The Volvo Group Annual Report 2010
The Volvo Group Annual Report 2010
The Volvo Group Annual Report 2010
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A global GROUP <strong>2010</strong><br />
Strength factors<br />
<strong>Volvo</strong><br />
profitability<br />
Based<br />
Strategically important for future<br />
Mack<br />
By selling products with different brands, the<br />
Strong brands<br />
<strong>Volvo</strong> <strong>Group</strong> can penetrate many different customer<br />
and market segments in mature markets<br />
as well as growth markets.<br />
<strong>The</strong> <strong>Volvo</strong> brand, which has been built up over<br />
decades, is one of the world’s best known and<br />
respected names within trucks, buses, construction<br />
equipment, marine engines, industrial<br />
engines and in the aviation industry.<br />
Mack is one of the most well-known truck<br />
brands in North America, while Renault Trucks<br />
holds a special position in Southern Europe. <strong>The</strong><br />
UD brand is one of the biggest in the Japanese<br />
truck market.<br />
Prevost sells coaches and Nova Bus city buses<br />
Lingong<br />
in North America.<br />
<strong>The</strong> <strong>Volvo</strong> <strong>Group</strong> also sells construction equipment<br />
under the SDLG brand mainly in China, and<br />
through joint-venture companies, trucks and<br />
buses under the Eicher brand mainly in India and<br />
buses under the Sunwin and Silver brands in<br />
China.<br />
Sunwin<br />
machines. All in all, the <strong>Volvo</strong> <strong>Group</strong> in <strong>2010</strong> was<br />
Silver<br />
intended to provide for improved competitiveness.<br />
Prevost<br />
Nova Bus<br />
Renault<br />
UD Trucks<br />
Eicher<br />
1998<br />
Successful inroads into new markets<br />
Share of Industrial Operations’ net sales<br />
16<br />
Western Europe 52%<br />
North America 31%<br />
Eastern Europe 3%<br />
South America 6%<br />
Asia 5%<br />
Other markets 3%<br />
on its strategies and by utilizing its strength factors, the <strong>Volvo</strong><br />
<strong>Group</strong>’s ambition is to further increase its competitiveness and improve<br />
its profitability.<br />
A customer offering at the forefront<br />
<strong>The</strong> <strong>Volvo</strong> <strong>Group</strong> offers customers complete, efficient<br />
transport solutions. Products with reliability,<br />
durability, good driveability, favorable fuel<br />
efficiency and high environmental performance<br />
are combined with services such as financing,<br />
insurance, various service contracts, accessories<br />
and spare parts that support the core products.<br />
<strong>The</strong> <strong>Volvo</strong> <strong>Group</strong>’s increasingly broad offering<br />
of these services and aftermarket products is<br />
Strong dealers<br />
Through the years, the <strong>Volvo</strong> <strong>Group</strong> has invested<br />
considerable resources in building a very strong<br />
dealer network with overall well-developed sales<br />
and service channels. <strong>The</strong> network consists of<br />
wholly-owned as well as independent dealers.<br />
Thanks to large populations of <strong>Group</strong> products in<br />
most markets, the dealers have a stable base of<br />
revenues from the important aftermarket with<br />
service and repair.<br />
Strong market positions<br />
<strong>The</strong> <strong>Volvo</strong> <strong>Group</strong> has leading positions globally in<br />
each of its business areas. <strong>The</strong> <strong>Volvo</strong> <strong>Group</strong> is<br />
Europe’s largest and one of the world’s largest<br />
<strong>2010</strong><br />
Western Europe 34%<br />
North America 18%<br />
Eastern Europe 5%<br />
South America 11%<br />
Asia 25%<br />
Other markets 7%<br />
17% 48%<br />
manufacturers of heavy-duty trucks and one of<br />
the largest manufacturers of buses in Europe and<br />
North America. Within construction equipment,<br />
the <strong>Volvo</strong> <strong>Group</strong> is the world’s largest manufacturer<br />
of articulated haulers as well as one of the<br />
world’s largest manufacturers of wheel loaders,<br />
excavators equipment and road development<br />
one of the world’s largest producers of heavyduty<br />
diesel engines.<br />
Strengthened presence in Asia and<br />
South America<br />
In recent years, the <strong>Volvo</strong> <strong>Group</strong> has strengthened<br />
its position in important growth markets in<br />
Asia and South America through a combination<br />
of organic growth and acquisitions. Among the<br />
acquired companies are UD Trucks in Japan, Lingong<br />
(70% ownership) in China and VE Commercial<br />
Vehicles (50% ownership) with its Eicher<br />
brand in India. During <strong>2010</strong>, 19% of the Industrial<br />
Operations’ net sales were generated in the BRIC<br />
countries (Brazil, Russia, India and China). Altogether,<br />
the markets outside Western Europe and<br />
North America accounted for 48% of net sales in<br />
the Industrial Operations during <strong>2010</strong>.<br />
Organic growth<br />
• Strong brand and distribution in Eastern Europe<br />
• Product portfolio expansion and distribution in<br />
South America and Asia<br />
• Development of acquired businesses<br />
Acquisitions and JVs<br />
• Lingong, China<br />
• UD Trucks, Japan<br />
• VECV (Eicher), India