Another record year for Volvo Trucks

2005 was another record year for Volvo Trucks. The company delivered a total of 103,696 (97,264) trucks - the highest ever recorded in the history of the company – which represented an increase of 7% on the previous year. The increase resulted primarily from a strong demand for heavy trucks at North America.

The total market in Europe increased by 9% during the year, comprising 276,700 vehicles (254,700). On Volvo Trucks’ part deliveries decreased in Europe by 1%. The number of vehicles delivered amounted to 42,633 (43,210).

On the North American market demand for heavy trucks was very high. The total market comprised 329,000 vehicles (255,000) - an increase of 29%. Deliveries from Volvo Trucks increased by 23% to 32,151 vehicles (26,035).

Volvo Trucks International Division deliveries also increased with both South America and Asia increasing their deliveries by 2%, to 7,723 (7,580) and 17,678 (17,328) vehicles respectively.

In February 2005 the company presented its new flagship, the Volvo VT880, on the North American market. The new truck is aimed at the prestige segment and is equipped with a new 16 litre engine installed in the USA. The investment totalled $67 million USD (£ 37.7m)

In Europe last September Volvo Trucks launched its new generation of Volvo FH and Volvo FM models which are the cleanest and most fuel-efficient so far. The entirely new 13 litre model and the improved 9 litre model meet the forthcoming Euro 4 exhaust emissions regulations using SCR catalysator in an investment totalled € 300 million (£ 204m)

In Russia Volvo Trucks kept its strong position, and sales increased steadily. Up to December 2005 1,339 trucks had been delivered, which was an increase of 99% compared with the corresponding period in 2004. In September the company took a further step into the Russian market when the first wholly-owned service plant was opened. The total investment comprised SEK 100 million (£ 7.3m).

In South Africa, Volvo Trucks opened a new factory in Durban in the autumn. At the same time work at the assembly plant in Botswana ceased, where since 2000 CKD (Completely Knock Down) kits had been assembled. The reason for the move of factory was a demand for shorter lead times and lower haulage costs.

During this year it was decided to make the Volvo Trucks factory at Tuve into the world’s first carbon dioxide-free vehicle factory. By investing in wind power and biofuels the factory will be able to obtain electricity and heat which does not add any carbon dioxide into the atmosphere.

Volvo Trucks’ parent company, AB Volvo, saw its growth continued in the fourth quarter and sales reached slightly more than SEK 65 billion (£ 4.75bn), up 15% compared with the corresponding period in 2004. The year 2005 was strong with a profitable growth and sales rose for the second consecutive year by about 15%. Net sales for the full year 2005 increased by 14% to SEK 231,191m (£ 1.7 bn) and the Group’s operating margin rose from 7.3% to 7.9%.