Volvo 2015 Annual Report Download - page 171

Download and view the complete annual report

Please find page 171 of the 2015 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 204

  • 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
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204

SIGNIFICANT EVENTS 2015
In January, the Volvo Group completed the acquisition of 45% of the Chi-
nese automotive manufacturer, Dongfeng Commercial Vehicles Co., Ltd.
The transaction significantly strengthened the Volvo Group’s position in
medium-duty trucks leading to the Group becoming one of the world’s
largest manufacturers of both medium-duty and heavy-duty trucks.
In March and June, the Volvo Group divested its shares in the listed Indian
automotive manufacturer Eicher Motors Limited (EML). The divestment had
no impact on the ownership or control of the joint venture VE Commercial
Vehicles in which the Volvo Group remains as owner together with EML.
The Board of Directors of AB Volvo decided in April to appoint Martin
Lundstedt as the new President and Chief Executive Officer of the Volvo
Group. Martin Lundstedt assumed his position in October.
In October, the Volvo Group announced its intention to divest its external
IT business and to outsource IT infrastructure operations to HCL Tech-
nologies. The transaction is expected to be implemented on March 31,
2016 and will provide both cost savings and a capital gain.
A reorganization of the truck sales operation will be implemented on
March 1, 2016, entailing a brand-based organization with clearer com-
mercial accountability for the Volvo Group’s various truck brands.
As a result of the new trucks sales organization and a decision to include
representatives from the Volvo Group’s largest Business Areas in the
Executive Board, the Volvo Group Executive Board will consist of 13 exec-
utive positions including the CEO as from March 1, 2016. The recruitment
of the Executive Vice President Group Trucks Purchasing is ongoing.
169
CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT 2015