Volvo Trucks celebrate record year in 2006

Volvo Trucks had a record year in 2006 by delivering more than 105,000 trucks worldwide - two per cent more than in 2005.

Never before have so many trucks been built at the company’s factories around the world, not least of the significantly increased demand from countries in Eastern Europe and North America. The excellent result can also be explained by the success of the most recent truck models, which are equipped with new, highly fuel-efficient engines that are already meeting forthcoming environmental standards.

“Our good profitability has meant that we were able to invest more than 10 billion kronor (£ 730m approx) in new products over the past five years,” says Staffan Jufors, President and CEO of Volvo Trucks. “The market’s reception of our new models has been excellent. We have also invested hugely in developing our dealership network and our staff’s competence.”

The need for heavy transport remains very high throughout Europe, which is reflected in an increase of 15 per cent of deliveries. Traditionally strong markets such as France, Germany and the Netherlands are experiencing increased demand at the same time as truck sales in Eastern Europe are showing a highly positive trend. For example, the largest delivery increases in 2006 were recorded in Russia (82%) and Poland (56%) respectively.

The North American truck market also reached record levels in 2006. The total market amounted to 340,000 vehicles with Volvo increasing its market share from 10.5% (2005) to 10.8%. One important explanation for the significant increase is the pre-purchase effect that arose in the run-up to 1st January 2007, when the new EPA 07 exhaust regulations came into force. Many customers chose to purchase trucks in advance with existing technology.

On the markets in the International Division – South America, Asia, the Middle East and Africa – development has been relatively stable. The total market in Brazil shrank in 2006, but Volvo do Brasil increased its deliveries by three per cent.

A number of markets in the Middle East, such as Turkey, Saudi Arabia and the United Arab Emirates, also developed positively. In addition, Asian markets, such as China, South Korea and India also saw higher delivery figures than in 2005.

All-new product range

Since autumn 2005, Volvo Trucks has renewed its entire European product range. First out was the new generation of the Volvo FH and Volvo FM with the all-new economical 13-litre engine that already meets Euro 5 emissions legislation, not scheduled for Europe until 2009. February 2006 saw the introduction of the world’s most powerful production truck - the Volvo FH16 - with up to 660 hp. This was closely followed by the introduction of the Volvo FL and all-new Volvo FE in June. By offering two entirely new distribution trucks, Volvo Trucks is aiming to reach a wider customer base in segments other than heavy long-haul operations. At the same time, a new business concept for distribution traffic in urban environments is being introduced. The company’s trucks are already leaders in long-haul operations in Europe and now with the focus on the new, smaller and lighter models, Volvo Trucks aims to reach out to customers in the distribution segment.

At the Mid-American Trucking Show in Louisville, Kentucky (USA) two new cab versions were launched to broaden the North American product range for the Volvo VN and Volvo VT. These models are aimed primarily at single-truck haulage firms and were introduced at the show with a new sleeper cab featuring a lower roof height. The cabs offer the same interior spaciousness, but the new lower roof means better aerodynamics and therefore better fuel economy for combinations with low bodies, such as tankers.

After announcing its initiative to make the Tuve truck factory in Gothenburg, Sweden, carbon dioxide-free in 2005, last year Volvo Trucks presented its intention to make all its European production units CO2-neutral by the end of 2007. This involves, not least, a shift to alternative energy sources including wind-power.

In order to further secure deliveries to customers primarily in southern Africa, a new assembly plant was inaugurated in August in Durban, South Africa. In North America, record numbers of trucks were built in the factory in New River Valley (Virginia). Then, just before the end of the year, the magical figure of 50,000 vehicles for a single operational year was passed.