The Board’s work
The Board’s work in 2025
Every year, the Board adopts work procedures for the Boardʼs work.
The work procedures outline how the Boardʼs duties should be distributed, including the specific role and duties of the Chairman, instructions for the division of duties between the Board and the President and CEO and for the reporting of financial information, sustainability matters and other items to the Board. The Board has also adopted specific instructions for the Boardʼs respective committees, which are linked to the work procedures.
The Boardʼs work is mainly performed within the framework of formal Board meetings and through meetings in the committees of the Board. In addition, regular contact is maintained between the Chairman of the Board and the President and CEO in order to discuss ongoing business and to ensure that the Boardʼs decisions are executed.
In 2025, there were ten ordinary Board meetings, one extra meeting and one statutory Board meeting. The attendance of the Board members at the Board meetings during 2025 is presented here. The companyʼs auditor attended one Board meeting during the year.
During 2025, the Board has focused on the strategy of the Group and the respective Business Areas and on execution on set directions, in light of weaker demand in several key regions, geopolitical uncertainties and the slower than expected shift toward zeroemission vehicles. The Board has also monitored earnings resilience in operations closely, as well as market developments, including the increased regionalization of value chains and its business and organizational implications.
The North American region has been high on the agenda, with a focus on securing long-term competitiveness. The Board has considered challenging market conditions but also opportunities related to among other things new products launches, including the all-new VNL truck launched by Volvo Trucks during the second half of 2024 and the all-new Pioneer truck launched by Mack Trucks in April 2025. In addition, the Board has devoted time for discussions on business opportunities and risks associated with disruptive technologies, with particular focus on autonomous services, electrification, digitalization and artificial intelligence. Furthermore, the Board has continued to follow the strategic partnerships and joint ventures established in recent years, as well as acquisition and divestment opportunities. Transactions covered include the agreement to acquire Swecon and the divestment of the Groupʼs ownership share of 70 percent in the China-based company SDLG, both within Construction Equipment.
The Boardʼs ambition is to stay close to the business and the Board receives continuous updates on the development of the Groupʼs performance. During 2025, in addition to earnings resilience with the North America focus and above-mentioned strategic topics, the Board also gave significant attention to several other key areas and issues:
- Key investments: Review and approval of investments in products, production and Digital & IT, including review of the long-term investment plans and affordability going forward.
- Sustainability: Review of the Volvo Groupʼs sustainability work and objectives, balancing the Groupʼs ambitions with customer readiness.
- People Growth: Evaluation of talent and succession planning within the organization, notably the changes to the Executive Board during 2025.
- Compliance & whistleblower programs: Oversight of product regulatory compliance and the work with Health & Safety.
- Macro environment: Review of competitive landscape and monitoring of macroeconomic and geopolitical developments.
The Board usually makes regular visits to the companyʼs operations throughout the world to meet with local management, customers and suppliers and learn more about the specific market conditions in the visited region. In 2025 the Board visited the United States.
In 2025, the Board resolved on an overall financial plan and investment framework for the Groupʼs operations. In addition, the Board regularly monitors the Groupʼs earnings and financial position and maintains continuous focus on risk related issues such as overall risk management and ongoing legal disputes and investigations. The Board proposed a distribution of an ordinary dividend of SEK 8.00 per share and an extraordinary dividend of SEK 10.50 per share, which was resolved by the Annual General Meeting 2025. Furthermore, the Board regularly reviews the managementʼs short and long-term incentive programs to ensure that they fulfill their purpose and drive the right behavior in the current business environment.