Volvo Trucks
Volvo Trucks
Volvo Trucks
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<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong>Jorma Halonen1<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Trucks</strong>Third QuarterThird QuarterFirst Nine MonthsSEK M 2002 2001 Change 2002 ChangeVolume (units) 37,515 31,142 20% 114,618 1%Sales 28,507 25,611 11% 87,619 4%Operating income 673 (340) n.a. 682 52%Operating margin % 2.4% -1.3% 3.7 0.8% 0.31)Highlights• Increased deliveries in all markets• High production levels forRenault <strong>Trucks</strong> and <strong>Volvo</strong> <strong>Trucks</strong> in Europe• Positive effects from price realization and synergies• New <strong>Volvo</strong> VN truck range launched• Both Mack and <strong>Volvo</strong> engines compliantwith EPA’02 legislationIn Focus• Production changeover for <strong>Volvo</strong> VN• Secure gradual ramp-up of Mack trucksin New River Valley• Continued strengthening of dealers inNorth America• Cash flow1) Including a gain of SEK 574 M from divestiture of the Mitsubishi holding in 2001 Note: Excluding restructuring costs in 20012<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong> - Deliveriesy.t.d September 2002Market Areaytd Jan - Sep Change2002 2001 %Total Europeof which:Western EuropeEastern EuropeNorth AmericaSouth AmericaAsiaRest of the world26 434 30 140 (12)23 042 27 046 (15)3 392 3 094 1011 534 10 357 113 485 3 481 05 902 3 518 682 021 1 658 22TOTAL49 376 49 154 13<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersHeavy Duty MarketWestern Europe250Units, Thousands (heavy trucks)22520017515012510085 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '024<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersTotal Market Heavy <strong>Trucks</strong>W. Europe Registration ForecastUnitsThousands30025023624623720821420015010098 99 '00 '01 '02 '035<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersMarket SharesWestern Europe<strong>Volvo</strong> Market Share DevelopmentMarket Shares %, ytd Jan - September16GVW 16 ton and above (preliminary)2002 200115141312<strong>Volvo</strong>Renault13,913,0Mercedes Benz 19.4 18.9<strong>Volvo</strong> 13.9 14.7MAN 13.6 15.6Scania 13.5 13.6Renault 13.0 12.011Daf 12.5 11.41098 99 '00 '01 ytd 02Iveco 11.3 10.5Sweden, Norway, Finland, Denmark, Great Britain, Eire,Belgium, Luxembourg, Netherlands, Switzerland, Germany,France, Italy, Spain, Portugal, Greece, Austria6<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong> in EuropeEmphasise on bottom-line result– Good overall performance, P&L and cash flowPrice Management– Actively well paid for value in the new FH/FM truck familyFH / FH program very well positioned– Some 30,000 trucks delivered so far– Long lead-times for new ordersChannel Strategy– Opportunities in new environment after “block exemption”7<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersHeavy Duty MarketNorth America300Units, Thousands (heavy trucks)25020015010085 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '028<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersTotal Market Heavy <strong>Trucks</strong>NAFTA Retail Sales ForecastUnitsThousands300250NAFTA25530925720015017017210098 99 '00 '01 '02 '039<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersOrder Intake North America30 00025 00020 000Pre-buyUS’02Industry built15 00010 0005 000Net orders0j f m a m j j a s o n d j f m a m j j a s10<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersMarket SharesNorth America<strong>Volvo</strong> Market Share DevelopmentMarket Shares %, ytd Jan - September15,013,011,0Mack13,42002 2001Freightliner 29.0 29.4International 16.2 16.1Kenworth 14.1 10.99,07,05,0<strong>Volvo</strong>8,098 99 '00 '01 ytd 02Mack 13.4 14.1Peterbilt 11.4 10.1<strong>Volvo</strong> 8.1 10.3Sterling 5.5 6.711<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersProduct Renewal250Units, Thousands2nd generation - 982001501993FH series3rd generation - 021996 VN series10090 91 92 93 94 95 96 97 98 99 '00 '01 '0212<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersNew Heavy Duty <strong>Trucks</strong>… to secure a leading positionScopemNew generation heavy duty trucks,FH/FM for Europe; VN/VHD for U:S.FeaturesmmmmmQuality and ReliabilityDriver’s environment & SafetyTransport economyFuel consumptionEnvironment, US’02 emission standardsInvestmentmIn total 790 million Euro13<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong> in North AmericaNew VN / VHD introduction• Project is running according to re-planned time lines• Product launch was held in Greensboro in August• Road show “Drive the future tour” in process• Serial production starts in week 45• Focus on quality control, material supply etc• Improved price and cost levelsScheduled to give exposure to19,000 drivers; 1,500 test drivesRadio Promotion14<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong> in North AmericaRestructuring program follows plan• Strengthening customer support system and product offering• Introduction of LPA concept (Logistic Parts Agreement)• Shorter lead-times for parts (as a result of combined warehouse networkwith Mack)• Back office consolidation• Winnsboro plant closure,• finalized in of November• ramp up with full production in Q1-200315<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersSouth America GDP10,07,5Consensus Forecasts5,0y/y change, %2,50,0-2,5-5,0-7,5-10,0-12,596 97 98 99 00 01 02 03Brazil GDPArgentina GDPChile GDPPeru GDPGDP 2001 %Brazil 503,9 44%Argentina 272,6 24%Venezuela 129,2 11%Chile * 71,0 6%Peru * 54,0 5%Others 121,3 11%1.152,0* GDP 200016<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersHeavy Duty MarketBrazil40Units, Thousands (heavy trucks)302010091 92 93 94 95 96 97 98 99 '00 '01 '0217<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersTotal Market Heavy <strong>Trucks</strong>S. America Registration ForecastUnitsThousandsForecast4035393535 36HDV+MHDV30252015213016181819HDV(Long Haul )105098 99 '00 '01 '02 '03Source: <strong>Volvo</strong> <strong>Trucks</strong>; S.G., Brazil, March 11, 200218<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> do Brasil• In Brazil since 1934• Pederneiras plant: 1975 (Clark Michigan)• Curitiba plant: 1979• 1800 employees• Over 120.000 vehicles delivered• Turn over 2001: 530 MUSD• Invested 370 MUSD in the last 10 years19<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersProduct LineTRUCKSMARINE ANDINDUSTRIALPOWER SYSTEMSAIR ENGINEBUSES<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09FINANCIAL SERVICESCONSTRUCTIONEQUIPMENTS20
<strong>Volvo</strong> MastersBOGOTALIMAVENEZUELAPEDERNEIRASRIO DEJANEIROCURITIBABUENOS AIRES<strong>Volvo</strong> Units inSouth America• <strong>Volvo</strong> do Brazil - Curitiba-PRTruck, Bus, VCE and Financial Services• <strong>Volvo</strong> Peru - LimaTruck and Bus Commercial• <strong>Volvo</strong> Construction Equipment - Pederneiras-SPManufacturing• <strong>Volvo</strong> Penta - Rio de Janeiro - RJ• Mack Venezuela• <strong>Volvo</strong> Sudamericana - Buenos AiresTruck and Bus Commercial• GM Colmotores* - Colômbia21<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersMarket SharesBrazil - Heavy Duty (class V)<strong>Volvo</strong> Market Share Development35,030,025,0GCW > 40 ton32,5Market Shares %, ytd Jan - SeptemberPremium range GCW > 40 ton (class V)2002 2001<strong>Volvo</strong> 32.5 28.5Mercedes Benz 23.7 22.9Scania 21.7 35.120,015,0GVW > 15 ton15,1Volkswagen 9.1 3.7Iveco 6.8 4.0Ford 5.1 3.710,098 99 '00 '01 ytd 02International 1.2 2.122<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong> in BrazilGood performance• Strong efficiency and profit improvement; positive cash flowStrong Product program– No 1 in heavy duty segmentIndustrial capacity in placeConsolidation of dealers into 13 groupsGrowth potential within Mercosur over a business cycle23<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> MastersHeavy Duty MarketChina250Units, Thousands (heavy trucks)20015010050091 92 93 94 95 96 97 98 99 '00 '01 '0224<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters<strong>Volvo</strong> <strong>Trucks</strong>Asia ActivitiesVTC Commercial Activities¦ Develop the <strong>Volvo</strong> brand in Asia¦ Control a <strong>Volvo</strong> distribution system¦ Develop a vehicle population for parts and serviceVTC Industrial Activities¦ India: <strong>Volvo</strong> factory for heavy duty trucks, buses, Penta¦ Thailand, Malaysia: CKD assembly¦ China/CNHTC: JV (50/50) for CKD assembly of straight trucksunder negotiation25<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
<strong>Volvo</strong> Masters“Global” Market Position… challenged by Chinese manufacturersDCX129 00018%<strong>Volvo</strong>117 00016%FAW68 00010%Paccar64 0009%Dongfeng48 0007%MAN46 0007%Scania43 0006%Iveco34 0005%0 20 000 40 000 60 000 80 000 100 000 120 000 140 00026<strong>Volvo</strong> Truck Corporation20600 E.P. - 2002-11-09
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