Volvo 2008 Annual Report Download - page 67

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In order to adjust to an expected downturn
with lower volumes, Volvo Aero in 2008 made
reductions of staff in Kongsberg, Norway, and
Boca Raton, Florida, US, and in January, the
company initiated negotiations regarding
redundancy of 250 blue-collar employees in
Trollhättan, Sweden and more than 100 white-
collar positions through planned retirement
and a reduced number of consultants. All in all,
the reduction comprises about 420 positions
at Volvo Aero.
New president
On November 1, Staffan Zackrisson assumed
the position as President of Volvo Aero. Staffan
Zackrisson has worked for Volvo Aero for a
number of years and in recent years he has
been a member of the business area’s man-
agement team.
Financial Services
– a vital and trusted partner
Volvo Financial Services supports the Volvo
Group’s product range with vital fi nancing
solutions and related offerings to help cus-
tomers acquire the products that they need.
The expanded range of services and customer
fi nancing operations intensify cooperation,
build retention and add value to Volvo Group’s
customers.
2008 was a very challenging year with
the fi nancial markets overall experiencing
extremely restricted liquidity in the last quarter
of 2008. Volvo Financial Services (VFS) con-
tinued to provide vital fi nancial services to
Volvo Group customers and dealers through-
out the world, focusing on strong credit disci-
pline and a close working relationship with
dealers, customers and the other business
areas in the Volvo Group.
During 2008, VFS continued its strategy of
geographical expansion as it commenced
retail fi nancing in Chile and Hungary. The
organic growth continued with a new fi nancing
volume of SEK 44.5 billion (41.4) and a pene-
tration level of 25% (24) for the full year.
Volvo Financial Services reached a portfolio
milestone during 2008 of more than SEK 100
billion in managed assets. VFS has been suc-
cessful in a number of markets, which is
refl ected in good volumes and favorable pene-
tration, while at the same time maintaining
strict underwriting policies. In recent years
VFS has focused very much on improving the
credit mix of the portfolio, the diversity of the
products fi nanced and the geographical distri-
bution of assets under management.
Developed integrated solutions with the •
other business areas.
Commenced customer fi nancing activ-•
ities in Chile, Hungary, Slovakia and
Australia.
Further integration of Road Machinery. •
Enhanced the brands through marketing •
campaigns.
Maintained stability and control in •
a diffi cult economic environment.
Improved recruitment and retention •
activities and implemented key skills
development programs.
Ensure sustained profi tability in the •
global recession.
Secure effi cient funding and execute •
on capital management strategies.
Continue optimizing growth by more •
tailored customer solutions.
Secure key competencies and global •
mobility.
Expand and integrate commercial •
offering.
Controlled growth in new, organic •
and acquisition markets.
Extend brand awareness. •
Business cycle vigilance.•
Employee recruitment, development •
and retention.
Outcome 2008 Ambitions 2009Ambitions 2008
FINANCIAL SERVICES
Volvo Financial Services offers fi nancing to both
dealers and end-customers and contributes to
strengthen the relationship with customers.
Volvo Trucks 46%
Mack Trucks 7%
Renault Trucks 16%
Buses 3%
Volvo CE 23%
Other 5%
29
Volvo
Trucks
Renault
Trucks
Mack
Trucks
Buses Volvo
CE
29 16 18 18 16 13 14 34 36
08
07
Credit portfolio by business area, %
Penetration by business area1, %
1 Share of business
fi nanced by
Financial Services
in markets where
fi nancial ser vices
are offered.
Business areas 2008
63