Volvo Group Purchasing. VÄLKOMMEN TILL STORA LEVERANTÖRSDAGEN Volvo Group Trucks

Transcription

1 VÄLKOMMEN TILL STORA LEVERANTÖRSDAGEN Volvo Group Trucks

2 Agenda Volvo Group Trucks Volvo Group Trucks Footprint Asia & Product Segments Next Steps

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4 Volvo Group brands

5 Volvo Group Trucks Group Trucks Sales & Marketing EMEA Group Trucks Sales & Marketing Americas Group Trucks Sales & Marketing and JV s APAC Group Trucks Operations Group Trucks Technology Construction Equipment Business Areas Finance & Business Support

6 Volvo FH wins International Truck of the Year sets a new benchmark in the automotive industry

7 Renault Trucks - an impressive delivery The end of a massive investment in renewal of our product portfolio

8 Quester made to go that extra mile The end of a massive investment in renewal of our product portfolio

9 Agenda Volvo Group Trucks Footprint

10 Global Operations GTO s larges sites Columbus Macungie Radford Middletown Hagerstown New River Valley Baltimore Greensboro Eskilstuna Tuve Flen Göteborg Köping Headquarters Skövde Ghent Blainville Limoges Lyon Umeå Bourg-en-Bresse Kaluga Ageo Gunma Bangalore Bangkok Mixed Cab & Vehicle Powertrain Logistic Services Curitiba Pretoria Durban Brisbane

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12 Net sales by Market Area North America Sales 23% Europe Sales 37% Asia Sales 23% South America Sales 9% Other Markets Sales 8% No. of Employees: 98,717 No. of Temporary Employees and Consultants: 16,548 Source: Volvo Group Quarterly Report 2012 Q4

13 Significant growth in Asia 2011 Asia Asia Multibrand Global Volvo brand only Europe/NA focus

14 Agenda Key figures scope

15 Volvo Group Trucks supply chain Key figures 80 billion SEK Automotive Purchasing annual spend 2,400 suppliers in serial production 1,9 billion parts delivered to Group Truck plants annually 28,500 parts PPAP past 12 months 200,000 part numbers with delivery schedule 115,000 persons (FTE annual average) working to deliver parts to Volvo Quality Year Parts per million (PPM) Delivery precision Year Delivery precision (%) % % %

16 2012 Purchasing Spend Indirect Products & Services 28,0 BSEK Sourcing Vehicle 30,8 BSEK Direct Material / Factory: 75,0 BSEK Sourcing Powertrain 20,8 BSEK Sourcing Common Components 18,0 BSEK Vendor 5,2 BSEK Aftermarket 10,0 BSEK total:112,8 BSEK

17 around the world: 1,400 purchasing employees located in 23 countries and 52 sites Other Europe: 110 employees Other North America: 20 employees Sweden: 400 employees North America: 220 employees Other Asia: 20 employees Japan: 100 employees France: 300 employees India: 150 employees China: 100 employees Brazil: 100 employees Australia: 15 employees

18 Agenda Asia & Product ranges Asia Market Outlook Product Ranges

19 World MD/MHD total market* ( 2011 sales volume) China India US Other Asian EU27 Brazil Russia Africa Others LAM Africa 4% 4% Russia 5% Brazil 7% Middle East 4% Japan 3% China 31% Others LAM Middle East Japan EU27 8% Other Asian 8% US 13% India 13% * Definition of MD/MHD varies, mainly covering t. Data source: GTT LTVP 2012

20 World s largest truck markets > 14 tons 1,000 units, 2011 China 881 EU29 India North America South America Russia Germany 61,000 France 41,000 UK 30,000 Spain 13,000 Italy 13,000 India 12% Other 6% EU29 13% Russia 4% North America 11% Middle East Africa China 46% South America 8% Japan

21 Chinese makers dominate the market with ~ 95% of the volumes sold European ~ 1.6% ~12,000 ~900,000 ~4,250 ~11,000 ~2,100 ~20,000

22 and the Japanese brands dominate SEA VT 1,138 RT 55 VT 1,151 VT 523 China ~12,000 Korea VT 298 RT 125 UD 293 ~900,000 ~4,250 VT 205 RT 35 UD1,108 Thailand ~11,000 ~2,100 Taiwan VT 582 RT 193 UD3,996 ~20,000 Malaysia Indonesia *Figures including China, Taiwan, Indonesia, Korea, Malaysia, Thailand Volvo group brands volumes are invoiced numbers

23 Growth from the Japanese & local high end segment Local upgrade segment is growing fast, with emerging local high-end sub-segment AS markets HD market structure Chinese/Indian OEMs are developing more advanced models Increased tie-ups between European, Japanese and Korean makers with Chinese/Indian players Several new advanced products with competitive prices launched

24 We have the product ranges for all customer categories Premium segment Vocational High-endsegment Japan Value segment Basic segment Expectation on total solutions

25 Clear position for each brand gives coverage A PREMIUM SEGMENT (> 95%) Price level Vocational B HIGH-END SEGMENT (95-85%) C VALUE SEGMENT (85-65%) Japan Technology level D (65-40%) E BASIC SEGMENT (<40%) Essential solutions Total solutions INCREASING SOLUTION REQUIREMENT

26 ...but essential to leverage portfolio A PREMIUM SEGMENT (> 95%) Price level PREMIUM-END I. Image driven II. Technology driven III. Holistic approach B C HIGH-END SEGMENT (95-85%) VALUE SEGMENT (85-65%) VALUE I. Operational cost driven II. Network oriented HIGH-END I. Holistic approach II. Operatrional cost driven III. Network oriented Technology level D (65-40%) VALUE BASIC I. Operational cost driven II. Sticker price driven E BASIC SEGMENT (<40%) BASIC I. Sticker price driven Essential solutions Total solutions INCREASING SOLUTION REQUIREMENT

27 New multi-brand dealers up and running

28 Agenda Next steps DongFeng Commercial Vehicles Joint Ventures

29 Volvo Group acquires 45% of Dongfeng Commercial Vehicles

30 Business Opportunities for Volvo and Suppliers Major shareholding in China s leading manufacturer of commercial vehicles DFCV Strong foothold in and share of the world s largest truck market: DFCV delivered 142,000 HD trucks and had a 16% market share in 2011 plus 17% MD Market Share Benefits from cooperation in transmissions, engines, components and future technology Sharing of development costs for the next-generation of engines Building Stronger Partnerships

31 DFCV: A well invested industrial footprint Urumqi Xinjiang A.R. Special purpose trucks and KD assembly Main industrial site: Shiyan Hubei province Beijing Cab plant Frame plant Final assembly plant Heavy-duty CV plant Engine plant No 1 foundry No 2 foundry New HD truck plant Suizhou Hubei province Trucks and superstructures Shanghai Wuhan Hubei province Xiangfan Hubei province Axles Hong Kong Shenzhen Guangdong province Special purpose trucks and superstructures

32 JVs strengthen Volvo Group in China - one of our home markets Total operations 2011, including our partners Total 34,000 employees Dual brand strategy; Volvo and SDLG 12% market share ,000 Volvo & SDLG machines sold in 2011 # 1 position Construction Equipment 41 bn 20 bn 1 bn 4 bn JV with SAIC for city buses JV with SAIC for development of electrical and hybrid buses DFCV: 142,000 HD trucks 49,000 MD trucks Net sales 39 bn RMB DND: assembly of UD trucks Volvo Group: Direct import of Volvo, Renault & Mack trucks Buses Trucks Engines Volvo-Deutz JV Off-road MD engines units in plan Off-road engine hub in Asia

33 SHAPING Thank you! ANOTHER FUTURE