Volvo 2012 Annual Report Download - page 22

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Volvo Buses' focus areas
• Number 1 in customer satisfaction.
• Profitable core market clusters.
• Soft product acceleration.
• Asia leverage.
• Profitable product portfolio.
• Manufacturing efficiency.
• Research and development efficiency.
• One company culture with high performing
people and organization.
The challenge for Volvo Buses is to obtain a sharp improve-
ment in profitability by 2015. One way of achieving this is to
expand in Asia.
− Growth in Asia is really significant and we already enjoy
a strong position there. We are now going to continue along the same lines,
says the acting president of Volvo Buses, Håkan Karlsson.
Volvo Buses has identified eight areas on which it is especially important
to focus during the next three-year period. They will all help to improve prof-
itability and make Volvo Buses one of the most profitable bus companies.
− This is our absolutely top priority. We are talking about an aggressive,
powerful increase and it’s essential that
all the employees are both aware of and
committed to it, says Håkan Karlsson.
Volvo Buses
Read more about Volvo Buses'
new telematics system, which
is currently being used in
more than 20 countries,
on page 60.
Volvo CE's focus areas
• Profitably grow SDLG business globally.
• Develop Volvo branded products for emerging markets.
• Significantly increase Customer Solutions revenues.
• Significantly increase dealer and supply chain capability.
• Increase share and profitability of Road products.
• Increase gross margin per machine.
• Increase product portfolio development (PPD) efficiency.
• Deploy CAST globally (Common Architecture,
Shared Technology).
• Develop, recognize and promote excellent leadership.
Business areas
strategies
Growing and becoming more profitable are the main focus areas for Volvo CE, Volvo Buses, Volvo Penta and Volvo Financial
Services for the next three-year period, 2013–2015. Developing on more markets is another common denominator. Here, the
presidents of Volvo Buses, Volvo CE and Volvo Penta as well as Volvo Financial Services outline their respective strategies.
For Volvo CE, the next three years will focus on growth and
profitability and, according to company president, Pat Olney,
the potential for success is there for all to see.
− The important thing now is to make the whole organiza-
tion understand that we need to change the way we think. We are
transforming Volvo CE to meet the opportunity of the future, he says.
Growth, efficiency and leadership are Volvo CE’s three cornerstones in
the new strategy for 2013–2015. Using these three guiding principles as
the starting point, Volvo CE has selected nine key focus areas.
They include allowing Volvo CE’s two brands, Volvo and SDLG (Shandong
Lingong) to develop and expand on
more markets than today – SDLG out-
side China and Volvo in India, China
and Brazil, for example.
Volvo CE
Read more about Volvo
CE's wheel loader L105,
developed specifically for
the Chinese market, on
page 48.
Drive organic
revenue growth
Improve
profitability
A GLOBAL GROUP 2012 STRATEGY STRATEGIC APPROACH
18