Volvo 2010 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2010 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Volvo
Renault
Prevost
Lingong
Silver
Sunwin
Eicher
Nova Bus
UD Trucks
A GLOBAL GROUP 2010
STRENGTH FACTORS
Strong brands
By selling products with different brands, the
Volvo Group can penetrate many different cus-
tomer and market segments in mature markets
as well as growth markets.
The Volvo brand, which has been built up over
decades, is one of the world’s best known and
respected names within trucks, buses, construc-
tion equipment, marine engines, industrial
engines and in the aviation industry.
Mack is one of the most well-known truck
brands in North America, while Renault Trucks
holds a special position in Southern Europe. The
UD brand is one of the biggest in the Japanese
truck market.
Prevost sells coaches and Nova Bus city buses
in North America.
The Volvo Group also sells construction equip-
ment under the SDLG brand mainly in China, and
through joint-venture companies, trucks and
buses under the Eicher brand mainly in India and
buses under the Sunwin and Silver brands in
China.
A customer offering at the forefront
The Volvo Group offers customers complete, effi-
cient transport solutions. Products with reli-
ability, durability, good driveability, favorable fuel
efficiency and high environmental performance
are combined with services such as financing,
insurance, various service contracts, accessories
and spare parts that support the core products.
The Volvo Group’s increasingly broad offering
of these services and aftermarket products is
intended to provide for improved competitiveness.
Strong dealers
Through the years, the Volvo Group has invested
considerable resources in building a very strong
dealer network with overall well-developed sales
and service channels. The network consists of
wholly-owned as well as independent dealers.
Thanks to large populations of Group products in
most markets, the dealers have a stable base of
revenues from the important aftermarket with
service and repair.
Strong market positions
The Volvo Group has leading positions globally in
each of its business areas. The Volvo Group is
Europe’s largest and one of the world’s largest
manufacturers of heavy-duty trucks and one of
the largest manufacturers of buses in Europe and
North America. Within construction equipment,
the Volvo Group is the world’s largest manufac-
turer of articulated haulers as well as one of the
world’s largest manufacturers of wheel loaders,
excavators equipment and road development
machines. All in all, the Volvo Group in 2010 was
one of the world’s largest producers of heavy-
duty diesel engines.
Strengthened presence in Asia and
South America
In recent years, the Volvo Group has strength-
ened its position in important growth markets in
Asia and South America through a combination
of organic growth and acquisitions. Among the
acquired companies are UD Trucks in Japan, Lin-
gong (70% ownership) in China and VE Commer-
cial Vehicles (50% ownership) with its Eicher
brand in India. During 2010, 19% of the Industrial
Operations’ net sales were generated in the BRIC
countries (Brazil, Russia, India and China). Alto-
gether, the markets outside Western Europe and
North America accounted for 48% of net sales in
the Industrial Operations during 2010.
Strategically important for future
profitability Based on its strategies and by utilizing its strength factors, the Volvo
Group’s ambition is to further increase its competitiveness and improve
its profitability.
1998
Western Europe 52%
North America 31%
Eastern Europe 3%
South America 6%
Asia 5%
Other markets 3%
2010
Western Europe 34%
North America 18%
Eastern Europe 5%
South America 11%
Asia 25%
Other markets 7%
Organic growth
• Strong brand and distribution in Eastern Europe
• Product portfolio expansion and distribution in
South America and Asia
• Development of acquired businesses
Acquisitions and JVs
• Lingong, China
• UD Trucks, Japan
• VECV (Eicher), India
17% 48%
Successful inroads into new markets
Share of Industrial Operations’ net sales
16