Volvo Group

Not to be confused with the Chinese company Volvo Cars, which produces cars under the Volvo brand

Business in Russia

Main article: Volvo Group Russia

Performance indicators

2022: Internet-Connected Construction Machinery Market Share - 5.6%

Data from the 2022 Counterpoint Global Connected Construction Machine Market Report

History

2023: $130m fine due to slow recall of defective trucks

On January 30, 2023, Volvo Group announced that it would pay a fine of up to $130 million under an agreement with the National Highway Traffic Safety Administration USA (NHTSA) in connection with conclusions that the heavy truck manufacturer was in no hurry to recall cars from the market and report injuries and deaths.

Volvo Group said it will pay a fine of up to $130 million under an agreement with the U.S. National Highway Traffic Safety Administration (NHTSA)

According to NHTSA, the $130 million amount, which includes an advance payment of $65 million, is one of the largest fines for violations of the US Vehicle Safety Act. The regulator revealed that Volvo Group North America (NA) has significantly violated US law. This included late filing of certain recalls, including inaccuracies in defect and non-compliance reports, and failure to comply with:

• Comply with the requirements for notifying owners of revocation;
• Provide certain quarterly recall reports;
• Submit specific manufacturer messages;
• Comply with early notification requirements, including reporting some deaths and injuries;
• Provision of specific field reports;

As of January 2023, Volvo Group (NA) is part of the Swedish company Volvo AB. Brands include Volvo Trucks North America, Mack Trucks, Nova Bus and Volvo Group Canada.

We look forward to continuing to work closely with NHTSA to identify and address all compliance gaps. Wide-ranging improvements to our North American processes and security systems as of February 2, 2023 are already underway, Volvo Group said in a separate statement.

Manufacturer Volvo Group (NA), which is separate from Volvo Cars, has also agreed to oversight by an independent third-party auditor from the United States and regular meetings with NHTSA to ensure any potential safety issues in defective trucks are addressed. The conciliation order will be valid until 2026. The regulator said it had the option to extend it until as early as 2028 for Volvo Group (NA) if necessary.^[1]

2020

4,100 job cuts

In mid-June 2020, freight and construction equipment manufacturer AB Volvo announced that the company will cut approximately 4,100 jobs in the second half of 2020 due to the COVID-19 pandemic, which led to the collapse of the global automotive industry.

The coronavirus outbreak has reduced demand for trucks, forcing Volvo and its competitors to cut costs. Earlier, truck manufacturer Scania also announced that it plans to significantly reduce the number of jobs.

AB Volvo announced that the company will cut approximately 4,100 jobs in the second half of 2020 due to the COVID-19 pandemic, which led to the collapse of the global automotive industry

The pandemic and global measures to combat it have led to a serious decrease in demand in our industry, "explained Volvo CEO Martin Lundstedt. "We must adjust our capabilities accordingly.

Volvo said about 15% of the cuts will come from consultants. In Sweden, roughly 1,250 jobs are expected to be cut. In total, the company employs about 104,000 people who serve customers in more than 190 markets. In 2019, net sales amounted to $45.6 billion, but at the end of April Volvo reported that the volume of orders for trucks in March decreased by 75% compared to February and since then the dynamics has remained negative.

According to the company's management, staff reductions could have been much higher if not for the various support packages state that allowed the company to send employees on leave with pay. The reductions will be carried out in different ways, depending on the local business situation, the country's legislation and labor market practice. In some countries, including Sweden, planned measures include termination notices and payments to victims.^[2]

Daimler and Volvo created a joint venture to develop hydrogen engines

On April 21, 2020, truck manufacturers Daimler Truck (a division of Daimler) and Volvo Group agreed on cooperation in the development of hydrogen engines. To do this, the German and Swedish companies created a joint venture Mercedes-Benz Fuel Cell, whose head office will be located in Nabern (Germany). Read more here.

2018: First commercial deliveries of self-driving cars

In November 2018, Volvo Group's first commercial deliveries of self-driving vehicles were announced. First, they will be used in the mining industry. Read more here.

2016: IT IT-Business sale to India's HCL Technologies with outsourcing agreement

In mid-February 2016, it became known that the Swedish automaker Volvo Group was selling its IT-Business to one of India's largest technology outsourcers, HCL Technologies. The companies also entered into an outsourcing agreement. Read more here.

2015: Shrinking IT service and outsourcing choice among Indian and US companies

In mid-June 2015, Volvo announced the reduction of its IT service and the transition to outsourcing. Although the automaker did not name the partner to whom it is going to entrust the maintenance of its information technology infrastructure, the media knows the applicants for the contract with the Swedish company.

According to The Economic Times (ET), citing a Volvo representative, the company found it cost-effective to cooperate with a professional outsourcer instead of keeping its own IT division.

Volvo cuts IT service and outsources

At the same time, the automotive corporation does not intend to completely get rid of the IT service: application development and maintenance of critical business systems will remain within Volvo, a company representative said.

a progressive process, and we do not intend to comment on anything before concluding a contract with an external partner," Volvo added, declining to name potential contractors.

According to ET sources, Indian companies Infosys and Tata Consultancy Services, as well as American IBM and HP, will compete for the IT contract with Volvo. It is reported that the Swedish auto brand is looking for a partner for a period of three to five years and is ready to pay him at least $100 million annually. Thus, the total cost of an order for IT outsourcing can be about $500 million. The deal is scheduled to be decided by the end of June 2015.

The interlocutor of the publication says that Volvo faced difficulties due to the need to reduce costs, and any non-core and unprofitable business has a difficult time. IT is central to Volvo's cost structure, so it would be wiser to pass it on to professional outsourcing firms, according to a source familiar with the situation.

Volvo itself admits that involving a third-party company in the maintenance of IT infrastructure will reduce costs.^[3]

1999: Passenger car business sold to Ford for $6.45 billion

In 1999, Volvo decided to sell the passenger division in order to concentrate on commercial transport. Ford considered it profitable to buy a profitable prestigious European automaker, which has proven itself well primarily due to its emphasis on safety. The $6.45 billion deal was announced on January 28, 1999 and completed during the same year.

1927: Establishing a company

Volvo has existed since 1927.

Notes