Volvo 2015 Annual Report Download - page 5

A GLOBAL GROUP CEO COMMENT
Mr Lundstedt: What is your view on sustainability?
Martin Lundstedt (ML): The 55 electric bus route in Gothenburg
is a great example of what can be achieved when we work
together with other actors in society to develop transport solu-
tions that are truly sustainable. There is no doubt in my mind that
this is the way forward. To be competitive we must deliver sustain-
able transport solutions to our customers and act responsibly in
our daily work. With our global spread and local presence, we
have a unique position to lead the transition towards a more sus-
tainable transport and infrastructure industry. We take the lead by
integrating sustainability as a natural part of our product and busi-
ness development, as we did in the ElectriCity project. But there
is more to it, we create value in local communities by linking our
societal engagement with our business objectives. As an example
we conduct vocational training programs for service technicians
in developing countries. This creates employment opportunities
for young people while securing skills for our long-term business
development.
How would you comment the financial result for 2015?
ML: In short, we increased our profitability and had a positive
cash flow development. Our position today is to a large extent the
result of the great product ranges we launched a few years ago
and our different efficiency programs. We conducted these pro-
grams to reduce our structural costs, and we have. A lot of people
have put in hard work to make this happen and it is very rewarding
to see the results coming through. I would like to thank all emply-
ees for their efforts during 2015. We will always look for new ways
to become a more efficient Group, but we are now gradually mov-
ing away from major restructuring programs to more continuous
improvement work.
You took office in October 2015. What were your first
impressions of the Group?
ML: Well, first of all my first impression of the Volvo Group was
formed much earlier. Having worked at a competing company for
many years I had a rather clear view of the company and I have
been impressed in many cases. As an example I have seen Volvo
Trucks’ total solution approach being applied in emerging markets
with not only perfectly adapted hardware but also on-site support.
And if you go to Bangalore, India, you can either buy a bus ticket
or a Volvo ticket. That says something about the strength of the
brand position Volvo has built up in that market. I have listened to
people in the US talk about the Mack brand and what it repre-
sents to them. So I guess that my first impression of the Group
was that it was a great company with tremendous assets in terms
of both its brands and its people. And after joining the Group I
have found an organization with deep knowledge about our prod-
ucts and customers.
A lot of people who have met you since you joined the
Group have commented that whatever you discuss, you
always seem to talk about the customer. Would you agree?
ML: Absolutely. Customer focus is something that is very close to
my own heart and something that I will reinforce and build on. That
goes throughout the whole value chain. I am not only talking about
the frontline, which is of course extremely important, but also
through production, purchasing, research and development, finan-
cial services etc. so that we put together a complete package.
And looking ahead?
ML: In 2015 the foundation was laid. We now enter the next phase
– when we organize the truck operations based on our brands. It
will increase our focus on customers and contribute to driving our
business with higher speed and improved efficiency. We will have
a simpler organization in which decisions are made closer to the
customer and a mindset to always look for new ways to improve. All
of our business areas have potential for further improvement,
which means that we have an exciting time ahead of us.
Martin Lundstedt
President and CEO
Jan Gurander
Deputy CEO and CFO,
Acting President and CEO April 22–October 21, 2015.
Jan Gurander Martin Lundstedt
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