009
Considerably lower capacity utilization.
Company and dealer inventories of new machines were
reduced by 47%.
New organization for improved efciency implemented.
Eco Operator Program introduced.
Increased sales in Asia and Latin America.
Integration of the road machinery business completed.
Continued integration of Lingong according to plan.
Ambitions 2010
Secure market penetration and product adaptation
in BRIC countries.
Integrate Lingong with a joint business plan for a
broader offer in emerging markets.
Prioritize hard and soft products for new markets
and customer segments.
Increase the use of telematics in products.
Optimize the industrial footprint to become more
efcient in production and development.
Ambitions 2009
Adjust production capacity to market demand.
Focus on cash flow.
Improve internal efciency.
Continue to lead the development of fuel-efcient
solutions.
Continue to focus on emerging market opportunities.
Continue integration of Lingong and road machinery
businesses.
Fuel-efficient solutions
The importance of fuel-efcient solutions con-
tinues to grow against the backdrop of
increased environmental awareness and higher
fuel costs. In order to meet future environmen-
tal demands, Volvo CE develops comprehen-
sive fuel-efcient solutions for its products.
There are four distinct components in the total
solution for fuel efciency engines, systems,
operator behaviour and hybrid technology.
A fuel-saving driveline, OptiShift, was intro-
duced for the wheel loaders in the L150F to
L220F range. OptiShift provides for as much
as 15% lower fuel consumption. Another effort
is the Eco Operator Program, which was
launched in April. By training operators in a
more environmentally-friendly way of oper-
ation, emissions and fuel consumption may be
reduced by as much as 25%. These solutions
together with the development of the hybrid
technology gives Volvo a leading role in fuel
efciency.
Volvo CE moves forward with the delivery of
complete solutions for different customer seg-
ments. Among other things, all larger machines
will be equipped with the CareTrack telematics
system together with service of the system as
standard.
Volvo CE continues to launch products and
services that create value for customers.
Among product launches were the demolition
unit EC360HCR, the short-swing excavator
ECR305CL, the medium-sized wheel loaders
L45F and L50F and the ABG7820B and
Net sales by market
Construction Equipment, SEK M 2008 2009
Europe 25,281 12,987
North America 10,195 5,475
South America 2,923 2,578
Asia 13,787 12,957
Other markets 4,091 1,661
Total 56,277 35,658
ABG8820B pavers for medium and large-
scale applications.
Continued focus on synergies
The integration of the road machinery business
line is complete. During 2010, the synergies
between Volvo CE and the Chinese wheel loader
manufacturer Lingong will continue to develop.
45