Economic development - Profitable growth : VOLVO GROUP GLOBAL
image text: Profitable growth

Sustainable business creates value

Long-term economic development is both a result of and a prerequisite for our enterprise to achieve its environmental and social goals.

Our overall business strategy is based on our customers' requirements. By creating customer value, we also create long-term value for our shareholders and for the societies in which the Group is active.

The strategy is focused on three areas:

1. Profitable growth
Our aim is to continue to grow while focusing on profitability. Growth is to occur both organically and through acquisitions. The aim is to grow by 10% a year over a complete business cycle. During 2008, net sales increased by 6 %. During 2004- 2008 the avarage growth was 10.6 %.

Profitable growth is a necessary condition of the Volvo Group's continuing to strengthen its competitiveness and develop as a cooperation partner to customers with high demands.

In recent years, the Volvo Group has advanced its position in Asia - a prioritized region with a high rate of growth. This is in line with the strategy of establishing a strong third market in addition to Europe and North America.

2. Product renewal
Efforts are constantly under way within the Group to improve the performance of products - this strengthens current competitiveness. At the same time, research looking further into the future is conducted to achieve new technical breakthroughs that will contribute to reduced environmental impact and meet future requirements. Product development represents an assurance of value creation in the future.
In 2008 we invested approximately SEK 14 billion.

3. Internal efficiency
The Volvo Group has a clear focus on efficiency, particularly in relation to profitability and customer satisfaction.

We strive to optimize cost-efficiency and productivity in all sectors of our operations. This promotes higher profitability and places the Group in a better position to handle economic fluctuations.

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