Volvo Group is generating long-term competitiveness by maximizing value creation in every part of our value chain through increased efficiency, quality and performance and by acting responsibly towards business partners, employees and the world around us.
The customer is at the center of everything we do and the customer’s voice is present in every part of the value chain. By delivering customer value we deliver value for ourselves and our stakeholders.
Fulfilling our customers’ needs and improving their profitability and environmental performance forms the basis of our product and service development.
Long-term cooperation with suppliers drives efficiency, quality and responsible behavior throughout the value chain.
Our well-invested global industrial and logistics setup efficiently uses continuous improvement to meet internal targets and deliver on customer expectations.
Our global network of dealers and service centers staffed by competent and service oriented personnel are key factors for customer satisfaction and success.
Working with lean methodologies enable us to reduce materials and energy use, incorporate more recycled materials, recover heat and recycle waste.
Almost 2.1 million trucks and 100,000 buses, which the Group manufactured in the past 10 years, drive on roads worldwide. Our construction machines operate at construction sites all around the world, us having delivered about 600,000 machines in the last 10 years. In the US over 70% of all freight tonnage is moved by trucks. In the EU roughly 50%.
Our products and services make societies function. Our customers operate bus lines so that people can get to work, they transport food and industrial goods and they build infrastructure such as roads and hospitals. Road freight transport directly creates 6.5 million jobs in the EU and nearly 9 million jobs in the US. We also contribute to the local economy by being a major employer in many communities, providing both direct and indirect employment. In 2019 the Group paid SEK 10,560 M (9,681) in social costs, SEK 5,031 M (4,335) in pension costs and SEK 9,401 M (6,838) in income taxes. We also pay customs duties as well as property and energy taxes.
The Group’s almost 100,000 employees are our most important asset. Employee commitment and a performance culture based on customer success, trust and passion are critical for the Group to fulfill its mission of driving prosperity through transport and infrastructure solutions. The Group strives to offer competitive employment terms and benefits as well as a stimulating, safe and healthy work environment. In 2019 we paid SEK 48,600 M (45,983) in salaries and remuneration.
A solid supplier base and professional partnerships are essential for customer success. The Volvo Group places high demands in terms of a responsible and sustainable behavior on its suppliers globally. The Volvo Group provides both income and employment for a large number of companies and in many societies around the world. Purchased goods and services is the Volvo Group’s single largest expense and in 2019 we bought goods and services for SEK 299,595 M (270,269).
A long-term competitive business requires access to capital to be able to invest. The Volvo Group strives to ensure that the capital is used in the best possible way and to assure debt providers with the financial strength to secure proceeds and repayment. In 2019 the Volvo Group paid its creditors SEK 1,104 M (1,307) in interest.
The Volvo Group strives to generate increased value for its shareholders. This is achieved through a positive share price development and payout of dividends. From 2014–2019 the price for the Volvo B share increased by 86%. Shareholders normally receive a certain portion of the retained earnings in the form of a dividend, after consideration has been given to the Group’s need for capital for continued development according to its strategies.
A significant portion of generated capital is normally transferred back into the operation. The capital is used for investments that will strengthen competitiveness and create long-term value for the Group and its stakeholders.