Volvo 2010 Annual Report Download - page 39

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Outcome 2010
• Expansion of excavator production in India and Brazil. Decision to establish a technology center
in China.
• Increased cooperation and synergies between Volvo and Lingong, with, among others, a joint
product plan.
• Equipment and service optimized for prioritized markets.
• Telematic system, CareTrack, introduced as standard in all major machines.
• Production in North America consolidated from three plants to one.
Ambitions 2011
• Further strengthen the position in the BRIC countries.
• Continue to reduce the break-even level by cost reductions
– material, as well as variable and fixed costs.
• Successful launch of Tier4i and Stage IIIB engines in North America
and Europe.
• Continued development and launch of new products and services.
Net sales by market
Construction Equipment, SEK M 2009 2010
Europe 12,987 16,138
North America 5,475 6,267
South America 2,578 4,130
Asia 12,957 24,352
Other markets 1,661 2,923
Total 35,658 53,810
Net sales as per-
centage of Volvo
Group sales
Operating income (loss) and
operating margin
Net sales
SEK bn
20% (16)
SEK M
%
10
6,180
11.5
09
(4,005)
(11.2)
08
1,808
3.2
07
4,218
7.9
06
4,072
9.7
10
53.8
09
35.7
08
56.3
07
53.6
06
42.1
burg. USD 30 M was invested to expand the plant
to improve production flow and increase capacity.
At the same time, the plant meets all requirements
to be classified as a sustainable facility in accord-
ance with the U.S. Green Building Council.
Product launches
Volvo CE is moving ahead with its plans to deliver
turnkey solutions adapted for various customer
groups. At the same time, the investment in soft
products continues and Volvo CE will continue to
launch new value-adding products and services
for customers.
Product launches in 2010 include compact
excavators EC15, EC17, EC21 and EC23, as well
as compact wheel loaders L20F and L25F. In
addition to these, large wheel loaders L150, 180
and L220 also included OptiShift as a standard
feature.
An additional key event in 2010 was that Volvo
CE was awarded the Tier 4i certificate from the
U.S. Environmental Protection Agency, EPA,
which certifies low emissions from heavy equip-
ment equipped with the D11, D13 and D16
engines. This occurred after a similar certificate
was received from the EU earlier in the year cer-
tifying that the engines complied with require-
ments in Europe’s Stage IIIB legislation.
53.8 6,180
35