Volvo Truck Brands Get Separate Business Units
Published On Feb 02, 2016
Volvo released a statement stating that they are proposing different business units for its varied truck brands working effectively from March 1, 2016. As told, the proposed business units include Volvo Trucks, UD Trucks, Mack Trucks, Renault Trucks, Value Truck & JVs, Volvo Construction Equipment, Volvo Buses, Volvo Penta, Governmental Sales and Volvo Financial Services.
Addressing the development Martin Lundstedt, President and CEO of Volvo, said, “This is an important change in how we conduct our truck business, with an expanded mandate for our sales organisations to control and develop their businesses with an explicit responsibility for profitability and organic growth.”
He added, "We will gain a simpler organisation in which decisions are made more quickly and in closer cooperation with the customer, while each truck brand will be represented on the Group Executive Board with shared responsibility for optimising Volvo Group's overall truck business."
Mr. Lundstedt further quoted, "The goal of the new governance model is for all of the Group's business areas to be driven along the same distinct business principles, whereby each area can follow and optimise its own earnings performance in both the short and long term."
Volvo's product development, technology and production organization will continue addressing the regular production and development. With this development each brand will get additional resources. Purchasing truck operation will structure into a different unit and will join the executive board of the Volvo Group.