Volvo announces new organization and management strategies

Jan. 9, 2002
Since Volvo's acquisition of Renault VI and Mack Trucks a year ago, a large part of the operations have been focused on immediate integration programs

Since Volvo's acquisition of Renault VI and Mack Trucks a year ago, a large part of the operations have been focused on immediate integration programs and development of a strategy for the future comprising product plans for both vehicles and engines, according to Volvo information. New forms of organization and management are becoming necessary, and include Volvo Global Trucks integrated with Volvo Group headquarters.

The three truck companies, Volvo Trucks, Renault VI, and Mack Trucks, will become separate business areas and will thereby get more prominent and more distinct roles.

Global Trucks will continue to be a business area within the Volvo Group only with regard to external reporting of financial results. Decided strategies and objectives are not changed by the new organization, which becomes effective immediately.

The other business areas within the Volvo Group are not affected by the changed organization.

Jorma Halonen, president of Volvo Trucks and chairman of Volvo Trucks North America, and Philippe Mellier, President of Renault VI, will report directly to Leif Johansson and will be members of Volvo Group Executive Committee. Michel Gigou, president of Volvo Trucks North America, who is responsible for the integration of truck operations in North America, will become chairman of Mack Trucks and also a member of Volvo Group Executive Committee, reporting to Leif Johansson. Paul Vikner, president of Mack Trucks, will report to Michel Gigou. The present president of Global Trucks, Tryggve Sthen, will continue to serve on the Volvo Group Executive Committee.

Volvo 3P will become a business unit in the Volvo Group with responsibility for product planning, purchasing and product development for the three truck companies. The president of Volvo 3P, Odile Desforges, will report to Lars-Göran Moberg, technical director in the Volvo Group Executive Committee. The other staff units within Global Trucks are being integrated with Volvo Group headquarters.