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Volvo

Volvo Group has a leading position in transport and infrastructure solutions with trucks, construction equipment, buses, marine and industrial engines, financing and service that increases customers’ operational time and productivity.

Operations are global, with sales in 190 countries. The vision is to be the world’s most desired and successful provider of sustainable transport and infrastructure solutions. The business model builds upon the company’s competitive products, strong brands, leading service and financing solutions, and successful development partnerships aimed at providing reliable, safe, effective and sustainable solutions that create value for customers.

The company conducts concerted innovation work in the areas of electrification, automation and connectivity, and is currently driving development of sustainable transport and infrastructure solutions of the future. To stay at the forefront and develop new, leading solutions, Volvo partners with other companies, such as with Samsung SDI in batteries, Daimler Trucks in fuel cells, a couple of industry peers in charging networks, and NVIDIA and Aurora in autonomous vehicles.

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Active ownership in practice – strategic development in recent years

In its capacity as a long-term active owner, Industrivärden engages itself in the portfolio companies’ strategic development. Against the backdrop of the Company’s business model, this concerns mainly matters pertaining to the portfolio companies’ boards and management teams, financial development and matters such as strategy, market position, sustainability, efficiency and capital structure.

Following are examples of important corporate governance matters and major strategic activities for long-term value creation that the respective portfolio companies have taken in recent years, where Industrivärden has played an active role through its work on the board and nominating committee. 

Value-creating measures

  • Developed strategy and new financial targets along with organizational changes and business focus, decentralization and faster decision-making processes
  • Clear focus on transformation toward future transport needs, e.g., electromobility, automation and connectivity with focus on efficiency and sustainability
  • Strategic partnerships to accelerate key development steps, e.g., with Daimler Truck in fuel cells (cellcentric), Daimler Truck and the Traton Group in charging networks, Samsung SDI in batteries, Isuzu Motors in commercial vehicles, and NVIDIA in autonomous vehicles
  • Focus on organic growth opportunities, such as through local manufacturing and sales of Volvo’s heavy-duty trucks in China following the strategic acquisition of a Chinese truck maker (subject to customary closing conditions), and through development of the global service business
  • Numerous new directors elected to board 

Result

  • Higher profitability and stronger financial position
  • Significantly strengthened ability to meet market fluctuations
  • Leading position in electromobility and future, sustainable transport solutions

 

Last update: 07 Jul 2022