Volvo AB to separate Volvo Trucks, Renault VI, Mack units

STOCKHOLM — Volvo AB yesterday said it will break up its Volvo Global Trucks division and allow its Volvo Trucks, Mack Trucks, and Renault V.I. commercial vehicle operations to become separate business units.

The move will help the company leverage distinct and powerful brand names, Volvo said.

Volvo Global Trucks will be integrated with Volvo Group headquarters and will continue to be a business area within the Volvo only with regard to external reporting of financial results, the company said. The unit’s president, Tryggve Sthen, will stay on as a member of Volvo Group’s executive committee

When it acquired Renault V.I. and Mack Trucks, Volvo integrated the three truck companies into one with regard to product plans for both vehicles and engines.

“The greater part of this work has now been completed and the years immediately ahead will be characterized by implementation of approved strategies and product plans in order to take advantage of the synergies that have been created through the acquisition,” Volvo said.

The company said the move is aimed at creating a cost-effective structure with fewer levels.

That structure includes new reporting structures among senior executives.

Jorma Halonen, president of Volvo Trucks and chairman of Volvo Trucks North America, and Philippe Mellier, president of Renault V.I., will report directly to Volvo Chief Executive Leif Johansson. They will also be members of the Volvo Group Executive Committee.

Michel Gigou, president of Volvo Trucks North America, who is responsible for the integration of truck operations in North America, will become chairman of Mack Trucks and a member of the group’s executive committee, reporting to Leif Johansson.

Paul Vikner, president of Mack Trucks, will report to Michel Gigou.