Brand New Restructuring
Big changes are coming to the Volvo Group company beginning this spring. Instead of being one major global company as it is now, it will be partitioned in ten separated business unit divisions. Each unit will independently stand on their own financially, which Volvo is hoping will lead to greater financial control and the possibility of higher growth in sales and profit volumes due to the increased efficiency.
Changes in Leadership Roles
The 13 executive members within the Volvo Group will remain the same, but they will also be divided up between the newly formed units with each of them having new more clearly defined roles and responsibilities. The structural reorganization that is taking place will allow each of the new company units to better focus on increasing their product’s overall quality because they will only have to be concerned with one type of product and no longer be so scattered as before. This should in turn have a positive effect on Volvo’s overall customer satisfaction with their products and services. Luckily, the structural reorganization will not effect the overall number of employees that the Volvo Group maintains, so no employee layoffs are expected. Just the organizational structure and the methods of allocations of profits and expenses will be changed. Because Volvo is a global company, most of the major changes taking place will be outside of their North American operations, so customers in the United States will not notice as much of the differences as those in other countries will.
Expect the Changes Soon
In roughly two more months time, the Volvo trucks will be broke down in to four units. Their remaining companies (such as governmental, construction, and financial services) will also have their own units as well. So far, there has been no mention of any expected delays in the restructuring, so if everything still goes according to plan, the changes will be effective in March.