1. Volvo Trucks:
Penetrating the US Market
Presented by:
Akhilesh Nair
Jyoti Mehta
Mehul Jindal
Murali Mudambi
Prarthana Verma
Sriram Thwar

2. About Volvo Group
• European heavy truck manufacturer, best known for cars
• First passenger cars introduced in 1927
• Trucks added to the product range in 1928
• Later diversified, having product ranging from cars, trucks,
buses, jet engines and marines
• Mid 1975, focused on penetrating into US market
Product, 0
Others, 24
• Corporate sales in 1998, $27B Cars, 48
Trucks, 28

3. About Volvo Group(Cont.)
• Sold off car business to Ford, in 1999
• Manufacturer of transport solutions for commercial use
• Market share in 2000, 10.6% in US & 14.9 in Europe

4. Major Players in Market
Source: Case Study

5. Reasons to enter US Market
• Presence in US will result into a “GLOBAL PLAYER”
• Attractive opportunities offered by US Geography & Transportation
business for a player like Volvo
• Highest sales of 45% in 1980 compared to other regions
• Result into to a global advantage over its competitors not only in US
but also show a strong position over its European competitors

6. Penetrating Strategy
• Maintain dealership, acquisition, integration & producing premium
products:
o Initially, sold medium trucks through existing dealer networks of cars
focused only to 13 major states in 1975
o Teaming up with Freightliner in 1978 which ended early
o Acquired bankrupt White Motor Corp.(WMC) for $70M in 1980
• Customer Focus Strategy by improving customer & dealer relations
• Integral Sleeper vehicles (having driving & sleeping compartments)
• Maintained White/AutoCars Name plate to portrait as US brand
• Communication Strategy to convey VWMC’s changed ownership &
better quality

7. Penetrating Strategy(Cont.)
• Acquiring GM’s truck business to push up sales in 1988
• Positioning as a new brand called “WHITEGMC”
• Introduction of “Volvo Financial Services” in 1995, focusing on
flexible finance and lease options for Volvo Group dealers and
customers
• Invested in production, marketing & operational changes for
launching new VN series
• Increase in the proportion of Volvo engines in the market

8. Reasons for Failure
• Difference in basic configuration of the products
o US Customer demanded for conventional trucks , while European had
Cab-over designed trucks
o US had gasoline engines while European offered Diesel engines
o US driver favored unsynchronized gearboxes while European offered
synchronized gearboxes
• Unwillingness to acquire technological leader Freightliner, in 1980
• Acquiring of relatively weak brands such as WMC and GM
• Irregular investment of money in few sectors

9. Recommendations for 2000
 Entering further into global markets such as Asia & Africa
 Inaugurating new operational offices to strengthen its global presence
 Collaboration with local business partners
o Local manufacturing
o Sales and distribution
 Coordination
o Coordinated for common brand name & product development
 Decentralization
o Dispersed for adaptation of local culture, regionalization of
processing and assembling facilities
 Developing more fuel efficient vehicles
 Provide full-service leases, finance leases, contract maintenance agreements
and rentals
 Developing customer care centers for help in case of an emergency
breakdown

10. Current Market Share (2011)
Market Share in US & Canada*
*Source: Volvo Webpage

11. What’s Next…
Volvo Vision 2020 - Concept Trucks

12. Thank You!!