Strategy for the period of 2013-2015

Chapter in PDF

 

The Volvo Group’s long-term plans stake out the road to success – to our vision, our target, as well as our wanted position. Our corporate core values, focus areas, strategic objectives, road maps toward targets and activity plans will help us to achieve this as efficiently as possible. In 2012, a new strategy was launched for the period 2013-2015 aimed at achieving the Volvo Group’s targets in the short term and staking out the road to the Group’s wanted position and ultimately, our vision.

  • Reorganization & Strategy
  • Extensive product renewal
  • Execute efficiency program & drive organic growth
  • Deliver profitability improvement

2012 - Reorganization & Strategy

  • Revised Group vision
  • New financial targets
  • New incentive program aligned with financial targets
  • New strategic objectives
  • New organization
  • New management teams
  • New process-oriented workflow
  • New corporate governance
  • New brand positioning

2013 - Extensive product renewal

Massive product renewal executed

  • Volvo - New truck range to strengthen premium position
  • Renault Trucks - New range to strengthen the brand and recapture market position 
  • UD Trucks - New Quester range changing the game across Asia-Pacific
  • Eicher - New range to push heavy-duty trucks in India and for export
  • Volvo Construction Equipment - new Tier 4f engines
  • Volvo Buses - new Euro 6 engines, upgraded coach program and articulated hybrid bus
  • Volvo Penta - new range of industrial engines

Efficiency program launched

  • Industrial footprint reorganization
  • Parts logistics reorganization
  • Product portfolio prioritization and alignment
  • Structural reduction of 4,400 white-collar employees and consultants across the Group

These activities were launched in 2013 but will take effect in 2014 and 2015.

2014 - Execute efficiency program & drive organic growth

Organic growth

  • Leverage new Volvo Trucks range
  • Secure price level on new Renault Trucks range and start to regain market shares 
  • Grow volumes in Southeast Asia for UD with the new Quester range 
  • Maintain positive momentum in Americas

Efficiency

  • Reduce structural headcount among white-collar employees and consultants 
  • Take down R&D costs
  • Improve manufacturing productivity after product renewal
  • Stop activities that do not create value for the customer
  • Strengthen process efficiency

2015 - Deliver profitability improvement

Profitability & organic growth

  • Finalize industrial parts logistics footprint optimization
  • Deliver reduced product cost
    - Purchasing together with R&D
    - Manufacturing
  • Continuously improved white-collar efficiency
  • Push sales – leverage investment in product renewal

Enter 2016 utilizing the full potential of the Volvo Group