As of January 1, 2012, the Volvo Group introduced a new functional organization which better utilizes the global potential of the Group’s brands and products and a new financial framework to reflect the changes in the organization. The re-organization and the new framework impacts to some extent how revenues and expenses are reported in the income statement and between the different reportable segments.
In the new organization from January 1, 2012, the Trucks operations have been structured according to a functional approach, whereby the entire Trucks business is managed as one single business area consisting of five different functional organizations: Group Trucks Sales & Marketing EMEA (Europe, Middle East, Africa), Group Trucks Sales & Marketing Americas, Group Trucks Sales & Marketing APAC (Asia Pacific), Group Trucks Operations and Group Trucks Technology. In addition, a separate unit for Truck Joint Ventures is included in business area Trucks. Business areas Buses, Construction Equipment, Volvo Penta and Customer Finance remain as separate business areas. Governmental Sales and Volvo Rents are treated as separate business areas in the new organization. The Volvo Group is thereby organized in seven business areas after the divestment of Volvo Aero in October 2012. As from October 1, 2012 the separate unit Truck Joint Ventures is included in Group Truck Sales & Marketing APAC. As a result of this change, Group Truck Sales & Marketing APAC is renamed Group Trucks Sales & Marketing and JV’s APAC.
Former business units Volvo Powertrain, Volvo 3P, Volvo Logistics and Volvo Parts are included in business area Trucks from 2012. The costs of these operations are shared between the different business areas based on utilization according to the principles of the new financial framework. As from January 1, 2012 Volvo IT, Group Business Services and Volvo Real Estate are treated as business support functions and costs of operations are shared by the business areas based on utilization according to the principles of the financial framework. As from January 1, 2013, Volvo Real Estate is included in Group Business Services.
The segment information for 2011 have been restated due to the new organization.
Read more about the impact on segment reporting 2011 due to the new organization in note 32.