 The Company’s new truck deliveries are summarized below: The truck market in the U.S. and Canada in 2011 improved from the recessionary levels of 2010, reflecting higher  freight volumes and the need to replace an aging truck fleet. Industry retail sales in the heavy-duty market in U.S.  and Canada increased to 197,000 units in 2011 compared to 126,000 units in 2010. The Company’s heavy-duty  truck retail market share was a record 28.1% in 2011 compared to 24.1% in 2010, reflecting overall strong demand  for the Company’s premium products and increased deliveries to large fleet customers. The medium-duty market  was 61,000 units in 2011 compared to 41,000 units in 2010. The Company’s medium-duty market share was 12.4%  in 2011 compared to 13.5% in 2010. The 15-tonne and above truck market in Western and Central Europe was 244,000 units compared to 183,000 units in  2010. The Company’s market share was a record 15.5% in 2011 compared to 15.2% in 2010, reflecting improvement in  the U.K., Germany and Central Europe. DAF market share in the 6- to 15-tonne market in 2011 was 8.9%, compared to  7.7% in 2010. The 6- to 15-tonne market in 2011 was 57,000 units, compared to 51,000 units in 2010. Sales and revenues in Mexico, South America, Australia and other markets increased in 2011 primarily due to  higher new truck deliveries in Mexico and the Andean region of South America.  The major factors for the change in net sales and revenues, cost of sales and revenues, and gross margin between  2011 and 2010 follow: • The higher truck delivery volume reflects improved truck markets and higher market share. The increased  demand for trucks also resulted in higher average truck sales prices which increased sales by $567.7 million.  • Cost of sales increased $303.4 million due to a higher average cost per truck, primarily from the effect of EPA  2010 engines in the U.S. and Canada.  • Factory overhead, warehouse and other indirect costs increased $273.6 million primarily due to higher salaries  and related costs ($169.4 million) and manufacturing supplies and maintenance ($84.8 million) to support  higher production levels. NET  COST  GROSS ($ in millions) SALES  OF SALES  MARGIN 2010 $ 9,237.3  $ 8,125.5  $ 1,111.8 Increase (decrease) Truck delivery volume 4,739.9 4,050.5 689.4 Average truck sales prices 567.7 567.7 Average per truck material, labor, and other direct costs  303.4 (303.4) Factory overhead, warehouse and other indirect costs  273.6 (273.6) Aftermarket parts volume  258.8 157.8 101.0 Average aftermarket parts sales prices  69.5 69.5 Average aftermarket parts direct costs  41.8 (41.8) Currency translation  334.5 289.4 45.1 Total increase 5,970.4  5,116.5 853.9 2011 $ 15,207.7  $ 13,242.0  $ 1,965.7 Year ended December 31, 2011  2010  % CHANGE United States  59,400 29,100 104 Canada  10,500 6,100 72 U.S. and Canada  69,900 35,200 99 Europe  51,100  31,200 64 Mexico, South America, Australia and other  17,000 12,400 37 Total units  138,000  78,800 75