Volvo 2013 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2013 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 198

  • 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
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198

BOARD OF DIRECTORS’ REPORT 2013 GROUP PERFORMANCE SIGNIFICANT EVENTS
SEK 5 billion, whereof approximately SEK 0.5
billion is expected to have no impact on cash fl ow.
The majority of the restructuring charges are ex -
pected to impact operating income during 2014.
Savings are expected to amount to approxi-
mate ly SEK 4 billion annually, and will generate
results gradually in 2014, with full effect achieved
by the end of 2015.
Volvo Group to optimize truck
manufacturing in Europe
On October 16 the Volvo Group announced a di -
rectional decision to implement changes in the
European industrial structure for truck manufac-
turing. The aim is to enhance the effi ciency and
thus strengthen competitiveness. The intention
is to, step-wise over the next two years, relocate
cab trim operations from Umeå to Gothenburg,
to concentrate the assembly of heavy duty trucks
in Gothenburg to one line, and to concentrate
the assembly of medium duty trucks to Blain-
ville. The directional decision is expected to
result in staff cutbacks and operational changes.
Staff and support function rationalization
As part of the Group-wide effi ciency program
the Volvo Group has made a directional deci-
sion to rationalize its staff and support func-
tions worldwide to enhance effi ciency and
reduce costs. Approximately 2,000 white-collar
employees and consultants are expected to be
affected by the rationalization, which is intended
to be implemented starting in the beginning of
2014. The action is subject to union negotiation.
Volvo Construction Equipment to
acquire hauler business from Terex
In a move that will improve the company’s pene-
tration in the core earthmoving segment and
extend its presence in light mining, Volvo Con-
struction Equipment in December agreed to ac -
quire the off-highway hauler business of the
Terex Corporation for a purchase consideration
of approx. USD 160 M (approx. SEK 1 billion) on
a cash and debt free basis. The acquisition in-
cludes the hauler manufacturer Terex Equipment
Ltd and related assets and intellectual property.
The deal, which is subject to regulatory approval,
includes the main production facility in Mother-
well, Scotland and two product ranges that
offer both rigid and articulated haulers. It also
includes the distribution of haulers in the U.S.
as well as a 25.2% holding in Inner Mongolia
North Hauler Joint Stock Co (NHL), which man-
ufactures and sells rigid haulers under the Terex
brand in China. NHL is listed on the Shanghai
Stock Exchange. The transaction is expected to
be fi nalized during the second quarter of 2014.
THE THIRD QUARTER
01/07/2013 Volvo Group to increase warranty reserves 10/07/2013 Invitation to press and analyst conference in Stockholm 24/07/2013 Volvo Group – the second quarter 2013
31/07/2013 New number of votes in AB Volvo 20/08/2013 Termination of local assembly contract in Turkey – new range of Renault Trucks to be manufactured in France
26/08/2013 Volvo Group takes an important strategic step with the launch of Quester 26/08/2013 Semi-Annual Report of Volvo Treasury AB (publ) 27/08/2013 More effi cient
goods transport reduces emissions in cities 30/08/2013 New number of votes in AB Volvo 04/09/2013 Volvo Trucks Reveals Next Generation 16/09/2013 The Volvo Group
ranked as one of the world’s most sustainable companies 18/09/2013 Truck deliveries in August 2013 24/09/2013 The Volvo Group announces comprehensive effi ciency program
linked to the strategy 30/09/2013 New number of votes in AB Volvo
70