Volvo Group restructures its truck business and launches new organization


Volvo Group restructures its truck business and launches new
organization

The Volvo Group is to have a new organization which better utilizes the
global potential of the brands and products within the truck operations.
For example, the sales and marketing of all of the truck companies will
be organized in three regional organizational units, directly under the
CEO. In the same manner, all product development and production of
trucks and engines will be placed in two new central organizational
units under the CEO.
“We are doing this to achieve a more agile and efficient organization
with greater focus on our customers and brands,” says Volvo's CEO Olof
Persson.
The new organization will be in place as of January 1, 2012.

The organizational change is being presented today to the Group's 150
most senior managers at a meeting in Gothenburg.
“The Volvo Group has seen fantastic development in the past decade and
has grown into a truly global and leading player, particularly in the
areas of heavy trucks, construction equipment and diesel engines,” says
Olof Persson. “But a company's work is never done and it is now time for
the next step, using improved coordination between our truck companies
and our development and production units to achieve even more distinct
and better focus on our customers and brands.”

Having previously been divided into four different brand companies,
Volvo Trucks, Renault Trucks, Mack Trucks and UD Trucks, marketing,
sales and brand responsibility for the truck companies will now be
conducted in three new geographic, organizational units reporting
directly to Olof Persson:

  · Group Trucks Sales and Marketing Americas (comprising all of North
andSouth America) with global responsibility for the Mack brand, under
the leadership of Dennis Slagle, currently President of North American
Trucks.
  · Group Trucks Sales and Marketing EMEA (comprising Europe, the Middle
East andAfrica) with global responsibility for the Volvo and Renault
brands, under the leadership of Peter Karlsten, currently President of
Volvo Powertrain and Chief Technology Officer for the Group.
  · Group Trucks Sales and Marketing APAC (comprisingAsia and Pacific)
with global responsibility for the UD Trucks brand, UD, under the
leadership of Joachim Rosenberg, currently President of Asia Truck
Operations, ATO.

The responsibility for the Group's various joint-venture companies in
the trucks area will be organized in a new organizational unit, Truck
Joint Ventures, under the leadership of Pär Östberg, currently
responsible for Trucks Asia. Truck Joint Ventures will also report
directly to Olof Persson.

Product, purchasing and production for trucks and engines, which is
currently the responsibility of Volvo 3P and Volvo Powertrain, will be
organized in two new organizational units reporting directly to Olof
Persson:

  · Product planning, product development and purchasing for trucks and
engines, will be organized in a new global development and purchasing
organizational unit, Group Trucks Technology under the leadership of
Torbjörn Holmstöm, currently President of Volvo 3P.
  · All production of trucks and engines and all logistic services, will
be placed in a new global production organization, Group Trucks
Operations, under the leadership of Mikael Bratt, currently Group CFO.
Production, product planning and product development for the non-truck
business areas will remain with their respective business area.

Some changes will also be made in relation to the other business areas:

  · Håkan Karlsson, currently President of Volvo Bus Corporation, will
become chairman of Volvo Aero, Volvo Buses and Volvo Penta and of a new
business area, Governmental Sales. The head of Governmental Sales will
be Stefano Chmielewski, currently President of Renault Trucks. The heads
of all of these business areas will report to Håkan Karlsson, who will
continue to report to CEO Olof Persson.
  · Håkan Karlsson will also be chairman of the board of Volvo
Construction Equipment whose President, Pat Olney will continue to
report to Olof Persson.

Anders Osberg, currently head of Volvo Treasury, succeeds Mikael Bratt
as new CFO and will report directly to CEO Olof Persson. A new feature
of the finance function is that Osberg will also be responsible for
Volvo Financial Services and Volvo IT.

In conjunction with the introduction of the new organization, the
following changes will be made to Volvo's Group Executive Committee:

Staffan Jufors, President of Volvo Trucks, will retire at the end of the
year. Satoru Takeuchi, continues as President of the legal company UD
Trucks.

Stefan Johnsson, currently responsible for HR and a number of business
units, will leave the Group on December 31, 2012. Kerstin Renard,
currently HR manager reporting to Stefan Johnsson, will assume a new
position as responsible for HR reporting directly to Olof Persson.

Senior Vice President Communication & Brand Management Per Löjdquist
will leave his position at June 30 next year, but will remain as advisor
until December 31, 2012, when he will retire. He will be succeeded by
Mårten Wikforss, currently responsible for Media Relations and Corporate
News at AB Volvo.
On January 1, two new positions will also be introduced, reporting
directly to Olof Persson, a head of strategy and a Chief Information
Officer, CIO.

Karin Falk, currently head of the NAP business unit (Non-Automotive
Purchasing) is appointed head of strategy. Magnus Carlander, currently
head of Volvo IT, has been appointed new CIO.

Other members of the Group Executive Committee, Eva Persson, General
Counsel, and Jan-Eric Sundgren, head of Public Affairs, remain in the
Group Executive Committee and retain their current areas of
responsibility.

“At the same time as we will have a rejuvenation of Group management, we
will also include more women, which is highly gratifying,” says Olof
Persson. “I will have an incredibly competent Group management team,
with good breadth and, collectively, more than 60 years' experience of
serving abroad. I am really looking forward to working with them.”

Volvo Group Executive Committee from January 1, 2012:

Name:                  Responsibility:
Olof Persson           CEO
Dennis Slagle          Region Americas
Peter Karlsten         Region EMEA
Joachim Rosenberg*     Region APAC
Mikael Bratt           Group Trucks Operations
Torbjörn Holmström*    Group Trucks Technology
Pär Östberg            Truck Joint ventures
Pat Olney              VCE
Håkan Karlsson         Business Areas
Anders Osberg*         Finance and Business Support
Eva Persson            Legal
Kerstin Renard*        Human Resources
Karin Falk*            Group Strategy
Magnus Carlander*      CIO
Per Löjdquist**        Communication
Jan-Eric Sundgren      Public Affairs

* New GEC member
** Leaving July 1, 2012. Will be succeeded by Mårten Wikforss.

October 4, 2011

For further information, please contact Mårten Wikforss, +46 31 66 11 27
or +46 705 59 11 49.

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AB Volvo (publ) may be required to disclose the information provided
herein pursuant to the Securities Markets Act and/or the Financial
Instruments Trading Act.The information was submitted for publication at
11.40 a.m. October 4, 2011.

The Volvo Group is one of the world's leading manufacturers of trucks,
buses and construction equipment, drive systems for marine and
industrial applications and aerospace components. The Group also
provides complete solutions for financing and service. The Volvo Group,
which employs about 100,000 people, has production facilities in 19
countries and sells their products in more than 180 markets. In 2010
annual sales of the Volvo Group amounted to about SEK 265 billion. The
Volvo Group is a publicly-held company headquartered in Göteborg,
Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm. For
more information, please visit www.volvogroup.com or www.volvogroup.mobi
if you are using your mobile phone.

 

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