Volvo 2008 Annual Report Download - page 15

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Implemented in 2008
Profi table growth
•
Focus on fl exibility and quick adjustment of costs
to lower demand.
•
Increased focus on services relating to fi nancing
and aftermarket.
•
Expansion of the dealer and service networks.
•
Focus on further capitalizing on the presence in
Asia.
• Regularly evaluate potential acquisitions that could
strengthen the position in strategic markets and in
specifi c product segments.
Internal Effi ciency
• Continued focus on improvements in productivity
and effi ciency.
• A number of strategic restructuring measures in
the industrial system carried out.
• Continued work with integrating the newly-acquired
operations.
Internal effi ciency
• Further increase the focus on productivity
improvements.
• Increased economies of scale within shared
services.
• Measures to promote competitveness through
lowered product cost.
• A gradual implementation of Volvo Production
System (VPS), including parts of the administration.
• Establish and execute on rolling three-year plans for
the development of employees’ skills and leadership.
Product renewal
• Continued investments in research and development
to create new products with increased customer
value and to meet environmental demands with
better fuel economy.
• Deliver economies of scale within reserach and
development.
• Launch of new products including hybrids.
• Further develop the service range, to help balance
sales of vehicles and equipment, which are more
cyclical in nature.
Aims for 2009
Implemented in 2008
Profi tabl
e
growth
•
Focus on fl exib
ili
ty and quick adjustment of costs
to
low
er
dem
and
.
•
Increased focus
o
services relating to fi nancing
and aftermarket
.
•
Expansion of th
e d
ealer and service networks.
•
Focus on furthe
r c
apitalizing on the presence in
Asia.
•
Regularly eval
uat
e potential acquisitions that could
strengthen the
po
ition in strategic markets and in
specifi c produc
t s
egments.
Pr
o
du
c
t
r
enewal
•
Continued inve
stm
ents in research and development
to create new p
ro
ucts with increased customer
value and to me
et
environmental demands with
better fuel eco
no
y.
Ai
ms
f
or
2
00
9
Profi table growth
• The average annual growth for the
Volvo Group has been 10.6% over
the last fi ve-year period.
• During the same period, the
average operating margin has
been 7.4% per year.
• Joint-venture with Eicher Motors in
India is a foundation for further strengthened
presence in Asia.
• Intensifi ed efforts within the development of
supporting services.
Product Renewal
• Invested about SEK 14 billion in
research and development during the
year, including soft products.
• CO2-neutral trucks showcased on several markets.
• Cooperation regarding the development of the biofuel
DME (dimethylether).
• Commercially viable offering of hybrid city buses.
• Volvo Aero signed contracts regarding taking part in
a number of large engine programs with light-weight
technology.
A global group 2008
11