Volvo 2013 Annual Report Download - page 61

Decline in truck market. In 2013, the
total market for heavy-duty trucks in
North America declined to 236,300 trucks
compared with 249,600 in the preceding year.
Demand was relatively weak during the fi rst six
months of the year, but improved slightly over
the course of the year supported by a slight
recovery in the U.S. economy, an improvement
in the construction cycle and a continued wide-
spread replacement need in the highway truck
segment.
Successes due to attractive products
In 2013, the Volvo Group increased its market
share in North America. The combined market
share in the heavy-duty segment was 18.8%
(18.3), on the back of a competitive customer
offering of trucks equipped with engines and
transmissions that provide considerable fuel sav-
ings, improved drivability, less wear and improved
safety. The new drivelines have meant that an in -
creasing number of customers opt for Volvo
Group engines. In 2013, 87% (79) of Volvo trucks
sold in the U.S. and Canada were equipped with
Volvo engines. The vast majority of Mack trucks
are equipped with the Group’s Mack engines.
The high demand for the Group’s automated
mechanical transmissions, Volvo I-Shift and Mack
mDRIVE, continued in North America. Volvo
Trucks introduced its I-Shift transmission on the
North American market in 2007 and at the start
of 2013 it was announced that the transmission
would be standard on all trucks with Volvo engines
built for the North American market. During 2013,
69% (59) of trucks with Volvo engines in North
America were equipped with I-Shift. Since I-Shift
is only available together with Volvo engines, this
also helps promote sales of the company’s own
engines. mDRIVE was introduced in Mack prod-
ucts in 2010 and in 2013 it was installed in 40%
(27) of all Mack highway trucks.
Improved drivelines
During the year, Volvo expanded the XE – Excep-
tional Effi ciency – driveline concept with the
launch of XE11 for its 11-liter engine. XE11 is
avail able for the Volvo VNM and Volvo VNL mod-
els and improves fuel effi ciency by up to 3%. XE
drivelines form an integrated component com-
prising a Volvo engine, the I-Shift transmission,
optimized axle ratio and proprietary software that
makes it possible to reduce engine rpm when
driv ing at high speeds, a concept Volvo calls
“down speeding.” Volvo introduced XE drivelines
for its 13 and 16 liter engines in North America
in 2012.
During the year, the company announced that
all model year 2014 Volvo engines would also be
more fuel effi cient as a result of improved engine
components. Customers purchasing trucks with
11, 13 or 16-liter engines will notice a fuel saving
of 0.5–2%, which entails considerable savings
for both large and small trucking companies.
During the year Volvo Trucks became the fi rst
manufacturer to announce plans to commercial-
ize dimethyl ether (DME)-powered heavy-duty
commercial vehicles in North America.
Volvo CE opened in Shippensburg
The North American market for construction
equipment displayed a stable performance during
the year. In total, the market, measured in num-
ber of machines sold, increased by 2% com-
pared with 2012. However, Volvo CE’s deliveries
in North America fell by 23% to a total of 5,240
machines in 2013 (6,782). Demand for Volvo
machines strengthened in 2012 as a result of
rental fi rms renewing their machine fl eets. The
scope of these measures declined in 2013, which
led to lower deliveries for Volvo CE.
In March, production of the fi rst U.S.-manu-
factured L60–L90 wheel loaders began at the
plant in Shippensburg, Pennsylvania. Volvo CE
has invested a total of USD 100 M in the facility,
which also produces road machinery.
Volvo CE’s SDLG brand was introduced among
selected dealers in the North American market
during the year. Two wheel loader models were
initially launched, the 11-ton LG958 and 17-ton
LG959.
Hybrid bus success
The North American market for both city buses
and coaches remained weak as a result of the
budget restrictions in many cities, but there
were indications of recovery in the market in the
second half of the year. The Volvo Group deliv-
ered a total of 1,752 buses in North America,
down 4% compared with 1,826 buses in 2012.
Volvo Buses’ North American subsidiary
Nova Bus secured an order for 475 hybrid
buses to Quebec, Canada. This is the single
largest order for hybrid vehicles for the Volvo
Group to date. The order also includes an option
for a further 1,200 vehicles. Nova Bus also
received an order for 414 low fl oor city buses
from MTA New York City Transit, with an option
for an additional 700 buses.
In November, Nova Bus and the Montréal pub-
lic transport authority, Société de transport de
Montréal (STM), signed an agreement on an
electrifi cation project for the public transit sys-
tem of the city, formalizing the intention of test-
ing three Nova LFSe electric buses and two
charging stations. The goal is to have the noise-
less and emission-free buses operational for
demonstration in the third quarter of 2015 and in
regular traffi c for three years, beginning in 2016.
Montréal will be the fi rst city in North America to
take part in the Volvo City Mobility Program.
During the year Volvo Buses other North
American subsidiary, Prevost, secured an order
for 300 commuter buses to New York City.
AB Volvo to sell Volvo Rents
in North America
In December 2013, the Volvo Group signed an
agreement to sell its North American construc-
tion equipment lease operation, Volvo Rents, for
approximately SEK 7.0 billion. The transaction was
completed on January 31, 2014. The divestment
is in line with the strategic effort to focus on the
core business. Volvo CE will continue to sell
products to Volvo Rents under the new ownership.
Volvo Group in North America
• Net sales: SEK 63,088 M (71,101)
• Share of net sales: 23% (24)
• Number of employees: 16,397 (16,569)
• Share of Group employees: 17% (17)
• Largest markets: The U.S., Canada and
Mexico.
Mack TerraPro Low Entry is the
most versatile Mack truck the refuse
industry has ever seen.
Market development, heavy-duty
trucks, North America, Thousands
1312111009
236250216142118
Market development, construction
equipment, North America,
Thousands
1312111009
1661641128268
Market shares in North America,
heavy-duty trucks, %
13121312
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