In order to make full use of the global advantages of Volvo’s truck brands and products, Volvo Group reorganized its existing organization. All truck company sales and marketing management will be divided into three regional organizations and report directly to the CEO. Similarly, the development and manufacturing of all trucks and engines belong to two central units and report directly to the CEO.
For the consideration of customer needs and brand development, Volvo made these changes to strengthen the resilience of organizations and improve efficiency. The new organizational structure was announced on October 4, 2011 at the Volvo Group headquarters in Gothenburg to the top 150 global executives of the group and will be implemented on January 1, 2012.
The Volvo Group has developed steadily over the past decade and has taken the lead in the real world, especially in heavy trucks, construction equipment and diesel engines. However, the development of a company is endless. Now is the time to take the next step. Leveraging on the various truck brands, Volvo has developed mature synergies between its own development and production, allowing us to focus more on customer needs and brand development.
The original market and sales of the four independent truck brands (Volvo Trucks, Renault Trucks, Mike Trucks, and Eudy Trucks) under the Volvo Group will now be divided into three organizational units according to the geographical area.
A. The Group Truck Americas (including South America and North America) will be responsible for the marketing and sales of Group Trucks and Mike Trucks, under the direction of Dennis Slagle, the current President of North American Trucks.
B. The Group Truck Europe, Middle East and Africa will be responsible for the marketing and sales of the Group's trucks and Renault Trucks, and will be governed by the current Volvo Group Chief Technology Officer and Volvo Power Systems President Peter Karlsten.
C. The Group's trucks in the Asia Pacific region (including Asia and the Pacific) will be responsible for the marketing and sales of the Group's trucks and Eudy trucks, and will be run by Joachim Rosenberg, the current President of All Asia Trucks.
The Group’s truck-joint joint venture was merged into a new organization: the Truck Joint Venture, headed by Par Ostberg, the current senior vice president of the Volvo Group and president of Truck Asia, reporting directly to the Europson.
The products, procurement and manufacturing of trucks and engines now run by Volvo 3P and Volvo Power Systems will also be reclassified as two new organizational units, reporting directly to Europson:
A. The product planning, product development, and procurement of trucks and engines will be attributed to a new global development and procurement organization, Volvo Truck Technologies, and will be governed by Torbjorn Holmst, the current CEO of Volvo 3P.
B. All truck and engine manufacturing and logistics services will also be divided into a new global manufacturing architecture - the Group Truck Operations Company, which is headed by Mikael Bratt, CFO of the current group.
Production, product planning and product development in the non-truck business area will remain in the status quo and remain in their respective business areas. Changes in other business areas are as follows:
A. The current president of Volvo Buses Inc., Hakan Karlsson, will become chairman of the government procurement company Volvo Aerospace, Volvo Buses, Volvo Penta and a new business area. The president of the government procurement company will be served by Stefano Chmielewski, the current president of Renault Trucks. The heads of all these business areas will report to Carlson, and Carlson reports directly to Eurof Payson.
B. Carlson will also become chairman of Volvo Construction Equipment, while Pat Olney, president of Volvo Construction Equipment, will continue to report directly to Eurof Payson.
Anders Osberg, current head of finance at Volvo, will succeed Mikael Bratt as the new group’s chief financial officer, reporting directly to Europa Payson. Osboo will also be responsible for the financial affairs of Volvo Financial Services and Volvo Information Technology.
With the introduction of the new architecture, the Group Executive Committee will also make the following adjustments:
Staffan Jufors, president of Volvo Trucks, will retire at the end of 2011. Mr. Satoru Takeuchi will continue to serve as president of Yodio Trucks.
Stefan Johnsson, who is currently responsible for human resources and some other business units, will resign on December 31, 2012. Kerstin Renard, a human resources manager currently working at Staunton, will continue. Duty Group’s human resources report directly to Europason.
Per Lojdquist, senior vice president of corporate communications and branding, will resign on June 30, 2012, but will continue to serve as a consultant until December 31, 2012, when he officially retires. Marten Wikforss, the current media relations and group press officer, will replace Rodriguez.
On January 1, 2012, two new positions that will be reported directly to the Europson will be created, namely Group Strategy Leader and Chief Information Officer. Karin Falk, currently the head of non-production procurement, will serve on the strategy of the group. Mr. Magnus Carlander, the current CEO of Volvo Information Technologies, will serve as chief information officer of the group.
Members of the other group executives, Eva Persson, head of the group's legal affairs, and Jan-Eric Sundgren, head of the group’s public affairs affairs, will retain their seats and their original positions.
Olof Persson, Volvo's chief executive Olof Persson, said that the new changes have made the group's management team younger and welcomed more female members. The group's management team will be more competitive. They are all professionals in their respective fields and together have more than 60 years of overseas work experience.
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