Volvo Group introduces new organization for its dealer networks in Europe, the Middle East and Africa

The Volvo Group intends to introduce a new organization for its truck dealer networks in Europe, the Middle East and Africa (EMEA).

The reorganization aims to capitalize more effectively on opportunities for the Group’s brands and products in line with the new strategy that was recently presented for the truck operation.

“By making smarter use of existing networks, we can capitalize more effectively on our various brands and products in the truck operation while improving our service to customers,” says Peter Karlsten, Executive Vice President of Group Trucks Sales & Marketing EMEA.

The new organization entails that today’s markets in the EMEA region will be divided into four new sales areas, and each area will be responsible for sales of all of the Group’s truck brands. At present, dealer networks for the two brands sold in Europe – Volvo and Renault – are separate, but an overview is now taking place to determine whether these can be leveraged more effectively in order to increase the geographic coverage and the product and service offering. Separate networks will be maintained in markets where it is considered they can succeed over time. In other markets, networks will be integrated and dealers will be permitted to sell and offer service for more than one brand.

Along with an overview of the organization for dealer networks, the existing structure for the sales and marketing organization will also be reviewed with the purpose of enhancing efficiency. However, the implications for the reorganization remain to be determined.  

The new organization for dealer networks and head office structures in the EMEA is a stage in the implementation of the new strategy for the Volvo Group’s truck operation. The strategy aims to capitalize more effectively on the Group’s potential in the form of brands, products, geographic coverage, industrial structure and economies of scale. The strategy is a key component of efforts to gradually improve the operating margin of three percentage points, as previously announced.

October 10, 2012

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