Shouldering the social responsibility

China Daily | Updated: 2008-04-17 07:26

Volvo Group, a Sweden-based global group, has grown into one of the world's leading suppliers of commercial transport solutions with a wide range of applications for customers in the transport, construction and marine industries.

A new course has been set for Volvo Group in 1999 concentrating business on those products with the strongest positions and most competitive volumes. This meant that Volvo has exited the car industry and transferred these resources over to commercial vehicles, machines and engines through a series of acquisitions.

Three large acquisitions were made on three different continents: Samsung's excavator operations in East Asia, Renault Trucks in Europe and Mack Trucks Inc in North America. These acquisitions have strengthened AB Volvo's presence in Asia, making Volvo the largest heavy truck manufacturer in Europe, and the third largest in North America, and the world's largest producer of heavy diesel engines.

2007 is a significant year for Volvo's global strategy. It witnessed several major investments made by Volvo Group worldwide, particularly in Asia. Volvo closed the deal of acquiring Ingersoll Rand Road Development Division, invested 70 percent equity of Shandong Lingong - a leading wheel-loader manufacturer in China and acquired 96 percent shares of Nissan Diesel. Recently Volvo set up a joint venture with Indian vehicle-maker Eicher Motors Ltd, responsible for its overall trucks and bus sales as well as Volvo Trucks sales in India.

"As a global leading supplier of commercial transport solutions, Volvo Group is clearly aware of the commercial and social responsibility we should shoulder", says Mr Leif Jonhansson, president and CEO of Volvo Group.

Throughout decades, the Volvo Brand has achieved a strong global position. It is associated with the Volvo Group's three core values - quality, safety and care for the environment. Since 1990, Volvo has awarded the Volvo Environment Prize to world-leading scientists in areas of environmental research and sustainable development. This has brought the group into contact with a broad network of outstanding scientists around the world, manifesting Volvo's long-term involvement in major environmental issues facing society.

Volvo Group's net sales in 2007 increased by 10 percent to SEK285,405 ($48,221) million from SEK258,835 ($43,710) million. By the end of 2007, the number of employees of Volvo Group is over 100,000.

China, as the biggest and fastest developing country, enjoys a strategic position for Volvo Group. Since 1990s, Volvo Group's investments are on its way to peak in China. Till now the eight business areas under the group have entered China successively, involving Construction Equipment, Volvo Trucks, Renault Trucks, Volvo Buses, Volvo Penta, Volvo Aero and Volvo Financial Services, with the business covering more than 20 provinces, cities and autonomous regions across the country.