Volvo 2008 Annual Report Download - page 9

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vinced, however, that the market will recover,
since transports and infrastructure are the
backbone of modern society. In the long-term
perspective, economic growth is driven by
increased trade and the need for infrastruc-
ture. This is particularly true in regions such as
Eastern Europe and Asia. We have advanced
our positions in these markets during recent
years through investments in our dealer and
service networks, our acquisition of the Japa-
nese truck manufacturer Nissan Diesel, the
acquistion of the Chinese wheel-loader manu-
facturer Lingong and the establishment of a
joint-venture company for trucks and buses in
cooperation with Eicher Motors of India.
As one of the world’s largest manufacturers
of commercial vehicles, we have a responsibil-
ity to reduce the environmental impact of our
production and the utilization of our products.
There is no confl ict between the development
of products with lower environmental impact
and the creation of profi table growth. Engines
that consume less fuel reduce our customers’
costs and strengthen their competitiveness.
We have a frontline position in the develop-
ment of engines that meet future emission
requirements and Volvo’s hybrid technology is
one of the most promising and competitive
technologies for commercial vehicles. The
Group’s solution enables the diesel engine
and electric motor to work in parallel or indi-
vidually, depending on the power range and
application, which signifi cantly increases fuel
effi ciency compared with serial hybrid solutions.
Strong positions in industries with
potential for the future
In order to maintain solid fi nancial stability and
support continued investments in the develop-
ment of products for the future, the Board
of Directors proposes that the ordinary divi-
dend be reduced by 64% to SEK 2.00 per
share. Since the Volvo Group’s return on equity
exceeded 12% for the full-year 2008, SEK
150 M has been reserved for the profi t-sharing
program for employees, whose efforts during a
diffi cult year were highly commendable.
There is no doubt that
a diffi cult period lies
ahead, but when the
conversion to a new,
lower level of costs is
fully implemented, we
will have built a good
foundation from which to
build upon when market
recovers. The Volvo Group is one of the world’s
leading companies in industrial segments with
large future opportunities. We have strong
brands, a product range at the absolute fore-
front and strong positions in our markets.
As a result of substantial investments in
recent years in innovations and product devel-
opment, supported by the required measures
we are now introducing, we have major oppor-
tunities to strengthen our market positions
when the economy rebounds. But continued
hard work will be required to achieve our
goals.
Leif Johansson
President and CEO
The Volvo Group is one of the
world’s leading companies in
industrial segments with large
future opportunities. We have strong brands, a
product range at the absolute forefront and
strong positions in our markets.
A global group 2008
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