Volvo streamlines its corporate structure

Feb. 1, 2002
To create a cost-effective structure with fewer levels, Volvo Global Trucks will be integrated with Volvo Group headquarters. The three truck companies

To create a cost-effective structure with fewer levels, Volvo Global Trucks will be integrated with Volvo Group headquarters. The three truck companies — Volvo Trucks, Renault VI, and Mack Trucks — will become separate business areas.

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 the 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 a member of the Volvo Group Executive Committee reporting to Johansson. Paul Vikner, president of Mack Trucks, will report to 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. Odile Desforges, president of Volvo 3P, will report to Lars-Göran Moberg, technical director on the Volvo Group Executive Committee.

The other staff units within Global Trucks are being integrated with Volvo Group headquarters.

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

Other business areas within the Volvo Group are not affected by the changes.