Volvo 2013 Annual Report Download - page 20
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Truck operations’ strategies
After 15 years of active acquisition strategy and streamlining to commercial vehicles, the Volvo Group has entered a new
phase, with a focus on driving organic growth and improving profi tability. In the strategy for 2013 – 2015, we have identifi ed
fi ve focus areas that have particularly high impact on the truck operation, for which there are 20 strategic objectives.
Each objective is clearly defi ned and measurable and is connected to both fi nancial and operational key performance
indicators (KPI’s). In addition, there is a clearly defi ned responsible party for each individual strategic objective.
We operate in a capital-intensive industry. Signifi cant
investments are necessary to simply comply with new
regulations. Furthermore, a strong fi nancial position
affords us the opportunity to act, and to fund innova-
tion and development, and our own expansion. To
achieve this, we must excel in turning “volumes into
profi t” and capture the potential for effi ciency that is
associated with being a truly global player.
1.1 Increase vehicle gross profi t margin
per region by 3 percentage points
1.2 Reduce actual standard cost of sales
on total cost for current offer by 10%
1.3 Decrease wholesale selling expenses
to 5% of sales
1.4 Increase own dealer soft offer absorption
rate by 10 percentage points
1.5 Reduce R&D cost (spending pace)
to SEK 11.5 bilion
1.6 IT cost on 2% of Volvo Group total cost
by 2015
Success is based on being the best at solving our cus-
tomers’ problems and strengthening their operational
performance. This is a key factor in building customer
loyalty and becoming our customers’ preferred busi-
ness partner.
2.1 We will achieve 99% product availability
contributing to “strengthen customer
business partnership”
2.2 Drive retail excellence by implementation
of an integrated customer interface tool
2.3 Each brand to rank number 1 on decided
brand attributes in competitive set
1 2
A GLOBAL GROUP 2013 STRATEGY
KEY FOCUS AREA 1:
Secure number 1 or 2
in profi tability
KEY FOCUS AREA 2:
Strengthen customer
business partnership
16