Volvo 2013 Annual Report Download - page 79

The Volvo 9700 is spacious, reliable
safe and productive. It is an excellent
tourist coach since it not only makes
sure that the passengers have every
comfort in a quiet and calm environment,
but it also offers the driver great handling
characteristics.
Volvo Buses has sales in 85 countries
and one of the industry’s most compre-
hensive service networks, with more than 1,500
dealerships and workshops worldwide. Pro-
duction facilities are located in Europe, North
America, South America and Asia.
New product program for Euro 6
During 2013, Volvo Buses launched a com-
pletely new product program for Europe, with
engines that comply with the new Euro 6 emis-
sion requirements. The step from Euro 5 to Euro
6 entails that emissions of nitrogen oxide will be
reduced by 77%, while the amount of particu-
lates in exhaust fumes will be halved. At the
same time, the buses’ fuel consumption and
climate impact have been reduced. For some
models, fuel saving is a full 10%. Sales com-
menced during the second half of the year and
the new products were well received in the
market. In addition Volvo Buses introduced the
Volvo 7900 Articulated Hybrid bus during 2013
along with an upgraded coach program.
Beyond Euro 6 – electromobility
Volvo Buses continues to develop its market-
leading position in electromobility worldwide.
Transport systems with electric hybrids and/or
completely electric vehicles make it possible to
reduce energy consumption, climate impact,
noise and emissions and are therefore viewed
by many cities around the world as the key to
sustainable public transport. Under a joint City
Mobility format, Volvo commenced cooperation
on electromobility with Gothenburg, Hamburg,
Luxembourg, Montréal and Stockholm.
The fi rst Volvo brand electric hybrid bus was
introduced in 2009. Since then, approximately
1,300 hybrid buses have been delivered to cus-
tomers in 21 countries. Most of the sales occur
in Europe. At the same time, important break-
throughs were made in several markets. Volvo
Buses in South America received an order for
200 hybrid buses for Bogotá, Colombia. Volvo
Buses’ North American subsidiary Nova Bus sold
475 hybrid buses to Quebec in Canada. Sunwin
Bus in China, of which Volvo owns 50%, is among
the world’s largest manufacturers of large elec-
tric buses. During 2013, Sunwin Bus delivered
more than 300 electric buses.
Volvo Buses’ hybrid program expanded in
2013, with an articulated bus model and a new
more fuel-effi cient diesel engine. From 2014,
all complete low-fl oor buses sold by Volvo in
Europe are hybrid buses.
In spring 2013, a fi eld test commenced with
Volvo’s fi rst plug-in hybrid buses in Gothenburg.
The technology entails that the bus’ battery may
be charged via an electricity network at the ter-
minals and that the bus will be able to operate
quietly and free from exhaust gases for approx-
imately seven kilometers on electricity alone. The
tests, which were conducted in autumn 2013,
showed that the fuel consumption and climate
impact emissions for the plug-in buses were
more than 80% lower than for conventional die-
sel buses. The total energy consumption (diesel
and electricity) is more than 60% lower. Com-
mercial manufacturing of Volvo’s plug-in hybrids
is scheduled for 2015.
In Gothenburg, Sweden Volvo has taken the
initiative for ElectriCity – an innovative collabo-
ration project with the City of Gothenburg as a
demonstration and test arena for the electric
public transport of the future. The project
includes a bus service that will op erate com-
mercially on fully electric vehicles and plug-in
hybrids starting in 2015.
Deliveries decreased but order intake
increased
The global bus market remained weak during
2013. Volvo Buses’ deliveries declined to 8,910
buses and bus chassis compared with 9,297
during 2012. However, the total order intake in -
creased to 9,621 units in 2013 compared with
8,905 in the preceding year.
Several important orders were signed, in ad -
dition to those mentioned above. For example,
Volvo Buses’ North American subsidiary Prevost
received an order for 300 commuter buses to
New York City. In February, Volvo Buses’ other
North American subsidiary Nova Bus secured
an order for 475 hybrid buses to Quebec, Can-
ada. Nova Bus also received an order for 414 low
fl oor city buses from MTA New York City Transit.
Due to lower volumes and increased price
pressure in Europe, Volvo Buses has concen-
trated the manufacture of complete buses in
Europe to the company’s production facility in
Wroclaw, Poland. The manufacture of Volvo
Buses in Säffl e, Sweden, was discontinued dur-
ing the second quarter of 2013.
Loss for the full year
During 2013, net sales declined by 15% to SEK
16,707 M (19,587). Net sales declined in all mar-
kets. Adjusted for changes in exchange rates,
net sales declined by 10%.
Operating income excluding restructuring
charg es amounted to a negative SEK 190 M
(148) and the operating margin excluding re -
structuring charges was a negative 1.1% (0.8).
No restructuring charges were recorded during
the year compared with SEK 110 M in the preced-
ing year. Profi tability was negatively impacted
by low volumes, a negative currency impact of
SEK 199 M, a negative market and product mix
as well as the price pressure in Europe.
Net sales
SEK bn
Operating income (loss)*
and operating margin*
Net sales by market
SEK M 2013 2012
Europe 5,429 6,200
North America 5,929 6,675
South America 1,836 2,794
Asia 2,055 2,149
Other markets 1,457 1,768
Total 16,707 19,587
Deliveries by market
Number of
buses 2013 2012
Europe 2,146 2,491
North America 1,752 1,826
South America 2,434 2,560
Asia 1,822 1,564
Other markets 756 856
Total 8,910 9,297
13
19.6 16.7
12
21.8
11
20.5
10
18.5
09
16.7
SEK M
%
12
148
0.8
13
(190)
(1.1)
11
1,114
5.1
780
3.8
10
(350)
(1.9)
09
(190)
The
The
VoVo
lvo
lvo
97
97
00
00
is
is
sp
sp
aci
aci
ous
ous
, r
,r
eli
eli
abl
abl
e e
e
*Excl. restructuring charges
75