Volvo 2013 Annual Report Download - page 64

Successes in Brazil
manifested at
Fenatran
The exhibitors were out in numbers at the major Fenatran Trade Show in São Paulo,
Brazil in October 2013, but the question is whether or not Volvo Trucks stole the show.
With a total of 70,000 visitors to the show, 17,000 to the Volvo exhibition, thousands and
thousands of new orders and a great deal of attention directed at Volvo’s 2,500 square-
meter stand, the biennial Fenatran confi rmed the successes of the Volvo Group in the
Brazilian truck market.
A GLOBAL GROUP 2013 GROUP PERFORMANCE DEVELOPMENT BY CONTINENT – SOUTH AMERICA
FOCUS BRAZIL
Positive outcome
The Brazilian government has a program, Finame, with advanta-
geous government fi nancing for investments in trucks and
construction equipment. Towards the end of the year, there were
some uncertainty concerning future lending-rate levels in
Finame and worry about rising infl ation pressure. Since then
the Finame rate has been set and many signs indicate that the
Brazilian market will remain at a level of approximately 105,000
heavy-duty trucks in 2014. The positive factors
include somewhat improved economic growth,
an excellent harvest, general investments in infra-
structure, the Soccer World Cup, which is driving
both investments and consumption, as well as
the scrapping program in some states.
Position of strength to improve further
The favorable trend in the Brazilian market has
resulted in an increasing number of the global
truck manufacturers focusing their attention on the country
and deciding to invest in manufacturing there. To benefi t from
Finame requires that a large proportion of trucks, measured in
value, are manufactured in Brazil. However, the successes of
the Volvo Group in Brazil are the result of many years’ hard
work by the Group’s employees and the employees of the
independent dealerships. The increasing competition is han-
dled from a position of strength in terms of both image and
customer satisfaction. But, it will require continued invest-
ments in the 12 sales districts, of which two are driven by the
Volvo Group and ten by independent companies.
– To support our customers, we will continue to strengthen
our service network. In 2010, we and our dealerships had
75facilities with approximately 1,000 service stations. At the
end of 2014, we anticipate we will have a combined amount of
100 facilities and more than 2,000 service stations. We are
expanding with our customers, says Roger Alm.
The Volvo Group displayed a number of exciting products and
services, including the world’s most powerful truck, the Volvo
FH 16, with a 750-horsepower engine, the updated Volvo VM
series, now also in 8x2 and 8x4 confi gurations and with I-shift
transmission, and a Volvo FM that operates on LNG – the fi rst
natural-gas truck to perform fi eld tests in Brazil.
– To be able to fully display the engine in the Volvo FH 16
750, there was a shared booth with a glass fl oor to clearly
show the engine installation. Interest in viewing
the booth was so great at times that the queue
stretched to the companies with displays closest
to us, says Roger Alm, Head of Group Trucks
Sales and Marketing in Latin America.
Key market
Demonstrating new products to customers and
other stakeholders is an important part of
Fenatran, but the Trade Show is more than that.
The Volvo Group and dealers worked together to sell trucks,
fi nancing, insurance and Gold service contracts at the point-
of-sale in the Volvo display, strongly refl ecting the Volvo Group
strategy to deliver an integrated total offer to customers. Busi-
ness activities were high and during the fi ve-day show the
number of truck orders signed was similar to the amount usu-
ally signed during a full quarter.
Interest in Volvo Trucks is huge in Brazil, which is by far the
largest truck market in South America, with 103.800 heavy-duty
trucks registered in 2013, and very important for the Volvo
Group. In recent years, the market shares have gradually
increased in the largest country in South America, from 12.8%
in heavy-duty trucks in 2008 to 20.0% in 2013. And, this
oc curred in 2013 with positive price realization. It is also very
positive that the new Volvo VM series repeated successes in
the medium-heavy segment. Market share in the segment
increased from zero ten years ago to 12.0% in 2013. During the
year Volvo was named “Most desired brand” in Brazil coming
out on top in customer satisfaction and image.
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