Chinese authority approved joint venture between Volvo Group and Dongfeng Motor Group
On January 7, 2014 the National Development and Reform Commission (NDRC) in China gave its approval of the establishment of a joint venture between the Volvo Group and Dongfeng Motor Group Company Limited (DFG). Completion is subject to certain conditions including the approvals of other Chinese authorities. As previously announced, AB Volvo has signed an agreement with DFG to acquire 45% of a new subsidiary of DFG, Dongfeng Commercial Vehicles (DFCV), which will include the major part of DFG’s medium- and heavy-duty commercial vehicles business.
AB Volvo divested Volvo Rents in North America
As part of its strategic effort to focus on the core business, the Volvo Group in December agreed to sell Volvo Rents to the US private equity firm Platinum Equity for approximately SEK 7.0 billion. The transaction had a negative impact on the Group’s operating income of SEK 1.5 billion in the fourth quarter of 2013. The transaction was completed at the end of January and as a consequence net financial debt in the Volvo Group’s Industrial Operation was reduced by SEK 7.0 billion. Volvo CE will continue to sell products to Volvo Rents under the new ownership.
Reduction of white-collar personnel
In the autumn of 2013 a Group-wide efficiency program based on activities related to the implementation of the Group’s strategies was announced. The program will be implemented in 2014 and 2015. In the report for the fourth quarter 2013, which was published on February 6, 2014, it was announced that the detailed analysis of the consequences of the program was finished and that approximately 4,400 white-collar employees and consultants will be affected by personnel reductions, including the previously announced 2,000 within staff and group support functions. White-collar employees worldwide will primarily be reduced in Group Trucks Operations, Group Trucks Technology, Group Trucks Sales and Marketing EMEA, IS/IT, Finance and Human Resources. The majority of the personnel reductions will be implemented during 2014.
Detailed information about the events is available at www.volvogroup.com