Record sales help Volvo profits
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• Record sales last year helped Volvo Trucks GB increase its 1985/86 profits by over 18% to 3.2 million, and raised its turnover by 6% to £162 million.
Managing director Berrit Brandtzaeg says the latest company results are "satisfactory, considering the continuing overcapacity in the commercial vehicle industry and depressed product prices." But profit margins will remain under pressure until the excess capacity is removed.
Volvo Trucks sold a record 9,532 vehicles in 1985 compared with 4,466 in the previous year. However, its share of the market above 16 tonnes GVW dropped slightly from 16.4% to 15.8%, following the introduction of the FL range, which had a "disturbing" effect on initial production.
A two-year investment project to strengthen the Irvine assembly facilities was also completed in the second half of 1985 and has resulted in a 20% improvement in truck building times.
During 1985 Volvo's dealer network maintained its level of business and continued to invest in new facilities.
Following the demand for service and finance-related packages from truck operators the company set up Ailsa Trucks Finance which now provides contract line, lease without maintenance, finance lease and Volvo's Budget account maintenance programme.