Strategic priorities

By understanding our customers’ priorities and challenges, we are able to provide products and services that grow customers’ revenues and decrease customers’ costs. In other words – creating value for our customers by supporting their profitability. This is the foundation of our strategy.

Creating value by supporting customer profitability
No. Priority Example
1 Reinforce Volvo as a global premium heavy­duty truck brand and regain position and market shares of Renault Trucks, Mack and UD as regional high­end truck brands. The new Mack Anthem and the updated Mack Pinnacle and Mack Granite are together with the new Volvo VNL and Volvo VNR the biggest upgrade of the Group’s North American product line­up in 20 years.
2 Capture growth in Asia through having the joint ventures DFCV in China and VECV in India as well as the Group’s value truck range in a separate value chain – and leveraging it in other emerging markets. Group Trucks Asia & JVs aims for profitable growth through strong brand images, competitive offers and a lean cost structure.
3 Create the most desirable heavy­duty product and service portfolio tailored to selected markets and segments.

Customers have different requirements and cost structures and therefore want different propositions depending on their location and the type of transport work they carry out. Creating customer value by improving our customers’ profitability therefore means offering trucks adapted for each application.
In 2017 the Volvo Group introduced a large number of new products and services aimed at creating
further value for our customers by strengthening their competitiveness in the market.
4 Secure robust profitability through leading R&D, quality, purchasing and manufacturing operations using Volvo Production System, which is the Group concept for driving continuous improvement in product development, production, sales and administration. By working with a system which is applied throughout the Volvo Group, it is possible to secure a sustainable way of working with continuous improvement. It can be applied to all functions and secures a Group­wide approach which facilitates cooperation and knowledge sharing.
5 Have brand specific sales operations with a focus on retail excellence and a growing service business where decisions are made more quickly and closer to the customer. Each brand has an expanded mandate to develop its own business with an explicit responsibility for profitability. As an example, in Australia, the increased focus on services has boosted our truck brands’ market shares, despite tough competition.
6 Leverage Group assets in the non­truck Business Areas, creating additional profits, synergies and technology leadership. Many of the Volvo Group’s products are based on a common architecture and shared technology (CAST), a modularized concept with standardized interfaces. At the center of this strategy are the Group’s engine platforms, which together with electronics, transmissions, and technology in connectivity, electromobility and automation are Group resources for the Business Areas to draw from.  
7 Revitalize the Volvo Group culture with a focus on Customer Success, Trust, Passion, Change and Performance. We believe that  a strong culture leads to engaged people. This in turn drives business performance. Learn more about our values.