Volvo Car Corporation. Sales and production statistics 1998

VOLVO CAR CORPORATION. SALES AND PRODUCTION STATISTICS, 1998 Invoiced sales of Volvo cars in 1998 amounted to 399,700 units, an increase by 3% compared to 1997. Sales trends were very positive in Europe and North America. However, in Japan and South-East Asia sales dropped for the second consecutive year due to the Asian crisis. The world market in 1998 In 1998 the total market for cars in the world increased by approximately 1% to 37,9 million units (37.5). The North American market declined by 1%, whereas the European market rose by 6.6%. In Japan, the market decreased by 12%. Volvo's share of the total market was approximately 1%, but in the large car segment, which includes the Volvo S70 and V70, the Volvo S80, the Volvo S90 and V90 and the Volvo 940, Volvo's share was 7% in Europe (8.2), 11.5% in North America (10.9) and 2.1% in Japan (2.1). In the medium-size class, which includes the Volvo S40 and V40, Volvo's share in Europe was 4.3% (3.6). Positive figures for North America 1998 was Volvo's best year in North America in eleven years. Sales increased by over 9% despite the fact that the product range was narrower than before. The gap in sales caused by the loss of the Volvo S90 and V90 was closed by a substantial increase in sales of the Volvo 70 series, especially the four- wheel drive models Volvo V70 AWD and Volvo V70 XC. The Volvo S80 saw a strong introduction in the end of the year with 6,600 cars sold. st nd Sweden - Volvo 1 and 2 In Sweden, registrations of new cars rose by 12% to 253,300 (225,300) units. The number of Volvo cars registered rose by 4% to 53,600 (51,400), while the market share fell from 22.8% to 21.2%. Eventhough Volvo S/V90 and 940, which scored second best in the registration figures for 1997, were phased out in the beginning of 1998, the sales of the 40-and 70-series more than enough compensated for this decline. Moreover, the sales of the new Volvo S80, with its 1,860 registrations, exceeded expectations. Positive sales trend in Europe For the second year in a row, Europe showed a positive trend in sales which increased the registrations of Volvo cars by 6.6% to 240,500 (230,900). In Germany, which now has advanced to Volvo's third largest market, the number of Volvo cars registered increased by 15% to 42,400 (37,000). The Volvo S40 and V40 accounted for 23,200 cars. In the highly competitive UK-market, Volvo cars registrations dropped by 7.5% to 37,700 (40,700). However, in the fourth quarter Volvo took a very healthy 2.3% market share up from a cumulative 1.5% in the first nine months. This improved the year end figure to 1.7% (1.9). Product-wise, Volvo V70 continued to dominate the UK large estate segment despite increased competition. The steadily increasing market interest in Europe for diesel cars could be mirrored in Volvo cars registration figures for France and Belgium, where registrations increased by 29.5% to 9,800 (7,600) respectively 27% to 11,700 (9,200). In Switzerland, registrations increased by 20.4% to 8,400 (7,000). Continued decline in South-East Asia and Japan Due to the Asian crisis, 1998 was a difficult year for Asia in general. The total car market fell by 47% and the luxury segment dropped by 51%. However, relative to the competition, Volvo performed well. Volvo's market share increased in Taiwan and Hong Kong; and sales volume increased in Hong Kong and China. In China, Volvo has increased its sales volume over 3 consecutive years. For South East Asia, Volvo maintained its market share at the 1997 level. In Japan, sales of Volvo cars dropped by 18% to 16,300 (19,900). Manufacture Total output of Volvo cars during the year amounted to 398,500 units (387,400), whereof 151,700 (145,200) in Belgium; 86,000 (116,100) in Sweden; 150,900 (115,000) in the Netherlands; 8,200 (7,100) in Canada and 1,700 (4,000) in South-East Asia. Manufacturing output by model series was as follows: Volvo S90/V90 - 4,300 (29,950), Volvo 940 - 3,500 (39,350), Volvo S80 - 32,800 (N/A), Volvo S70/V70/C70 - 206,900 (203,100) and Volvo S40/V40 - 151,000 (115,000). Invoiced sales of Volvo cars Invoiced units per model 1998 1997 Change in % Volvo S40 & V40 151,300 114,100 33 Volvo S70 & V70 201,600 203,700 -1 Volvo C70 9,200 900 922 Volvo S80 21,800 0 Volvo 940 6,700 39,400 -83 Volvo S90 & V90 9,100 28,300 -68 Total 399,700 386,400 3 Invoived units per market area 1998 1997 Change in % Europe 255,500 240,000 6 North America 110,700 102,000 9 South America 1,900 2,300 -18 Asia 25,000 36,100 -31 Miscellaneous 6,600 6,000 9 Total 399,700 386,400 3 The Volvo Car Corporation's 10 largest markets Market Registration Registration M/S M/S s 1998 s 1997 1998 1997 USA 100,200 90,000 1,23 1,09 Sweden 53,600 51,400 21,15 22,84 Germany 42,400 37,000 1,14 1,04 United Kingdom 37,700 40,700 1,68 1,88 Italy 24,200 25,300 1,02 1,04 The Netherlands 19,400 19,200 3,58 4,02 Japan 16,300 19,900 0,52 0,56 Belgium 11,700 9,200 2,59 2,33 Spain 10,600 10,400 0,88 1,02 France 9,800 7,600 0,51 0,44 The figures of 1998 could be subject to minor adjustments. The figures of 1997 are definite. Products Due to the substantial demand for the Volvo S40 and V40 in Europe, the NedCar plant, had to step up its production from 115,000 to 150,900 units last year. Furthermore, in order to meet demand from South-Africa and neighbouring markets, assembly of Volvo S40 and V40 will begin in Botswana during 1999. In addition to the already strong line-up of the Volvo 40-series, the Volvo S40 1.8i and V40 1.8i were launched in the beginning of 1998 as the first Volvo car models with direct-injection petrol engines. At Paris Motor Show, Volvo's popular models, Volvo V70R AWD, Volvo V70 AWD and Volvo V70 XC, were accompanied by a fourth four-wheel drive derivate; Volvo S70 AWD. In May 1998, the Volvo S80 was launched as the first car on Volvo's new large platform to be produced at the Torslanda Plant in Göteborg. The Volvo S80 earned a number of distinctions during the year, including the Prince Michael Road Safety Award for the innovative Inflatable Curtain. Moreover, the Volvo S80 was also awarded "The Most Beautiful Car in the World" by the Italian organization and magazine Automobilia. January 26, 1999 Production 1998 Model Torslanda Ghent AutoNova Halifax Asia* NedCar TOTAL S70 35.200 38.100 5.900 79.200 V70 92.300 2.300 94.600 V70 XC 21.300 21.300 TOT. 35.200 151.70 8.200 1.200 196.300 S70/V70 0 940 900 900 Sedan 940 2.600 2.600 Wagon TOT. 3.500 3.500 940 S90 3.100 3.100 V90 800 800 TOT. 3.900 400 4.300 S90/V90 C70 9.200 9.200 Coupé C70 1.400 1.400 Convert ible TOT. 10.600 10.600 C70 S40 58.700 58.700 V40 92.200 92.200 TOT. 100 150.900 151.000 S40/V40 S80 32.800 32.800 TOTAL 75.400 151.70 10.600 8.200 1.700 150.900 398.500 0 *Incorporates Thailand, Malaysia, Indonesia & the Philippines ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/01/26/19990126BIT00490/bit0001.doc http://www.bit.se/bitonline/1999/01/26/19990126BIT00490/bit0002.pdf