The Industrial Operations’ investments in fixed assets and capitalized R&D during 2011 amounted to SEK 12.6 billion (10.3).

Capital expenditures in Trucks amounted to SEK 8.4 billion (7.2). The capital expenditures within Trucks consist to a large extent of investments related to product renewals in our product program, with product development activities and required adaptations in the plants. In the plants there are also ongoing investments aiming for increased capacity and flexibility, mainly in the cab plant in Umeå, Sweden, and in the engine plants with machining and assembly processes in Skövde, Sweden, and Ageo, Japan. During 2011 we have also invested in the dealer network and workshops, mainly in Europe and Asia, as well as in our joint venture VE Commercial Vehicles (VECV).

Capital investments for Construction Equipment amounted to SEK 1.9 billion (1.4). As for previous year, the majority of the investments refer to expansion of the excavator business for both Volvo brand and SDLG brand. During 2011 mainly China and Korea have been impacted, in capacity investments in machining and assembly area. Product related investments during the year refer to the emission regulations in Europe and North America, and Tier 2 and Tier 3 requirements for new models in the BRIC countries.

The investments within Volvo Aero was during 2011 SEK 0.5 billion (0.8). The majority of the investments refer to the involvement in the new engine programs, PW1100G and PW1000G with Pratt & Whitney, and Trent XWB with Rolls-Royce. The investments also refer to finalization of a number of investments in Volvo Aero’s production facilities in order to secure the capacity required for the XWB and GP7000 program (P&W), and rationalizations in the spool shop.

The investments in Buses were SEK 0.3 billion (0.2), and in Volvo Penta SEK 0.2 billion (0.2).

Investments in leasing assets amounted to SEK 1.4 billion (0.3), the increase versus previous year refers mainly to expansion of the rental fleet as well as replacement of existing fleet. 

For 2012, the Volvo Group estimates that investments in property, plant and equipment will be around SEK 10 billion. The investment level is however pending the market development, and in order to be able to adapt the level, the ongoing and future investments are continuously reviewed and prioritized. The investments in coming product programs continue during 2012, as well as the expansion of the business in the BRIC countries.