Volvo 1999 Annual Report Download - page 7

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5
The Volvo Way
A global development program for employees that we call The Volvo Way was begun
at the end of 1999. The purpose is to create a unified view of the Group’s vision and
objectives, and of leadership and employee relations. The implementation of the Volvo
Way is largely being conducted by groups working with what we call “operational
development”, a method of improving current operations that has had a major impact.
Volvo Cars in good hands
The development of Volvo Car Corporation is also important for the Group’s future.
We received a good price for the company and, in Ford, we have the best possible
partner for the brand name. Volvo Cars now has the resources required to develop
successfully and thereby strengthen the “Volvo” brand name throughout the world. We
will jointly continue to safeguard and enhance the shared values upon which the brand
name was built.
A strong foundation for growth
On the whole, I think Volvo’s organization has done a good job, especially in view of
the substantial changes that we have implemented, which in many cases have been
demanding.
We have made great progress with our improvement efforts. The focus has been on
how we make our purchases, coordinate operations and enhance our products and
services, what we refer to in the Group as “operational excellence.” With the stream-
lining of operations that has taken place in recent years, which has included ten acqui-
sitions, we have created a homogeneous and effective structure.
We have also developed well geographically. When the Asian crisis struck, we
established the objective of emerging from the crisis stronger than we were when it
began. We are in the process of realizing this objective. The most important factor in
this context is the acquisition in South Korea, which has given us substantial additional
expertise with respect to Asian markets and cultures. The operations we are con-
ducting in India and China are also highly important in this regard. Thus, in recent
years, we have expanded our industrial presence in Europe, North America and
South America to also include Asia.
Growth in the areas and industries in which we operate is expected to be strong.
OECD forecasts for transports of goods point to growth of between 2.0 and 2.5
percent per year in Western Europe. It is expected that almost the entire increase will
occur in highway transports. Growth in North America is expected to be similar. The
trend in growth countries – perhaps mainly in Asia – will probably be much higher.
JULY AUGUST
Volvo m ade a bid to acquire
all outstanding Scania
shares.
Volvo Trucks
acquired an interest
in the North
Am erican Petro
Stopping Centers
service chain.