In an effort to drive more profit at Volvo Trucks, as well as implementing overhead cuts, chief executive officer Olof Persson is restructuring the management team and sales organisations.
The changes come as Volvo enjoys a global lift in third quarter truck orders while Daimler Trucks has seen a worldwide decline in its order bank according to Bloomberg.
Persson will whittle the top executive team down from 16 managers to 10. Volvo Trucks will also combine three regional sales groups into a single organisation.
The heads of the construction-equipment and financial-services units at Volvo Trucks will no longer be members of the top executive team.
Volvo Trucks says that spending cuts by 2015 will be lifted to a total of 10 billion kronor (1.74 billion New Zealand dollars) as the manufacturer intensifies cutbacks and the construction-equipment division and reorganises the truck-sales operation and reviews information technology systems.
Bloomberg reports that Volvo Trucks share price has risen as much as 14% since April 2010, and the company is valued at 183.1 billion Kronor ($31.78 billion New Zealand dollars).
The company has enjoyed a surge of sales in North America where it owns the Mack brand and orders have risen 14% to 50,449 vehicle. This contrasts to a drop in third quarter truck orders at Daimler-AG the world’s biggest truck manufacturer.
However, the surge in North America for Volvo Trucks has been offset by a 4.8% drop in third-quarter deliveries of 45,939 trucks in markets such as South America, Europe, and Asia.
