Volvo 2013 Annual Report Download - page 22

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Continued expansion in rapidly growing markets in Asia, invest-
ment in electromobility and ongoing internal effi ciency pro-
gram are central elements in Volvo Buses’ strategy to increase
profi tability through 2015.
– As we strengthen our presence in key growth markets, we are also
establishing cooperation with cities around the world with respect to the
development of effi cient and environmentally adapted transport systems.
There is an increasing interest in electric buses, which will represent an
increasingly important part of our product portfolio, says Volvo Buses’
President, Håkan Agnevall.
Since 2012, Volvo Buses has been working with well-defi ned focus areas
for growth and internal effi ciency enhancements. The trend is positive for
the internal effi ciency program, but, the total market for buses remained
at low levels in 2013, which put pressure on Volvo Buses’ profi tability.
The fi rst year of Volvo Construction Equipment’s (Volvo CE)
three-year strategy saw progress in a number of areas. Volvo CE
maintained its leadership in the Chinese excavator and wheel
loader market. Its SDLG brand also received a boost, with SDLG
excavators now being built in Brazil and its wheel loaders introduced to
the North American market. The made-for-China L105 wheel loader is the
fi rst of a series of Volvo-branded products that target the needs of cus-
tomers in emerging markets.
Now under the leadership of new President Martin Weissburg, Volvo CE
continues to grow its Customer Solutions business, helped by initiatives
such as more affordable wear parts, broader attachment ranges and greater
customer support agreement penetration.
Internally, Volvo CE continues to focus on excellence in leadership and
effi ciency of operations. New products are being developed faster and to
a higher quality, the latter evidenced by a drop in warranty claims. This
focus on quality and effi ciency is not restricted to Volvo CE’s own organi-
zation but extends to the entire supply chain, with suppliers and dealers.
Volvo Buses’ focus areas
• Number 1 in customer satisfaction.
• Profi table core market clusters.
• Soft product acceleration.
• Asia leverage.
• Profi table product portfolio.
• Manufacturing effi ciency.
• Research and development effi ciency.
• One company culture with high performing people and organization.
Volvo CE’s focus areas
• Profi tably grow SDLG business globally.
• Develop Volvo-branded products for emerging markets.
• Signifi cantly increase Customer Solutions revenues.
• Signifi cantly increase dealer and supply chain capability.
• Increase share and profi tability of road products.
• Increase gross margin per machine.
• Increase product portfolio development (PPD) effi ciency.
• Deploy CAST globally (Common Architecture, Shared Technology).
• Develop, recognize and promote excellent leadership.
Volvo Buses
Business Areas’ strategies
Volvo Construction Equipment
A GLOBAL GROUP 2013 STRATEGY
Profi table growth is the main focus area for Volvo Construction Equipment, Volvo Buses, Volvo Penta
and Volvo Financial Services for the strategic period 2013–2015. Here, the presidents of Volvo Buses,
Volvo CE and Volvo Penta as well as Volvo Financial Services outline their respective strategies.
Volvo
Buses
Volvo
Construction
Equipment
18