Volvo 2012 Annual Report Download - page 40

A GLOBAL GROUP 2012
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 out-
side 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 2012, the markets outside of Western Europe and North America
accounted for 47% of the Industrial Operations' total sales, compared with
16% in 2000.
Strong market channels
The Volvo Group's products are sold and serviced through wholly-owned as
well as independent dealers and service workshops. In order to attain a
market position which is strong over the long term, good products are not
enough. Of at least equal importance is a finely-meshed network of dealers
and service points that can support customers in demanding transport and
construction businesses. A testament to the strength of the Volvo Group's
distribution and service network is the market positions that have been
attained. The table to the right shows the truck brands' combined market
shares in heavy-duty trucks in a number of important markets.
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.
GLOBAL STRENGTH
In a changing world
A GLOBAL GROUP 2012 GROUP PERFORMANCE
1998 Acquisition of the excavator
operations of Samsung Heavy Industries.
1999 Sale of Volvo Cars to Ford.
2001 Acquisition of the truck
manufacturers Mack and Renault VI.
2003 Acquisition of Bilia's
European truck and construction
equipment dealers.
2004 Acquisition of remaining 50% of
the Canadian bus manufacturer Prévost.
2006 Acquisition of Japanese
Nissan Diesel (Now UD Trucks).
Completed in 2007.
2007 Acquisition of Chinese wheel
loader manufacturer Lingong (SDLG).
2007 Acquisition of Ingersoll Rand's
road development division.
2008 Formation of joint venture with
Eicher Motors of India within trucks
and buses.
2012 Acquisition of the French
vehicle manufacturer Panhard.
2012 Divestment of Volvo Aero to
the British company GKN.
2012 Increase to just over 25%
ownership in engine manufacturer
Deutz.
2013 Agreement to acquire 45% of
Chinese truck company Dongfeng
Commercial Vehicles.
The Volvo Group's larger acquisitions and divestments
Since the streamlining towards commercial vehicles was initiated more
than ten years ago, the Volvo Group has grown into one of the world's larg-
est manufacturers of heavy-duty trucks, buses and construction equipment
and is today also a leading manufacturer of heavy-duty diesel engines and
marine and industrial engines.
Group market shares
Heavy-duty trucks
2012 2011
EU29 25.7 26.3
North America 18.3 18.2
Brazil 18.2 17.1
Japan 17.5 20.3
India* 3.9 3.1
Australia 21.4 23.4
South Africa 23.5 24.5
* In India Eicher has a particularly strong position
within medium-duty trucks with a market share of
31.4% (30.5).
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