Volvo, Iveco, MAN, and Scania: sales up 39% in 2010 and 35% in 1st half 2011

Iveco and Scania develop engine that meets Euro VI, while Volvo launches heavy hybrid truck

2011/09/06

Summary
Volvo: launches green vehicles including a methane-diesel truck and a heavy hybrid truck
Iveco: meets Euro VI emission standards that will come into effect in 2014 with urea SCR technology
MAN: markets trucks under a new brand with Sinotruk in China and starts production of trucks in Russia in 2012
Scania: develops an engine that meets Euro VI new emission standards by utilizing EGR and SCR technology

Summary

In 2010, four commercial vehicle (CV) manufacturers in Europe, Volvo, Iveco, MAN, and Scania, increased their sales by about 39% from 2009, when their sales halved due to recession. In the January-June period of 2011, their sales continued to increase by about 35%. Volvo estimates that the scale of the 2011 heavy truck market will grow by 15-20% in Europe and will continue to be expanding in emerging markets such as Russia and Brazil. Concerning the 2011 revenues, Iveco forecasts a 13% increase and MAN 15-20%, while Scania estimates recovery to continue.

In Europe, a new emission regulations, Euro VI, will come into force starting in January 2014 for all medium-/heavy commercial vehicles. As part of its measure against the new regulation, Iveco announced an engine that meets Euro VI with urea SCR technology, while Scania unveiled an engine with urea SCR and EGR. Volvo launched a truck that runs on methane gas and diesel fuel and a heavy hybrid truck.

In increasingly important emerging markets, Volvo has won a contract for hybrid buses in Brazil while Iveco unveiled a new model in the medium segment in Brazil. MAN started production of trucks in Russia and will market a heavy truck in China under a new brand with Sinotruk.

In the meantime, Scania will boost production capacity of its truck plant in Sweden by 20% to 120,000 a year in order to prepare for an increase in demand in the future.

Volvo/Iveco/MAN/Scania: Sales volume, sales, and operating profit

			2006	2007	2008	2009	2010	Jan.-Jun. 2010	Jan.-Jun. 2011
Volvo	Sales volume	Vehicles	230,291	246,272	261,088	137,538	190,218	84,402	120,639
	Sales	1 million SEK	258,835	285,405	304,642	218,361	264,749	127,382	150,539
	Operating profit	1 million SEK	20,399	22,231	15,851	(17,013)	18,000	7,569	14,170
Iveco	Sales volume	Vehicles	181,500	211,700	192,100	103,900	129,600	61,237	74,960
	Sales	1 million Euro	9,136	11,196	10,894	7,183	8,307	3,791	4,558
	Operating profit	1 million Euro	546	813	838	105	270	53	206
MAN	Sales volume	Vehicles	87,160	100,609	103,705	82,609	126,279	57,474	75,676
	Sales	1 million Euro	8,685	10,410	10,610	7,807	10,586	4,820	6,078
	Operating profit	1 million Euro	670	1,010	1,056	51	528	180	475
Scania	Sales volume	Vehicles	65,281	75,878	73,793	43,443	63,712	28,321	40,300
	Sales	1 million SEK	70,738	84,486	88,977	62,074	78,168	37,105	43,665
	Operating profit	1 million SEK	8,753	12,164	12,512	2,473	12,746	5,632	6,652
Total sales volume of four companies		Vehicles	564,232	634,459	630,686	367,490	509,809	231,434	311,575

Source: Four companies' Annual Report 2010, Interim Report Q2 2011
(Note) MAN is the CV division of the MAN Group. SEK stands for Swedish Krona. The exchange rate is about 0.11 Euro or 12 yen per 1 SEK as of late August 2011.

(Reference) Number of registered new medium/heavy duty CVs in Europe

(vehicles)

GVW	Regions	2007	2008	2009	2010	Jan.-Jun. 2010	Jan.-Jun. 2011
3.5t＜≦16t	18 Western European countries	404,615	406,216	255,691	259,388	32,779	37,790
	New EU members	72,734	64,459	23,303	30,712	2,435	2,984
	Europe total	477,349	470,675	278,994	290,100	35,214	40,774
16t＜	18 Western European countries	289,599	291,012	172,432	176,335	71,289	104,330
	New EU members	55,347	47,122	14,967	22,271	8,163	18,828
	Europe total	344,946	338,134	187,399	198,606	79,452	123,158
Total	18 Western European countries	694,214	697,228	428,123	435,723	104,068	142,120
	New EU members	128,081	111,581	38,270	52,983	10,598	21,812
	Europe total	822,295	808,809	466,393	488,706	114,666	163,932

Source: ACEA (Association des Constructeurs Europeens d'Automobiles g.i.e.)
(Note) 1.	Eighteen Western European countries mean 15 original EU countries plus Norway, Switzerland and Iceland.
2.	New EU member countries are Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Hungary, and Bulgaria.
3.	The data in January-June 2010/January-June 2011 do not include medium-sized/large buses. The number of registered medium-sized/large buses in Europe is 17,672 in January-June 2010 and 17,058 in January-June 2011.
4.	The global production of heavy trucks and buses (according to the OICA statistics) is introduced at the end of the Report for the readers' reference.