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Annual Report 2008

It is not enough to manufacture and sell high-quality products for the Volvo Group to realize its vision to become world leader in commercial transport solutions.

Many customers want long-term cooperation around total solutions to execute their work as efficiently as possible with maximum profitability and up-time. Consequently, when choosing suppliers of vehicles or machinery, the offering of supplementary services combined with excellent products and high availability is to a great extent crucial.

Accordingly, the Volvo Group is offering such services as financing and insurance, various forms of service agreements, accessories and spare parts to support core products. The Volvo Group’s increasingly broad range of these so called soft products now has evolved into a more distinct competitive advantage.

Strengthening the soft products offering is an important way for the Volvo Group to:

  • Satisfy customers’ demands and requirements throughout the entire lifecycle of the product and thus create a closer, long-term relationship with them.
  • Increase sales of supplementary services and products with sustainable profitability.
  • Enhance earnings stability by increasing the share of revenues that is less cyclical than sales of new "hard" products.
  • Differentiate itself compared with competitors by adding customer value throughout the entire product lifecycle.
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