Volvo 2010 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2010 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

impact of SEK 538 M on Volvo Aero’s operating
income in 2010. The sale of Volvo Aero Services
is due to Volvo Aero’s strategy of focusing on its
core operations of developing and manufacturing
components for aircraft engines, combined with
the goal of reducing the company’s tied-up capital.
The third quarter
UD Trucks and Nissan Motor end collabora-
tion on contract manufacturing of light-duty
trucks
The collaboration between Volvo Group’s Japa-
nese subsidiary UD Trucks and Nissan Motor on
the contract manufacturing of light-duty trucks
will expire and the production will end in January
2011. The decision enables UD Trucks to focus
more on medium and heavy-duty trucks. UD
Trucks will continue to have its own manufactur-
ing operation for light-duty trucks for the export
market. During 2009, UD Trucks produced 6,150
light-duty trucks within the collaboration frame-
work and up to August 2010, 4,800 vehicles had
been produced and sold to Nissan Motor. The
end of contract manufacturing for Nissan Motor
will not result in any restructuring costs or have
any significant impact on the Volvo Group’s earn-
ings or financial position.
The fourth quarter
Volvo Group President and CEO Leif
Johansson to resign in the summer of 2011
After almost 14 years as President and CEO of
Volvo, Leif Johansson in December informed the
Board of AB Volvo of his intention to resign in
conjunction with his 60th birthday in the summer
of 2011. At the same time Leif Johansson will
also leave the Board of AB Volvo.
The Volvo Group enters partnership with
WWF to reduce CO2-emissions
The Volvo Group will be the world’s first vehicle
manufacturer to join the World Wide Fund for
Nature’s (WWF) Climate Savers Program. As a
WWF partner, the Volvo Group’s truck companies
undertake to reduce the CO2-emissions from
vehicles manufactured between 2009 and 2014
by 13 million tons. Independent technical experts
will oversee the results.
Events after balance-sheet date
Volvo part of investigation by European
Commission
In January 2011, Volvo Group and a number of
other companies in the truck industry have
become part of an investigation by the European
Commission regarding a possible violation of EU
antitrust rules.
Proposal for voluntary conversion of
series A shares
In a letter to AB Volvo’s Board of Directors ahead
of the Annual General Meeting (AGM) on April 6
this year, AB Volvo’s two largest shareholders –
Renault S.A. and Industrivärden – have proposed
an addendum to AB Volvo’s articles of associ-
ation that would permit voluntary conversion of
series A to series B shares.
Corporate Governance Report Volvo has issued
a corporate governance report which is separate
from the annual report. The corporate governance
report is included in this document, after the
annual report as such, on the pages 138–147.
25