Volvo Trucks (A): Penetrating the U.S. Market Competition in the world heavy truck industry increased significantly during the 1990s. In order to be successful in this global industry, a manufacturer must have a major presence in all the major markets, including the U.S. market. — CEO, Volvo Truck Corporation, 1998 Volvo, best known for cars, was a leading European heavy truck manufacturer and one of the top three heavy truck competitors in the world in 2000. Beginning in 1975, Volvo had been attempting to penetrate the U.S. heavy truck market. After unsuccessful efforts to enter de novo and through alliance, Volvo acquired the bankrupt U.S. truck manufacturer White Motor Corporation in May 1981, and the heavy truck division of General Motors in 1988. In spite of these efforts, Volvo had never achieved more than a 12% market share. After slipping in 1996, Volvo’s market share rebounded to around 11%, following a series of model changes requiring substantial investment. Profitability, however, remained near break-even. In 2000, Volvo management was considering what needed to be done to make the North American business viable.
