Volvo Trucks: No Time for Complacency

WARWICK, UK -- January 27, 2015: “Overall, we expected 2014 to be a tough year,” says Volvo Trucks’ UK & Ireland Managing Director, Arne Knaben, “However, after the huge increase in orders towards the end of 2013 to capitalise on the end of Euro-5 vehicles; we feared 2014 would be a very quiet year as buying patterns would be affected by a pull-through of orders. Nevertheless, the year ended a lot better than many anticipated with very positive responses to the new Volvo range of trucks introduced over the last two years and an overall ‘feel good’ improvement in the UK economy.”

He adds “The change to WVTA (Whole Vehicle Type Approval) contributed towards a peak demand in registrations before the implementation date last October and the success of new truck concepts such as the Tridem continue to impress. In fact, during 2014 we took increasing orders for these for brick & block, machinery carriage, mixer, tipper and livestock applications as hauliers sought to increase productivity from a 6x4 or 6x2 rather than a replacement for a traditional eight-wheeler.”

“In addition sales were boosted at the lighter end, with the addition of a new 4-cylinder, 5-litre engine in the FL range - now available from 10-16 tonnes - and the FE range, now enhanced with the option of the industry-leading I-Shift gearbox,” Arne reports.

“With customers finding that the change to Euro-6 was ‘not as bad as they thought’, the whole range of Volvo vehicles sold well last year with over 95% of all registrations being for Euro-6 product. As such, the economic equation of running older vehicles is becoming harder for customers to justify as it brings the added advantages of increasing customer productivity and satisfying an ever-growing awareness in environmental care - one of Volvo’s core values - which has to be good for our industry,” Arne explains.

All in all, Volvo Trucks registered 4,074 heavy trucks in 2014 – down on 2013 – but, according to the SMMT’s recent figures, Volvo’s overall share of the heavy truck market edged up by 0.5%.

Arne however councils against complacency, “We see 2015 as another challenging year when we expect the market will start to stabilise towards ‘more normal’ buying patterns. We see clear signs that there will be a gradual pick up in new truck sales by some 10%-12% next year as the retail distribution, municipal and construction sectors begin to grow in confidence. The upcoming election in May will add to the economic uncertainty during the year ahead, as will the effect of General Safety Regulations with Autonomous EBS and Lane Keeping Support becoming mandatory for all road-going N3 trucks with two or three axles from November.”

Finally Arne notes that in 2014 Volvo Trucks also succeeded in selling a good many low-mileage quality Used Euro-5 trucks. “Many operators sought to beat the Euro-6 upgrade premium when buying replacement vehicles for their fleets and we expect this trend to continue until late 2015.”