Volvo Group to restructure

Volvo Group has announced it is reorganising its corporate structure to deliver clearer commercial accountability for each of its truck brands.

Four separate business units, each with its own responsibility for profit and loss, will be created: Volvo Trucks, UD Trucks, Mack Trucks and Renault Trucks.

A new-look Volvo Group Executive Board will also be created to reflect the new structure, and will have representation from each of the major business units.

It's the first major change for Volvo Group to be ushered in under new President and CEO, Martin Lundstedt. Previously the President and CEO of Scania, Mr Lundstedt took the reins at Volvo in October, and has replaced former Volvo chief Olof Persson.

Mr Lundstedt said the new structure for Volvo Group would ultimately lead to a more dynamic business.

"This is an important change in how we conduct our truck business, with an expanded mandate for our sales organizations to control and develop their businesses with an explicit responsibility for profitability and organic growth," he said.

"We will gain a simpler organization 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 optimizing Volvo Group's overall truck business."

Volvo says that it's entering a new phase, with a period of acquisitions, restructuring programs and cost-saving measures now transitioning to a "more intense customer focus and a focus on organic growth and improved profitability".

"The efforts in recent years to realize synergies between our various brands have yielded results and created the possibility to now make the Volvo Group the most desired transport solution provider in the world," said Mr Lundstedt.

"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 optimize its own earnings performance in both the short and long term."

The restructure will come into effect from March 1, when the entire Volvo Group will comprise 10 business units: Volvo Trucks, UD Trucks, Mack Trucks, Renault Trucks, Value Truck & JV:s, Volvo Construction Equipment, Volvo Buses, Volvo Penta, Governmental Sales and Volvo Financial Services.

Volvo says the Group's technology and product development organization and production organization for trucks will remain responsible for common development and production, while specific resources will be allocated to each brand. Meanwhile purchasing for the truck operation will form a separate unit and will join the Group Executive Board.

From March 1 the Volvo Group Executive Board will comprise the following members:

Martin Lundstedt, President and CEO
Jan Gurander, Deputy CEO and CFO
Claes Nilsson, Volvo Trucks
Joachim Rosenberg, UD Trucks
Bruno Blin, Renault Trucks
Dennis Slagle, Mack Trucks
Martin Weissburg, Volvo CE
Torbjörn Holmström, Group Trucks Technology
Mikael Bratt, Group Trucks Operations
(Under recruitment), Group Trucks Purchasing
Sofia Frändberg, Group Legal & Compliance
Kerstin Renard, Group Human Resources
Henry Sténson, Group Communication & Sustainability Affairs