Portfolio improvements

Although global economies and financial markets continued to be characterized by uncertainty and volatility during 2011, the VFS portfolio showed strong improvements in customer repayment patterns as evidenced by continued reductions in customer delinquencies, defaults and repossessions. During this period, VFS also successfully reduced inventories of repossessed units as used truck and equipment demand increased.  Reduced credit losses have primarily contributed to VFS’ increased profitability during the year.

Volvo Group unit deliveries strengthened and financing market shares remained stable during 2011.  As a result, VFS returned to growth with a disciplined approach to balancing new business development with risk and cost control.