Volvo Group Announces Reorganization

The Volvo Group, Göteborg, Sweden said it has launched a new brand-based organization with clearer commercial accountability for its various truck brands, as well as a new executive board.

Four separate units will be created: Volvo Trucks, UD Trucks, Renault Trucks and Mack Trucks, each with profit and loss responsibility for their respective business. Volvo’s Group executive board will be changed to include representatives from some of the Group’s business areas.

“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,” says Martin Lundstedt, president and CEO of Volvo. “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.

 “The goal of the new governance model is for all of the goup’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,” Lundstedt said.

The group’s production, technology and product development organizations for trucks will remain responsible for common development and production. In addition specific resources will be allocated to each brand, Volvo said. At the same time, purchasing for the truck operation will form a separate unit and will join the group executive board. Volvo said these organizational changes will not have any planned effect on the number of employees in the Group.

The new organization will go into effect on March 1, 2016, when the Volvo Group will comprise ten business areas: 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.

From March 1, 2016, Volvo’s 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; and Henry Sténson, group communication & sustainability affairs.