Volvo 2014 Annual Report Download - page 26

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Volvo Penta’s strategy is aimed at growth by satisfying demanding
customers with premium products and services, says Björn
Ingemanson, head of Volvo Penta.
The Marine Leisure segment will remain highly important to
Volvo Penta revenues and profi tability. Going forward, Volvo Penta
will continue to strengthen its position in the Marine Leisure
market by further developing the “Easy Boating” concept. The
award-winning “Glass Cockpit”, as well as the recently announced
“Forward Drive” concept, are prominent examples of how this
strategy is executed. Volvo Penta is also an established player
supplying engines for power generator sets.
However, the businesses with the most potential for growth are
the Industrial Versatile segment and the Marine Commercial seg-
ment. Volvo Penta’s product offering within the Industrial Versatile
segment, i.e. container handling, mining equipment and other off-
road machinery, is very competitive. In the Marine Commercial
segment, Volvo Penta will benefi t from leveraging on its “Inboard
Performance System” (“IPS”) which will be made available for
additional applications.
Volvo Penta
Volvo Penta’s focus areas
• Grow the Industrial Versatile Engine (VE) business.
• Grow the Marine Commercial business.
• Leverage on growth in emerging markets.
• Build a world-class supply system.
• Build a customer- and quality-focused company culture.
A GLOBAL GROUP 2014 STRATEGY STRATEGY FOR THE PERIOD OF 2013–2015
Two years into the strategic period 2013–2015, Business Area
Buses continues on the identifi ed areas for growth and internal
effi ciency, according to head of Buses, Håkan Agnevall.
The global bus market remains on a low level, which continues
to put pressure on Volvo Buses’ profi tability. Despite the market
development Volvo Buses keeps a strong position in key markets.
An increasing number of core market clusters start to show posi-
tive results. A positive development in the sales of parts and
services can be seen in the Americas.
Interest in energy-effi cient vehicles that can operate partly or
completely on electricity is growing rapidly. Volvo Buses is collab-
orating with a number of cities worldwide to create business mod-
els and system solutions for sustainable city traffi c of the future,
based on electromobility. During 2014 additional agreements on
cooperation have been signed with the cities of Shanghai, Curitiba
and Edinburgh.
A number of internal cost-effi ciency programs related to prod-
uct cost, including sourcing and manufacturing effi ciency, are in
place and show good progress. Addressing customers’ needs,
improving product quality and delivering on the cost-effi ciency
program are high on Buses’ agenda. The internal employee
engagement index increased substantially during 2014.
Volvo Buses
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.
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