Volvo 1999 Annual Report Download - page 11

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9
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 relation-
ships must be based on the common-value system and confidence that can be encom-
passed in a brand name.
Shared ownership of the Volvo brand nam e
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 respon-
sible 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 will 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).
Greg Melich
Morgan Stanley
Dean Witter
London, Great
Britain
In recent years,
Volvo has emerged
as a driving force
in the global truck
industry, which
gives a unique posi-
tion. By tak ing ad-
vantage of mana-
gement’s and the
employees’ strong
values, there is an
opportunity to in-
crease value for the
shareholders.
My view of Volvo