The step from a focus on a single brand name to a multiple-brand focus    
 

The strength of a brand is contained in its inherited properties
and ability to sustainably live up to given promises.

 

Ever since AB Volvo was founded, “Volvo” has been the key name in building relationships with the outside world. Products and services have been developed with such distinctive customer benefits that this name has long been associated with the core values – quality, safety and concern for the environment – that have been identified strongly with Volvo.

Volvo has taken the step from a focus on a single brand name to a multiple-brand-name focus. As a result, Volvo is now also actively marketing transport-related products and services with brand names other than Volvo.

Before a company acquisition is made, the ability of a prospective Group company to meet the demands imposed by Volvo’s basic brand name strategy is analyzed carefully.

The step to a multiple-brand-name focus does not now involve, nor will it in the future, any change in the fact that the core values constitute the basic building blocks for the Group’s companies and their brand names, as well as the basis for customer loyalty – the customer loyalty which in itself is the most important prerequisite for long-term profitability and growth.

 

 

Greg Melich
  A more homogeneous customer structure    
     

Through the sale of the passenger car business, the Volvo Group focuses on commercial products. This means a more homogenous customer structure which consists of commercial buyers for whom the Group’s products and services constitute an integral and vital part of their business.

Rational buying decisions based on the products’ functions, related support and financial factors – in which working time without unscheduled interruptions constitutes the foundation for earnings capacity – are mixed with value-based rational and emotional demands in connection with the choice of partners and suppliers.

The sharp competition means that customers’ expectations – and those of their customers – must be fulfilled and exceeded continuously; as a result, more integrated cooperation is becoming increasingly important. To yield results, such closer relationships must be based on the common-value system and confidence that can be encompassed in a brand name.

 

 
  Shared ownership of the Volvo brand name    
      In connection with AB Volvo’s sale of Volvo Cars to Ford Motor Company, Volvo Trademark Holding AB was formed, which is jointly owned by AB Volvo and Volvo Car Corporation, whose basic task is to own the Volvo brand name. The company is responsible for registering and protecting the brand name.

A committee containing three representatives from each of the owners is linked to Volvo Trademark Holding AB. The tasks of this committee include coordinating and consulting in issues affecting the owners’ use of the brand name in order to optimize its value.

As a result of the shared ownership of Volvo Trademark Holding AB, the Volvo Group and Volvo Cars are both responsible for ensuring that their common strategic asset, the Volvo brand name with its foundation in the shared core values, is further developed.

Continuing close cooperation with respect to the brand name and its development is an important driving force for growth and profitability in the two companies.

The Volvo Group shares the Volvo brand name and history with Volvo Cars. As a result, the two companies will in many ways also indirectly share the future.
   
     
Usage of the jointly owned brand name
   
      Volvo Cars continues to have the right to use the “Volvo” tradename for passenger cars, minivans carrying up to 10 passengers, light trucks with pay-load up to 1,500 kilograms, sports utility vehicles and other vehicles, but not buses or other vehicles used solely for commercial purposes, that have a gross vehicle weight of 5,400 kilograms (12,000 lbs. gross weight).

AB Volvo continues to have the right to use the brand name for trucks, buses, construction equipment, marine and industrial engines, aerospace equipment and all other products (apart from those which Volvo Cars has the right to use the trademark for).