Volvo 2011 Annual Report Download - page 16

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A GLOBAL GROUP 2011
Growing markets
In 2011 the heavy-duty truck market in Europe 29 (EU’s 27
member states, Norway and Switzerland) increased by
35% to 242,400 trucks compared to 179,200 in the pre-
ceding year. In 2012, the total market for heavy-duty
trucks in Europe 29 is expected to experience a moderate
decline to a level of about 220,000 trucks. The start of
the year is expected to be slow with a gradual pick-up in
demand as customers start to renew their fleets ahead of
the new emission regulation in 2014.
The construction equipment market increased substan-
tially in 2011 compared to the weak 2010. When measured
in number of units, the total market increased by 31%.
Despite the strong increase, the market is far from the
record levels of 2007. The European market for construction
equipment is expected to grow by 10–20% during 2012.
The European bus market was weak during the year
with fierce competition. Demand for marine engines was
characterized by a wait-and-see approach among boat
buyers and the development was augmented by the global
turmoil in financial markets. The financial concern also
impacted the market for industrial engines, where
demand declined from high levels.
Increased market shares in Europe
The Group’s truck business gained market share in many
markets during the year. In Europe 29 the Group’s combined
market share increased to 26.3% (24.4), primarily driven by
the Volvo brand.
New city bus given global premiere
At the end of October, Volvo Buses’ new city bus, the Volvo
7900, was given its world premiere, when it was presented
at the large international bus fair, Busworld, in Kortrijk in
Belgium. Busworld is a large and important fair for the bus
industry and attracts visitors from all over the world. The
Volvo 7900 is a lowfloor bus that has been designed to be
lighter, more fuel efficient and to take more passengers.
At the fair Volvo Buses also presented its hybrid version
of the Volvo 7900. The already very low fuel consumption
in Volvo’s hybrid bus will be even lower. Fuel consumption
will be up to 37% lower than a diesel bus, compared with up
to 35% in current hybrid buses.
However, the hybrid version is only one of the options
with respect to the new Volvo 7900. The bus is offered
with engines for diesel/biodiesel and natural gas/biogas.
It is available as 12-meter bus or 18-meter articulated bus.
Environmentally-adapted products
In May, Volvo Trucks launched the new Volvo FM Methane-
Diesel truck, a gas-powered truck for long-haul opera-
tions enhancing its focus on alternative fuels.
This truck can be powered by up to 75%
gas and if run on biogas, emissions
of carbon dioxide from fossil
fuel could be cut by up to
70% compared with a
conventional diesel
engine.
During 2011, the European market accounted for SEK 121 billion,
corresponding to 39%, of Group net sales. Europe is the historical
home market for both Volvo and Renault Trucks. In Europe, the
Group has a considerable industrial structure with a relatively large
share of its manufacturing and sizeable exports.
DEVELOPMENT BY CONTINENT
EUROPE – THE LARGEST MARKET
A GLOBAL GROUP 2011
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