In a move intended to save money and simplify its structure, Volvo AB said today that it would split its three truck brands into separate divisions. The company said its three truck companies – Volvo Trucks, Renault V.I. and Mack Trucks – will become separate business areas, though they will report financially as Volvo Global Trucks, which becomes an external reporting group for the brands.
"The organization (Volvo Global Trucks) served its purpose, but became redundant," Volvo spokesman Mårten Wikfross told Fleet Owner. "Essentially we are cutting away the middle layer."
As a result of the move, it is not expected that U.S. customers would notice any changes in business patterns.
Wikfross said the three truck companies will have independent marketing groups. However, a new division, Volvo 3P, will be responsible for product planning, purchasing and product development for the three truck companies.
Odile Desforges, president of Volvo 3P, will report to Lars-Göran Moberg, technical director of the Volvo Group Executive Committee.
Tryggve Sthen, who was president of Volvo Global Trucks, will continue to serve on the Volvo Group Executive Committee, Wikfross said.
Jorma Halonen, President of Volvo Trucks and Chairman of Volvo Trucks North America, and Philippe Mellier, President of Renault V.I., will report directly to Leif Johansson and will be members of Volvo Group Executive Committee. Michel Gigou, President of Volvo Trucks North America, who is responsible for the integration of truck operations in North America, will become chairman of Mack Trucks and a member of Volvo Group Executive Committee, reporting to Leif Johansson. Paul Vikner, President of Mack Trucks, will report to Michel Gigou.