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Will Volvo hold market share?
Page 18
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• Operators are likely to be paying more for Volvo trucks, and ultra-lowcost three-year deals will end under the company's plans for "prudent" financial management.
The company accepts that recent price hikes have hit sales. but Volvo bOSS Albert Hendrikse has called on other manufacturers to put an end to cut-throat leasing deals based on unsustainable and unrealistic residual values Flendrikse says these deals have created an artificia market in the UK and the whole industry is suffering as ; result of "gambling" with short-term deals linked to higi residual values.
it's the most expensive training course the industry ha; gone through," he adds. "We are now setting prudent residu als for three to four years in advance."
Sales of new Volvos with residuals involved in the dea have fallen from a high Of about 30% (a third of all the trucks i sold) to 20%. Hendrikse says he "wouldn't be disappointed" i they fell to nearer 15% next year.
Sales director Martin Cronin believes the company wil hold onto its market share, despite the price increases "There are better ways of helping our customers to keel their costs down [other than high residuals], such as manag ing their spares and servicing."
• CV rental company 80S, which is currently under thi Volvo Trucks umbrella, is to be hived off to AB Volvo. Thk means BRS will become more independent and will be abli to "buy other products", says Albert Hendrikse.
When the change takes effect on 1 January, BRS expected to start sourcing vehicles from Volvo's stable mate, Renault Trucks.
Hendrikse stresses that the current BRS managemenl team has done a "good job"—while BRS was still losim money, it was not as bad as 2001". He admits that Volvi made some mistakes when it took aver the company, sucl as Increasing the size of the fleet too quickly.