1. What will the new organization bring that is so much better?
Governance will become clearer and more efficient with a clearer focus on brands and customers. Branded companies in the truck business previously operated as both independent units and part of a wider Group structure. The branded companies’ operations, product planning, product development and manufacturing are now coordinated centrally, directly under the CEO, with a clear division of responsibilities and minimum overlaps.
2. What happens to Volvo Trucks, Renault Trucks, Mack and UD Trucks?
Sales and marketing of all of the truck companies is organized in three regional organizational units. Group Trucks Sales and Marketing Americas (comprising all of North and South America) with global responsibility for the Mack brand, under the leadership of Dennis Slagle. Group Trucks Sales and Marketing EMEA (comprising Europe, the Middle East and Africa) with global responsibility for the Volvo and Renault brands, under the leadership of Peter Karlsten. Group Trucks Sales & Marketing APAC (comprising Asia and Pacific) with global responsibility for the UD Trucks brand, UD, under the leadership of Joachim Rosenberg. All product development and production of trucks and engines is organized in two new central units: Group Trucks Technology and Group Trucks Operations. There are no changes to the financial external reporting – truck companies report their earnings combined as previously.
3. What happens with Volvo CE?
The organization remains intact. The Head of Volvo CE, Pat Olney, continues to report directly to the CEO, Olof Persson. With respect to financial external reporting, there is no change – the business areas report their results as in the past.
4. What happens with Volvo Buses, Volvo Penta and Volvo Aero?
The companies are organized under Business Areas, headed by Håkan Karlsson. Per Carlsson has assumed the position as new Head of Volvo Buses. Göran Gummeson remains Head of Volvo Penta until April 1, 2012 when he is succeeded by Björn Ingemansson, but he no longer reports directly to the CEO. Staffan Zachrisson remains Head of Volvo Aero but does not any longer report directly to the CEO. With respect to financial external reporting, there is no change – the business areas report their results as in the past.
5. What happens with Volvo Financial Services?
The company is organized under Finance and Business Support headed by the new CFO Anders Osberg. Martin Weissburg continues to head Volvo Financial Services but does not any longer report directly to the CEO. With respect to financial external reporting, there is no change – the business areas report their results as in the past.
6. What happens with the different business units?
Production is organized under Group Trucks Operations headed by Mikael Bratt, while product development is under Group Trucks Technology headed by Torbjörn Holmström. Volvo Parts has been divided into various units based on their specific operations. The logistics portion of Parts, as well as Remanufacturing, falls under Group Trucks Operations. Purchasing is organized under Group Trucks Technology, where all other purchasing activities are collected.
Volvo Logistics falls under Group Operations, where all logistics are handled.
Volvo Business Services, Volvo IT and Volvo Group Real Estate are organized under Finance and Business Support.
Volvo Technology and Non-automotive Purchasing (NAP) are organized under Group Trucks Technology.