High deliveries in China Volvo delivered 10,360 buses and bus chassis
Operating income rose from SEK 470 M to
(10,675) in 2006. Higher sales were reported
earnings are attributable to better product and
mainly in North America, South America and
market mixes and increased cost awareness
Asia. During the year, 1,300 of an order for
resulting in more efficient production methods
2,000 midi-buses were delivered to Shanghai
as well as increased use of components that
in China.
are common with Volvo Trucks. Operating
Volvo Buses market shares were strength-
Number of vehicles delivered
SEK 633 M . Among other factors, the stronger Western Europe Eastern Europe North America South America Asia Other markets Total
2004
2005
2006
3,073 344 1,388 624 2,341 462 8,232
3,385 338 1,546 2,297 2,554 555 10,675
3,246 324 1,741 1,170 3,349 530 10,360
income included a positive effect of SEK 47 M
ened in, for example, Mexico, China and North
following settlement of a dispute regarding
Net sales per market
America. In contrast, the business area lost
export credits in Brazil.
Mkr
market shares in Europe, due mostly to intense price competition. However, Volvo
New body plant in India
Buses is still the market leader in the Nordic
Volvo produced 10,440 buses and bus chassis
region and the UK.
(10,406) in 2006. The company decided during
Europe North America South America Asia Other markets Total
2005
2006
6,948 7,142 2,960 4,247 521 2,641 1,632 1,612 661 947 12,722 16,589
2004
7,509 4,910 1,537 2,003 897 16,856
the year to start a joint-venture company in Improved earnings
India that will build a plant in the country for
Net sales in 2006 were largely unchanged
production of bus bodies, primarily for the
compared with a year earlier, SEK 16,856 M
Indian market.
(16,589).
Ambitions 2006
Outcome 2006
Ambitions 2007
• Continue the implementation of the earnings-improvement program.
• The improvement program resulted in increases efficiency in sales and the industrial system globally.
• Continue the implementation of the earnings-improvement program within Volvo Buses.
• A reduction in product costs through such measures as increased standardization and enhancement of the production process.
• Production processes have been simplified and result in shorter production times.
• Renewal of the engine program to meet the requirements of Euro 4 and Euro 5.
• All new engines for Euro 4/Euro 5 are in production.
• Improved customer service through expanded cooperation with dealers and service centers.
• Nearly 100 of Volvo Trucks’ service centers in Europe were selected to also be able to provide service for the buses’ bodies.
• Shorten lead times from order to invoicing. • Further strengthen positions in China and India. • All employees shall be involved in the Operational Development program.
Business areas 2006
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