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Mar 04, 2003 | ID: 5263

Volvo Car Corporation Increased in Europe 2002

 

 

 

2002 was characterised by significantly tougher competition, which affected Volvo Cars and other automakers alike. Despite a drop in total sales, Volvo Cars nonetheless succeeded in securing additional market shares on several vital European markets. All told, the company increased its market shares in the EU and EFTA countries. Demand for the new Volvo XC90 has been outstanding and the production rate for the current year will be upgraded from 50,000 to 65,000 cars annually. Volvo Cars sold a total of 406,695 cars in 2002, corresponding to a reduction of 1.4 per cent compared with the year before.

 

The Volvo Car Corporation did not manage to live up to its set sales targets for 2002. In the USA, the company lost both market shares and outright sales compared with 2001. The events of 11 September prompted a widespread price war in the USA involving generous discounts to customers. Volvo Cars chose a different path, focusing instead on profitability instead of short-term price reductions. The company chose to withdraw from unprofitable sales outlets such as car rental agencies, a move that has had a negative impact on overall US sales volumes.

 

The total number of cars registered in the USA dropped by 4 % in 2002 compared with the previous year. However, registrations of light trucks - including the SUV segment - remained unchanged from the year before. Volvo's sales totalled 111,062 cars, corresponding to a reduction of 11.7 per cent compared with 2001.

 

Volvo's first SUV, the Volvo XC90, has received a very enthusiastic welcome the world over, in particular in the USA where the reception has been particularly enthusiastic. The string of successes continued at the Detroit Motor Show, where the Volvo XC90 was named North American Truck of the Year - the most prestigious award on what is in effect the SUV's home ground. Volvo plans to sell just over 45,000 XC90s on the American market in 2003.

 

Sweden follows the vital US market as Volvo Cars' second-most important market. A difficult initial half-year, during which the market share was down to 18 % after the first five months, was transformed into an upbeat second half with sales that totalled 48,675 cars and a market share of 19.8 per cent by year's end.

 

In Europe, Volvo Cars increased its sales by 2.4 % in 2002 compared with the previous year. In Great Britain, the Netherlands and Belgium, sales dropped compared with 2001 levels.

 

At the same time, Volvo increased its sales and market shares in Germany, Italy, Spain and France. In Europe as a whole, Volvo did better than its main competitors, among them Audi, BMW, Mercedes, Saab and Volkswagen.

 

Much of the success in Europe stems from the fact that Volvo now has its very own highly regarded diesel engine in the market's key segment. The proportion of diesel-car sales is rising significantly in Western Europe, increasing last year to 40 per cent as opposed to 36 per cent the year before.

 

Several small markets recorded huge increases in sales in 2002 compared with the previous year. Denmark (+157 per cent), Mexico (+87 per cent), China (+75 per cent), the United Arab Emirates (+66 per cent), South Africa (+64 per cent) and Poland (+33 per cent) were some of the countries showing the biggest sales increases.

 

Among the various models, the Volvo S60 (107,463 cars) and Volvo V70 (94,729) remain the biggest sellers. Both models increased their sales by 10.7 per cent during last year. The Volvo S60 is a major success, with sales in the region of 100,000 cars for the third consecutive year.

 


New products and launches
2002 saw the Volvo S60 R and Volvo V70 R unveiled at the Paris motor show. Volvo Cars has had high-performance cars in the past, such as the Volvo 850 T and V70 R. The new cars take a further step by offering higher performance and greater driving pleasure than ever before. They are powered by 300 hp engines and they feature a unique FOUR-C suspension system that adjusts to suit current driving conditions - from maximum comfort to sporty thrust. The Volvo S60 R and Volvo V70 R enjoyed an excellent reception by the international press during the autumn's test driving sessions. Both versions will be available to order in summer 2003.

 

 

Number of sold cars per market*

Jan-Dec 2002*

Jan-Dec 2001*

 

Nordic Area

66,004

62,408

Benelux/UK

71,503

73,486

Central Europe

56,119

55,888

Southern Europe

43,325

39,214

Europe, total

234,991

230,966

NAFTA

123,792

135,913

Japan

15,242

16,397

VCAP/VCOC**

26,440

23,752

Turist & Diplomat sales

3,972

5,329

Others

298

3

 

Total

406,695

412,390

 

* Sold cars, delivered to end-customers
** VCAP = Volvo Car Overseas Operation, VCOC = Volvo Car Asia Pacific

 

 

Number of cars* per model

Jan-Dec 2002*

Jan-Dec 2001*

 

Volvo S80

42,815

47,844

Volvo V70

94,729

85,574

Volvo Cross Country

35,320

39,508

Volvo C70 Convertible

6,148

7,030

Volvo C70 Coupé

2,208

3,094

Volvo S60

107,463

97,074

Volvo S40

51,388

61,593

Volvo V40

61,475

69,012

Volvo XC90

5,040

0

Others

109

360

 

Total

406,695

412,390

 

 

Volvo Cars, top 10 markets
Sold cars*

 

Market

2002

 

USA

111,062

Sweden

48,675

Germany

41,045

Great Britain

40,580

Italy

18,134

The Netherlands

17,271

Japan

15,242

Spain

13,753

Belgium

10,526

Canada

9,441

 

 

Total market 2002
Registered cars*

Volvo's share of
registered cars*

 

Country

Number

Diff %

2002

2001

 

Sweden

254,589

3.2

19.7

19.8

Great Britain

2,563,631

4.3

1.6

1.6

Germany

3,253,402

-2.6

1.3

1.2

The Netherlands

510,744

-3.7

3.4

3.4

Italy

2,270,900

-5.2

0.8

0.7

Belgium

467,569

-4.3

2.1

2.0

Spain

1,331,878

-6.6

1.0

0.9

France

2,145,073

-4.9

0.4

0.3

Finland

117,037

7.0

7.9

7.4

Switzerland

295,735

-6.6

2.2

2.5

Austria

278,908

-5.0

1.3

1.1

Norway

88,721

-3.5

3.9

3.9

Portugal

226,129

-11.4

1.1

0.9

Denmark

110,887

15.3

3.5

1.5

USA**

16,842,949

-2.0

0.8

1.5

Japan

3,437,949

-2.5

0.4

0.5

 

* Source ACEA apart from USA and Japan
** USA includes light trucks which includes XC70 and XC90

 

 

Number of employees 31 Dec. 2002

 

Sweden

20,613

Göteborg, others

7,978

Torslanda factory

5,115

Uddevalla

706

Köping

1,491

Olofström

2,878

Floby

321

Skövde

2,124

 

Belgium

3,770

 

Market companies and assembly plants*

3,607

Malaysia

302

Thailand

427

South Africa

96

 

Total

27,990

 

* This figure also includes Volvo Cars employees in the Born factory

 

 

Production* per factory and model 2002

 

Factory

S80

V70

S60

XC70

 

Torslanda

40,149

43,954

 

33,577

 

Uddevalla

 

 

 

 

  

Gent

 

45,646

104,450

 

 

Born

 

 

 

 

  

S. Africa

 

 

 

 

  

Thailand

576

240

408

120

 

Malaysia

 

 

528

 

 

Total

40,725

89,840

105,386

33,697

 

 

Factory

 

XC90

S/V40

C70

Total

Torslanda

 

11,346

 

 

129,026

Uddevalla

 

 

 

7,773

7,773

Gent

 

 

 

 

150,096

Born

 

 

108,016

 

108,016

S. Africa

 

 

1,584

 

1,584

Thailand

 

 

216

 

1,560

Malaysia

 

 

48

 

576

Total

 

11,346

109,864

7,773

398,631

 

*Excl pre-production cars

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Descriptions and facts in this press material relate to Volvo Car Group's international car range. Described features might be optional. Vehicle specifications may vary from one country to another and may be altered without prior notification.

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