Volvo Group has announced its intention to introduce a new organisation for its truck dealer networks in Europe, the Middle East and Africa (EMEA). The move is aimed at enabling the company to capitalise more effectively on opportunities for the group’s brands, products, geographic coverage, industrial structure and economies of scale.
Under this new organisation, markets in the EMEA region will be divided into four new sales areas. Each of these areas will be responsible for sales of all of the group’s truck brands.
The company will maintain separate networks where it is seen that they can succeed over time. In other markets, networks will be integrated and dealers will be permitted to sell and offer service for more than one brand.
The current organisation has separate dealer networks for Volvo and Renault, the two brands that are sold in Europe. “By making smarter use of existing networks, we can capitalise more effectively on our various brands and products in the truck operation, while improving our service to customers,” said Peter Karlsten, Executive Vice President of Group Trucks Sales & Marketing EMEA.
Volvo Group has also decided to review the existing structure for the sales and marketing organisation. This move is aimed at improving efficiency. The OEM has said, however, that the implications for the reorganisation are yet to be determined.
“The new organisation for dealer networks and head office structures in the EMEA is a stage in the implementation of the new strategy for the Volvo Group’s truck operation … The strategy is a key component of efforts to gradually improve the operating margin of three percentage points,” Volvo Group explained in a statement.
