Volvo 2011 Annual Report Download - page 14

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A GLOBAL GROUP 2011
The Volvo Group’s
acquisitions and
divestments
During this time, a number of acquisitions have been
made, which have brought economies of scale and
increased geographical reach.
Volvo Group has during this time also successfully
established itself outside its historical markets of Europe
and North America and gained a strong foothold in the
growing markets of Eastern Europe, South America and
Asia. During 2011, the markets outside of Western Europe
and North America accounted for for 49% of the Industrial
Operations’ total sales, compared to 17% in 2000.
On the following pages there is more information
about the development on important markets and on
some of the Volvo Group’s investments and successes on
them.
Long-term growth
The recovery that started in the Group’s mature markets
in 2010 continued in Western Europe and North America
during 2011, with some tendencies towards a weakening
in Europe towards the end of the year. Overall, demand in
the Group’s growth markets continued its strong devel-
opment, but also here demand weakened somewhat
towards the end of the year.
In the long-term, demand for freight capacity, and thus
many of the Group’s products, is closely linked to the
GDP trend. The extent of investment in infrastructure,
which drives demand for building and construction equip-
ment, is also closely linked to the GDP trend. In the
somewhat shorter-term, demand is affected by a number
of factors including fuel prices, the implementation of
new emission regulations, interest rates, etc.
Since the streamlining towards commercial vehicles was initiated more than
ten years ago, the Volvo Group has grown into one of the world’s largest
manufacturers of heavy-duty trucks, buses and construction equipment and
is today also a leading manufacturer of heavy-duty diesel engines, marine and
industrial engines as well as engine components for the aerospace industry.
1998
Acquisition of the excavator
operations of Samsung
Heavy Industries.
1999
Sale of Volvo Cars to Ford.
2001
Acquisition of the truck manu-
facturers Mack and Renault VI.
2003
Acquisition of Bilia’s Euro-
pean truck and construction
equipment dealers.
2004
Sale of axle-manufacturing
operations to ArvinMeritor.
2004
Acquisition of remaining
50% of the Canadian bus
manufacturer Prévost.
GLOBAL STRENGTH
IN A CHANGING WORLD
A GLOBAL GROUP 2011
10