Volvo 2011 Annual Report Download - page 64

Volvo Buses is one of the world’s largest manu-
facturers of heavy buses. The range comprises
complete buses, chassis, transport solutions,
telematic systems, financial solutions, as well as
service and maintenance contracts. The com-
pany offers global products adapted to local
conditions, with manufacturing in Europe, Asia,
North America and South America.
Volvo Buses has sales in about 85 countries
and is one of the bus industry’s strongest serv-
ice networks, with more than 1,500 retailers and
service workshops globally.
Global leader in hybrid buses
During the year, the trend toward more efficient
transport solutions continued within the bus
industry, with less energy consumption and
lower environmental impact. Volvo Buses intro-
duced a new bus model for city traffic – the
Volvo 7900. The new bus model is available in
hybrid and for natural gas/biogas, as well as
diesel/biodiesel. The hybrid model has up to
37% lower fuel consumption and carbon-dioxide
emissions than the corresponding diesel bus.
With the Volvo 7900, Volvo Buses will strengthen
its industry-leading position in terms of fuel-
efficient hybrid vehicles. In total, Volvo Buses
has now sold more than 400 hybrid buses, of
which 110 were to the U.K., 60 to Curitiba, Brazil,
32 to Tromsö, Norway, 25 to Sweden, 10 to
Hamburg, Germany and 8 to Mexico in 2011.
Developing the vehicle of the future
The next development step in the hybrid area is
a chargeable hybrid, which can operate quietly
for long distances and is completely exhaust-free,
using only electricity. The technology has the
potential to reduce fuel consumption by as much
as 65% compared with current diesel-driven
buses. A prototype was developed in 2011 and
field tests will commence in Gothenburg in autumn
2012.
In China, there is major interest in alternative
drivelines and fuels. Here, Volvo Buses and
SAIC (Shanghai Automotive Industry Corpora-
tion) have started a joint venture company for
research, development and industrialization of
buses with alternative drive systems, both
refined electric vehicles and hybrids.
Within the framework of the EBSF research
program (European Bus System of the Future),
Volvo Buses has developed a demonstration
vehicle with various solutions that may contrib-
ute to making public transportation more effi-
cient and attractive for passengers, for example,
by more rapid entering and alighting, shorter
travel times and less crowding. Tests in traffic
commenced in Gothenburg in December 2011.
Lower operating costs with telematics
To assist customers in reducing their operating
costs, Volvo Buses is also offering telematic
systems. In 2011, Volvo Bus Telematics with
Traffic Management, Fleet Management and
Vehicle Management was launched, which will
make it easier for operators to monitor fuel con-
sumption and service requirements for each
vehicle.
New investments in India
In 2011, Volvo Buses celebrated ten years of
successful presence in India, where the com-
pany is the market leader in luxuriously equipped
intercity buses and air conditioned low-floor
buses. Comprehensive new investments are
currently being planned, which will significantly
increase the industrial capacity. The invest-
ments will meet demand in the domestic market
and facilitate increased export.
Increased deliveries, decreased
order intake
In 2011, the bus market continued to develop
favorably in Asia and South America, while it
decreased in Europe and North America.
Volvo Buses increased its deliveries by 25%
primarily due to substantially higher deliveries in
South America and North America. In total,
12,786 buses and bus chassis (10,229) were
delivered, which are the highest deliveries to
date. The final two quarters showed a somewhat
slower order intake.
Sales and income
In 2011, net sales rose to SEK 22,289 M (20,516)
strengthened by increased deliveries in South
America, North America and Europe. Operating
income improved to SEK 1,036 M (780) and the
operating margin amounted to 4.6% (3.8). Profit-
ability was favorably impacted by increased vol-
umes and an improved market mix.
For Volvo Buses, 2011 was yet another strong year, with sharply increased sales and
improved profitability.
BUSES
INCREASED SALES AND PROFITABILITY
Buses has a product range comprising city and inter-
city buses, coaches and chassis.
Number of employees
7,400
In addition to complete buses, Volvo Buses also delivers
bus chassis for completion at external body builders.
Position on world market
The business area is one of the
world’s largest producers of buses.
Brands
Volvo, Prevost, Nova and Sunwin.
BOARD OF DIRECTORS’ REPORT 2011
60