News and Media VGM 1 2019 en

ST O R I E S F R O M T H E WO R L D O F T H E V O LV O G R O U P
1.2019
TAKING CARE
OF BUSINESS
HOW TO KEEP A STEADY COURSE IN A CHANGING WORLD
ED I T O R I A L
We all contribute
to our business
M
O ST C O M PA N I E S A R E set up by There are a number of important areas in
one or two people who are filled which we can benefit from our size and the
with enthusiasm for a concept that fact that we are a group. This includes the
will create value for their future development and production of engines and
customers. transmissions and new technological areas such
In a newly established company, the founders as connectivity, electromobility and automation.
usually do everything themselves. It is up to At the same time, there are many other areas
them to make their customers satisfied, grow the in which it is far more important to act swiftly
company to make it viable and make sure that it rather than pursuing economies of scale and
generates a profit. If possible, this profit should standardisation. In these areas, local solutions,
cover immediate salaries and enable investment working methods and structures that are ideal for
in the company so that it continues to develop. that specific market or business are better.
The link between cause and effect is obvious. Even in this large group, we can encourage
The founders are informed directly by customers everyone to think a little more like the founder
telling them what they think and feel and they of a small company. To consider the value of
have complete freedom and sole responsibility money, even if it is the company’s money. To
for making the right decisions and dealing with invest in things that really make a difference.
things that need to be managed. Finally, to work to achieve good
As the company grows, the complexity also profitability, both now and in
increases. The decision-making routes are longer, the future.
customers become more distant and the freedom It is a question of taking
for individuals to make their own decisions is responsibility and utilising
reduced. the driving force that exists
During the past few years, we have chosen in each and every one of us –
to decentralise decision-making within the because we all contribute to
Volvo Group because we believe in releasing our business.
the strength that is naturally inherent in small
companies. We want more people to have the
opportunity to do real-life business. This builds
our engagement and develops our skills and
ability, but it is first and foremost good for our
MARTIN LUNDSTEDT
customers if decisions are made as close to their PRESIDEN T AND CEO,
businesses as possible. V O LV O G R O U P
VOLVO GROUP MAGAZINE is aimed at all the co-workers within the Volvo Group. It is published five times a year in Swedish, English, German, French, Portuguese for Brazil,
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Markus Lindberg E D I T O R - I N - C H I E F Tobias Wilhelm E D I T O R S Åsa Alström, Lotta Bävman, Monika Voland and Linda Joneland. A Group-wide Editorial Network also contributes
content. M A R K E T L A N G UAG E R E V I E W Tobias Wilhelm E D I T O R I A L P R O D U C T I O N Spoon (project team: Linda Swanberg, Jimmy Håkansson, Nic Townsend, Pernilla Stenborg,
Ken Niss, Sofia Hammarin) P R I N T E D BY LSC Communications C H A N G E O F A D D R E SS Contact your local HR T R A N S L AT E D BY Jeanette Kliger
2 V O LV O G R O U P M A G A Z I N E 1 . 2 0 1 9
1.2019
08
Riding
the highs
and the lows
The need to be agile, sharp
and responsive is a key
lesson the Volvo Group can
learn from its customers.
Especially in a market as
volative as Thailand.
08 24 Behind the scenes

of a viral video hit
With the help of a Hollywood star,
Volvo CE’s “Pump it up” campaign
helps shine the spotlight on the
excavator product range.
32 A high maintenance
market
In Japan, customer expectations when
it comes to product quality and services
leave no room for failure.
48 Mutual support
in turbulent times
24 32 At the plant in Skövde, Sweden, an
agreement is in place to help protect
employees in a fluctuating economy.
54 Breaking new ground

within automation
Volvo Trucks’ first ever commercial
autonomous solution will soon be in full
operation for an actual customer.
ALWAYS INSIDE
4 START
48 54 62 INSIGHTS
68 COMPETITION
V O LV O G R O U P M A G A Z I N E 1 . 2 0 1 9 3
start AROUND THE WORLD WITH THE VOLVO GROUP
A premium customer experience

I N M E X I C O , bus operators have identified a differentiated positioning based on the
a strong advantage to effectively Volvo brand’s attributes and the coaches’
communicate the attributes associated unique characteristics. Volvo Buses
with the vehicle in which they offer their Mexico achieved record levels of customer
services. This is why Volvo Buses in satisfaction in 2018 as part of the result,
Mexico has proactively assisted clients in which also contributed to an increase in
communication that contribute to build brand image.
Great places to work in Latin America
P H O T O : V O LV O G R O U P
T H E M E R C O C O M PA N I E S and
P H O T O : G R EG S A L I B I A N
Leaders 2018 Ranking has recognised

Volvo Group Peru as the company
with the best corporate reputation in
the automotive sector. Volvo Group
Peru also attained first place within
the automotive sector in the Merco
Talent Ranking, which ranks the best
companies to attract and retain talent
in Peru.
Meanwhile Volvo do Brazil was
Camp X by Volvo Group
Carlos Ogliari receives the Best Place to Work
also deemed the best company to award from Elisa Tozzi of Guia Vocà. The official inauguration of Camp X
by Volvo Group takes place at the end
work for within the automotive sector of March 2019. Located at Campus
in Guia Você S/A’s annual national people management practices. This Lundby in Gothenburg, it will be
survey, conducted by one of Brazil’s award reinforces our excellent ability an innovation arena that will bring
most renowned publications on together people from different parts
to attract and retain our best talents,”
of the Volvo Group, as well as external
organisational climate. claimed Carlos Ogliari, Vice President of partners, to explore and accelerate both
“This result acknowledges the HR and Corporate Affairs for the Volvo technology and business ideas.
maturity and cutting edge nature of our Group in Latin America.
P H O T O : V O LV O B U S ES M E X I C O
EDT
R I TA V I K ST
PHOTO: CA
H EL L O . . .
… Guillaume Perez, Commodity

Buyer
You initiated the project Green Energy,
what is it about?
“It’s a cross-functional project with GTP
in the lead, involving almost all TD/BAs in
the Volvo Group. The goal was to create
common requirements for green electricity
in our facilities in Sweden, France, Belgium
and the US. We showed the local teams
Volvo Buses delivered a fleet of twenty 9800 two scenarios, one with regular electricity
coaches to coach operator Omnibus de México
in an event that integrated a full experience for and one with green electricity. Their choice
their representatives. was green electricity, so for the first time
we have a purchasing strategy for green
electricity!”
What has been the best thing about this

project?
PHOTO: ROBIN ARON
“The team spirit is the best! And to be

a part of this worldwide team working
Martin Lundstedt towards the same goal. I enjoyed working
“Leader of with everyone, especially Mylene Perales

and Zachery Wentz who play an important
the year 2018” role in the project. And of course, we can’t
ignore that we have an impact on the planet.
S W E D I S H newspaper With Volvo Group in Sweden, France,
Affärsvärlden, together with Belgium and the US adapting to green
PA Consulting, Mannheimer electricity for all their facilities, we can make
Swartling, Wipro and Korn Ferry, a difference.”
has appointed the Volvo Group
President and CEO Martin What’s the next step?
Lundstedt as “Leader of the “The local teams are preparing to
year 2018.” Enthusiasm, deep implement new suppliers. This is a new
industry knowledge and extensive business model for everyone except Sweden
teamwork were factors highlighted so we need to learn along the way. This is
by the jury as grounds for the one of many steps we are taking to act in a
appointment. more sustainable way. We have planted a
seed, now we have to let it grow.”
M A R I E FA L K
start AROUND THE WORLD WITH THE VOLVO GROUP
Hack Sprint gets results

T H E V O LV O X H AC K S P R I N T
was the first hackathon co-
hosted by Volvo Construction
Equipment and Volvo Group
Connected Solutions.
Multidisciplinary teams
had 72 hours to develop a Volvo Group
real world solution that can
help customer inspect their University
machines using nothing more wins gold!
than a smartphone. The overall
winner was a team from V O LV O G R O U P U N I V E R S I T Y
Sigma Software in Ukraine. won two international gold
Volvo Construction Equipment awards for its online team
and Volvo Group Connected training programme “Meet the
Solutions are exploring ways Customer”. The awards were in
to build upon the solutions the categories of Best Learning
generated during the hackathon Game and Best Design, as part
with an ambition to release a Hack Sprint saw multidisciplinary teams develop real world of the Learning Technology
demo during Q2 2019. solutions for inspecting construction machines in just 72 hours. Awards. “A triumph of design and
technology” and “an imaginative
combination of technology-led
learning and social learning”
were part of the jury’s verdict.
700 city buses Volvo Group Trucks
to Colombia Technology initiated the
programme and the challenges
Volvo Buses has won a public tender
to deliver 700 city buses to Bogotá,
in the training game are based
Colombia. The buses will operate in on real customer examples from
Bogotá’s BRT (Bus Rapid Transit) Volvo Trucks.
system. The new order is the largest If you have not played the
in ten years for Volvo Buses in Latin
America and confirms Volvo’s leading game yet – take the time to do
position in the BRT segment. so with your team! The training is
available via Navigator.
New showroom
P H O T O : R E N AU LT T R U C K S
THE NUMBER
at Renault Trucks
A L L V I S I T O R S T O Renault Trucks’
headquarters in Lyon, France will now
be welcomed in a entirely refurbished
and renovated showroom. Named
Renault Trucks Square, the 2,400 m2
space includes exhibits of Renault
Trucks current range, some historical
8
The number of activity-
based workplaces in the
Volvo Group, located in
Berliet vehicles and displays of different Sweden, Norway, Belgium
innovation breakthroughs. It is the and Singapore. Ten further
perfect space for greeting customers, activity-based workplace
projects are in the pipeline.
VIPs and the media, as well as hosting Renault Trucks Square is the perfect space for hosting
key handovers. customers, VIPs and key handovers.
PHOTO: SANNA TEDEBORG
Meet the editorial team ...
...for this issue of Volvo Group Magazine. A Group-wide editorial network
also contributes content from all over the world.
Monika Tobias Lotta Linda Åsa

Voland Wilhelm Bävman Joneland Alström
Volvo Trucks Editor in chief Group Trucks Group Trucks Volvo CE
Operations Technology
Volvo Group EDITOR’S NOTE
Magazine More augmented reality

wins silver! I H O P E YO U enjoyed all the
V O LV O G R O U P M AG A Z I N E augmented reality features we
was awarded a silver prize introduced in the last issue? If
at the Swedish Design you did – or if you missed out,
Awards for issue #2 rest assured that there is new
2018. The magazine’s material in this very magazine. All you have to
main theme was “Driving do is download the app Volvo Group AR Stories,
prosperity through look for this symbol in the magazine, and
transport solutions”. It follow the instructions. Augmented or
featured an unusual cover, traditional: enjoy your reading!
depicting an emergency TOBIAS WILHELM,
room in a Lebanese hospital that uses a Volvo Penta EDITOR IN CHIEF
engine to secure continuous electricity.
OW N ER ’S M EN TA L I T Y
Over the past two decades, the Thai construction industry has
experienced multiple booms and slumps. Through it all, the company
Rojana Pattana has always found a way to survive, prosper and come
out stronger than before. A RT HU R J O NE S DIO NIO
TEXT J O NAS GRATZE R
PHOTO
Thriving through
the turbulence
In Thailand, the prospect
of new elections could
bring an upturn in the
construction market and
increased interest in UD
Quester Trucks.
Rojana Pattana saw notable fuel

savings with UD Quester Trucks.
Each truck covers a distance of
about 700 kilometers every day.
F
O R T Y K I LO M E T E R S N O R T H of Rojana Pattana’s day-to-day operations. “We
Bangkok, dozens of trucks form a supply a good number of construction sites in the
line inside Rojana Pattana’s depot, capital and our clients rely on our deliveries.”
moving one-by-one to a gas station Rojana Pattana’s client base recently grew to
for refueling. The hum of engines include a host of condominium developers, the
breaks the silence of dawn to signal Bangkok metro rail system, large industrial estates
another busy day. and government roadworks.
At 5:30 AM, the semi-trailer trucks snake
through rural roads. The fleet is taking A S A SS I STA N T M A N AG I N G Director of Rojana
gravel from nearby provinces for use in the Pattana, Nattanicha Pannapat oversees a business
ever-expanding infrastructure and property division that generated 300 million baht (USD
development projects in metropolitan Bangkok. 10 million) in revenue in 2017. Nattanicha
Pannapat, once an
During peak months, the trucks operate from She was practically groomed by her father
reluctant heir to her
dawn well into the night. On average, the trucks to become the company’s future leader. “This family’s trucking
make three delivery rounds per day, bringing wasn’t a career that I really liked at first, but I business, now
thousands of tons of gravel from the provinces knew I could do the job. My father made sure I oversees revenue
of around USD 10
nearby to Bangkok and its suburbs. By the learned how to reach out to all types of people, million. “We supply
company’s own calculation, each truck covers a make proper judgement and turn challenges into a good number of
distance of about 700 kilometers per day. opportunities.” construction sites in
the capital.”
“We feel that we helped build the foundation Rojana Pattana’s history is full of stories about
of the infrastructure and the high rises of modern overcoming challenges and about being able
Bangkok,” says Nattanicha Pannapat, who runs to consistently provide a trustworthy service
ROJANA PAT TANA CO.,
LTD. (THAILAND)
Established: 1995
Number of employees: 270
Number of UD Quester Trucks:
39 (other trucks are from Fuso and
Hino)
Revenue in 2017: 300 million
THB or USD 10 million (estimate)
“We feel that we helped

build the foundation of
the infrastructure and
the high rises of modern
Bangkok.”
N AT TA N I C H A P A N N A P AT, A S S I S TA N T M A N A G I N G
D I R E C T O R , R O J A N A P AT TA N A
to clients. When the company was founded But being a new company meant Rojana
in 1995, it was in the midst of a property Pattana’s base was still small, so the financial
bubble in Thailand that eventually triggered the impact was not overwhelming. Nevertheless,
1997 Asian financial crisis. The property and surviving the economic collapse was everyone’s
construction industry crashed along with swathes main preoccupation at the time.
of other industries. Thousands of companies went The company ended up subcontracting from
bankrupt. the Siam Cement Group (SCG), Thailand’s
VOLVO GROUP TRUCKS

IN THAILAND
Total market (HD/MD/LD):

27,373 units
Deliveries: UD Trucks 635 units,
Volvo Trucks 273 units
Market share: UD Trucks 5%,
Volvo Trucks 2%
Main customer segments: UD
Trucks building and construction
segment, Volvo Trucks
petrochemical segment
VOLVO GROUP TRUCKS

ASIA & JVS
Established: 2016
Headquarters: Singapore
Employees: Approx. 1900
Brands: UD Trucks (Quester,
Croner, Kuzer), Eicher and
Dongfeng
JVs: Dongfeng Commercial
Vehicles (DFCV), Volvo-Eicher
Commercial Vehicles (VECV)
Market coverage: More than
40 countries in Asia, Africa, the
Middle East and Latin America
Production: 170,000 m² plant in
Samutprakarn, south of Bangkok Detchai Chairat, Rojana Pattana’s
head mechanic, says Volvo’s
onsite repair service is a very
convenient solution.
largest cement company, which was expanding built by the Volvo Group for the Asian market,
its sub-brand of ready-mix cement. Even at very gained immediate praise from the company’s
low profit margins, the company kept working drivers and technicians. Detchai Chairat, Rojana Aggregate being
unloaded in a
with SCG to keep the business afloat and avoid Pattana’s head mechanic for the past nine years,
Bangkok suburb.
degrading its assets. says: “The new UD Quester trucks are quite Rojana Pattana’s
The strategy struck some luck. durable. We hardly have to do any repair during clients include
“Business took off. SCG wanted to change the first few years of usage. Our drivers find them condominium
developers, the
its service by adding the new aspect of on- comfortable, smooth to handle and are quite Bangkok metro
time delivery. But many of its old partners stable during deliveries.” rail system, large
were resistant to change. This opened a major Fuel savings are notable, he adds, because UD industrial estates
and government
opportunity for our company. Our partnerships Quester runs between 3.5 to 3.9 kilometers per road contractors.
also expanded because people trusted us,” liter of fuel, giving it a significant edge over other
recalls Nattanicha Pannapat of the company’s brands in the fleet.
breakthrough. Apart from technically-sound vehicles, Volvo
Building trust meant Rojana Pattana had to Group’s aftermarket services have also impressed
always deliver on time. This required reliable Rojana Pattana. A mobile maintenance service is
equipment at a price deemed reasonable for a available for trucks within the warranty period.
startup company. It became an early adopter of Drivers can call for onsite repair if needed, a very
UD Trucks in Thailand. convenient solution especially if problems arise
The new UD Quester trucks, specifically on a weekend.
“Volvo Group executives actually understand However, the outlook for Thailand may change
our need to be able to conduct business properly. after the current military led regime announced
We like that we can call their key people directly that elections will be held this year. There is a
when we need support. They’ve also been sentiment in the business community that strong
accurate about delivery times for spare parts and economic performance can be propelled by a
repairs. This is important because our business democratically-elected government, bringing
requires certainty,” Nattanicha Pannapat explains. back normal governance in political and business
affairs.
I N PAST Y E A R S , political turmoil has cast Nattanicha Pannapat beams with optimism on
economic uncertainty in the country. For Rojana future prospects. “After the election, there will
Pattana, the impact was a ten per cent decline in be a new wave of investments in construction
revenue in 2018 because a significant number of and property development. We will be ready to
government infrastructure projects were put on respond to these opportunities and break into
hold. larger markets.”
Q UA L I T Y I N F O C U S
A quality
revolution
UD Trucks’ Quester and Croner represented a huge
learning curve for GTA & JVs. Yet the levels of quality
delivered by the young organisation are among the
best in the Volvo Group. This is how it was possible.
TEXT N I C TOW N S E N D PHOTO UD T RUCK S & SA NNA T E DE B O RG
T
H E L AU N C H O F the Quester in and lots of new processes and systems. During
2013 and the Croner in 2017, the Quester launch, we basically completed a
were significant milestones, not journey that most other business areas did over
just for UD Trucks and GTA ten years.”
& JVs, but for the whole Volvo
Group. These were the first D U R I N G T H E I N I T I A L launch period, the team at
models to be fully developed in GTA & JVs dealt diligently with all the challenges
Asia, specifically for emerging markets. that inevitably come with any new product
“Historically, we have sold trucks that had introduction. However, as a young and relatively
already been launched in Europe or Japan, and inexperienced organisation, they were not fully
all the hurdles that come with a truck launch aware of the exceptional level of quality and
had already been taken care of,” says Franck reliability they were delivering. Today, the fault
Massardier, Quality, Warranty & Dealer Support frequency and warranty payments of both models
Director, GTA & JVs. “But the Quester and remain among the lowest in the Volvo Group.
Croner were completely new products. A new The key to this success was a mixture of
design team, a new supplier base predominantly adopting Volvo Group quality tools combined
based in Asia, a new assembly plant in Thailand with some locally adapted initiatives. “We have
The fault frequency and warranty claims for the
UD Trucks’ Croner are exceptionally low, and
are due to a successful cross-functional team
effort from GTA & JVs.
Q UA L I T Y I N F O C U S
“I can go and meet a

customer in the middle
of nowhere and I already
know exactly what has
happened to his trucks.”
F R A N C K M A S S A R D I E R , Q U A L I T Y, W A R R A N T Y & D E A L E R
S U P P O R T D I R E C T O R , G TA & J V S
A N O T H E R B I G E N A B L E R has been the use of

big data to monitor warranty claims and quality
in each market. In essence, multiple databases
have been integrated and connected, and made
accessible via one user-friendly interface. “I came
across a tool in the Volvo Group that enabled us
to analyse data and drill down to small details
in seconds,” says Serene Ong, Senior Manager
Warranty, who was instrumental in developing
GTA & JVs’ own version of the tool. “We were
able to connect our data with the warranty
and quality databases and, all of a sudden, we
instantly know what is going on in the markets.
We can detect warranty claims earlier, react faster
and reduce warranty costs in the process.”
Big data has proven invaluable for monitoring
dealer performance and ensuring all necessary
repairs and services are performed as and
when they should be. “She has changed my
Serene Ong and Franck Massardier are both part of the team that delivered life!” says Franck Massardier, only half-jokingly
exceptional levels of quality with the launch of UD Trucks’ Quester and Croner. about Serene Ong’s work. “I can go and meet a
customer in the middle of nowhere and I already
know exactly what has happened to his trucks.
Quite often, I am even more aware than they
are, so I can anticipate their
taken everything we could from the Volvo concerns and already have a
Group – from Volvo Trucks, Renault Trucks, solution before we meet. In
Volvo Buses – if we find a good idea, we take the 30 years I’ve spent in the
it,” explains Franck Massardier. “But we also Volvo Group, I think this is
develop processes and governance adapted to our the biggest revolution I have
challenges.” witnessed.”
One key initiative that proved particularly However, the biggest
successful was Intensive Runs. Trucks were given factor in making such
to selected customers who were then visited Manu Sathyan rapid and comprehensive
monthly for a complete audit, covering 138 quality improvements is
different items. This enabled 50 per cent of all the cross-functional team behind the scenes.
quality issues experienced so far to be detected in “Quite frequently, team members from Sales
the first six months after launch. and Technology are away on the front line with
Three ways
to improve
CRONER
quality
The Croner was
launched in 2017 and A total of 15 key initiatives
is a medium-duty
helped GTA & JVs deliver
truck also designed
and developed exceptional product quality.
specifically for These are just the top three.
emerging markets.
1
It includes a number
of unique features Appointment of the new
in its segment, most product service Quality
notably an automatic Senior Manager during the
transmission.
development phase. One
year before the launch of the
Croner, Thilak Baluchamy and
Jagadeesan Subramaniam
were appointed Quality
Senior Managers and were
able to secure accountability
throughout the project
handover, as well as during the
first year of launch
2
QUESTER
Market Quality Analysis
Launched in 2013, Report. An application
the Quester range for collecting information
of heavy-duty
on quality issues that are
trucks was the first
model developed system related. This shortens
by the Volvo Group the analysis lead time and
specifically for develops competences for
emerging markets
in Asia, Africa, the complex system analysis.
Middle East and
3
South America. Big Data Analytics.
By connecting multiple
databases together with one
user-friendly interface, detailed
information and market
customers to resolve issues as quickly as possible. insights were instantly made
The collaboration between Sales, Purchasing, available.
Operations and Technology is a real asset,” says Read more about big data
Manu Sathyan, Vice President Quality, GTA & on pages 39–43.
JVs.
“I have never witnessed such talented and
committed people,” says Franck Massardier
commenting on the team. “They were
continuously coming up with ideas, nothing was
deemed impossible and they were extremely
motivated. The high quality standards set by the
Quester and Croner confirm the old adage – ‘it’s
all about people’.”
I N T ER V I E W
In his new role, it will be Jan

Ytterberg’s responsibility to help
ensure the Volvo Group is ready for
any future downturns. He describes
his experiences during the 2008
recession as “dreadful”, but it taught
him the importance of preparation
and keeping things in order when the
market is good.
JA N Y T T E R B E R G , C F O VO LVO G R O U P
Keeping things
in good order
Jan Ytterberg, the Volvo Group’s new CFO, sees
himself as a financial navigator. It is his job to make sure
that the people responsible for operations are able to
make the right decisions in a business environment
that is moving at an increasingly rapid rate.
TEXT SUSANNE HANSSE N PHOTO MAGNU S GÖTANDE R
W
H E N Volvo Group Does that worry you?
Magazine met Jan “No, quite the reverse. It was the Volvo
Ytterberg at the Group’s size and global reach that attracted me
Group’s headquarters in the first place. What’s more, the Group is
in Gothenburg, he currently in the midst of an exciting journey.”
had been in his new
job for just over three Could you explain what you mean?
weeks. Among other things, he had found time “Operations will continue to be decentralised
to make a trip to Brazil and meet colleagues in and decisions will be made closer to customers.
different business areas. It was an added bonus, as This represents a change in behaviour and
Jan Ytterberg had previously spent two years in culture which is really important. I took part in a
the country, a place he really loves and feels very corresponding journey at Husqvarna and I know
much at home in. how much power is released by a process of this
kind.”
What are your impressions of the Volvo Group
so far? You have joined the Volvo Group at a time when it
“Well, first and foremost, all the positive, skilled is reporting fantastic results. How does that feel?
individuals who are really ambitious and have a “It goes without saying that it’s great to start
great deal of experience. This is a professional when things are going well. At the same time,
organisation and it’s going to be incredibly it’s also important to remember that we are
enjoyable to work here. I have also been struck by all responsible for the results. I am going to
the size of the Volvo Group compared with my contribute in the best possible way, but it is
last two workplaces.” our operations that actually generate the result.
I N T ER V I E W
The fact that the finance department works out When will there be a downturn?
exactly how well the Group does is just part of “Unfortunately, that’s impossible to predict.
the job.” The only thing we know is that it will happen
and that we need to be prepared.”
What is your role as CFO?
“I have to make sure that the finance team In which way?
at the Volvo Group are given the best possible “We need to apply the brakes at the right
conditions to do their jobs. As finance people, we time with the right braking distance and make
have three different roles. We support operations sure that there are no unpleasant surprises in
with information and analyses, as experts, we store, such as bad debts or large stocks and
give advice proactively, challenge operations from credit. Money is in short supply in a way we
time to time and make sure that the frameworks are not used to. So we need to keep things in
are followed. What’s more, we have to ensure good order now, when times are good. When
that the work is done as efficiently as possible demand declines, we encounter new problems. I
and that the Volvo Group puts in a top-class experienced this in the recession in 2008 and I
performance.” saw the consequences.”
“I enjoy working in teams. No one
can achieve something great on
his or her own. Groups succeed in
achieving the best results.”
J A N Y T T E R B E R G , C F O V O LV O G R O U P
prepared to make decisions, when it comes to

JAN reducing volumes and deliveries or cutting back
YT TERBERG on activities, for example. It’s also important to
Born: 1961 in help people understand the consequences of a
Stockholm downturn, even if the message is depressing. So
Education: Master’s that they understand why their particular project
degree in business is unable to begin or needs to be shelved.”
administration
and economics at
Stockholm University What kind of leader are you?
Career: “I try to be open and transparent, with no
1987-2006: Different thoughts of prestige. I think people are fun and
positions in finance I enjoy working in teams. No one can achieve
and accounting at
Scania something great on his or her own. Groups
2006-2015: succeed in achieving the best results. I would
The current direction of the Executive Vice
Volvo Group, combined with
also like to think that I am competent and
President and CFO at
its size and global reach, is Scania
experienced within finance.”
what attracted Jan Ytterberg 2015-2018:
to the role. “The Volvo Group CFO, Husqvarna AB What are you proud of?
is currently in the midst of an
exciting journey.”
Interests: “First and foremost, I’m proud of my four
“I like cooking good children and the fact that my wife and I have
food. I enjoy good
wine, something succeeded in creating a good life. I’m also proud
I learned from the that I have obtained in-depth experience and
four years I spent skills in my job and that I’m able to share them
in Spain. I like
exercising when I
with other people.”
How was it? have time – running,
“Dreadful! Liquidity was the worst thing. cycling and golf.” What are you less proud of?
Customers were unable to pay and the company “The times I made poor decisions which have
where I worked didn’t have enough money in harmed other people. As a leader, it’s obvious
the coffers. In a large organisation like the Volvo that you need to make difficult decisions without
Group, one week’s payments to suppliers can having all the cards on the table, but that doesn’t
total many billion kronor, for example. If our mean that you lack empathy.”
customers run into problems paying us, the
liquidity quickly disappears.” As a young man, you wanted to be a sports
teacher. Do you regret not doing that?
What advice would you give the Volvo Group’s “No, I’m sure working as a sports teacher
employees prior to a potential forthcoming down- would have been interesting and stimulating, but
turn? then I wouldn’t have experienced all the exciting
“Well, right now, it’s a question of being careful things in this job. Everything has its pros and
and creating flexibility. When we see the signs of cons. I am now really looking forward to working
a downturn, we cannot simply sit and wait. Be at the Volvo Group.”
moments SNAPSHOTS FROM THE VOLVO GROUP
P H O T O : V O LV O G R O U P I N D I A
8.48 pm
Bangalore, India
O N 3 N O V E M B E R , 2018, over
6,000 Volvo Group employees
and their families celebrated the
20th anniversary of the Group’s
operations in India with a day-long
event in carnival style.
Here the audience is being
entertained by various dance,
music and singing performances
courtesy of the Volvo Superstars,
an ensemble of talented Volvo
Group employees selected through
audition.
The celebrations served as the
grand finale in a long series of
smaller events, including sporting
activities, cultural initiatives for
employees, talent shows and
a traffic safety programme for
employees’ children.
PUMP IT UP
RISING
STARS
With action hero Dolph Lundgren as
the gruelling drill instructor, Volvo CE’s
excavators show that they are ready for
any challenge. They now plan to conquer
the world.
TEXT L I N DA S WA NBERG & NIC TOWNSEND
PHOTO VO LVO CE I L LU ST R AT I O N K EN NISS
T
H E TA R G E T O F the “Pump it up” We need to make more people aware of both
awareness campaign, which was our existence and what we do. So we chose to
launched in October last year, reach outside the traditional core target group
is truly ambitious: to strengthen with a campaign that is both entertaining and
Volvo CE’s position in the spectacular,” says Per Åkerlund, Project Manager
excavator sector. This is because, at Volvo CE.
despite investing heavily in its In “Pump it up”, Volvo CE collaborated with
product portfolio over the past 20 years, the the same advertising agency that produced Volvo
company has not enjoyed the same success as it Trucks’ successful film, Epic Split, with Jean
has in other segments, such as wheel loaders and Claude Van Damme in 2013. A Hollywood star
articulated haulers. was once again given the leading role.
“Excavators are strategically important, but we “We wanted someone who is associated with
do not have the market position that we want. action who could both stretch and challenge
In Pump it up, viewers get to
see what Volvo CE’s excavators
– in every conceivable size
and weight class – are capable
of achieving on a challenging
obstacle course. All the action
in the film is real, with no extra
assistance or special effects.
See the film!

“Rise and shine, maggots! I’m
here to pump you up!” See
Dolph Lundgren challenge
Volvo CE’s excavators through
the Volvo Group AR Stories
app.
PUMP IT UP
our excavators. It was also important that it was work into establishing the
someone who would be immediately recognised campaign internally and
by viewers. And just like Volvo CE, Dolph very many people have been
Lundgren has Swedish roots,” says Per Åkerlund. involved – from sales staff to
engineers, operators and social
I N T H I S 9 0 - S E C O N D film, Volvo CE’s excavators media experts,” explains Per
tackle a number of gruelling challenges Åkerlund.
requiring stamina, strength and precision. With Just four weeks after the
Technotronic’s hit, Pump up the jam, as the Per Åkerlund launch, the film had been
soundtrack, excavators both large and small seen by 50 million viewers on
perform push-ups, pull-ups and tyre flips, as well media platforms including Facebook, Instagram,
as pulling heavy blocks of concrete. LinkedIn and Volvo CE’s webpage.
The film was recorded in a quarry outside “Both engagement rate and play-to-end rate
Volvo CE’s home town of Eskilstuna in July last are perceived as very high and the content has
year. Even if Dolph Lundgren plays the leading been picked up by many different verticals
role, broad-based collaboration within Volvo CE beyond our traditional industry magazines.
has made everything possible. As the film was The campaign has definitively ‘pumped up’ the
launched globally, it was important that all four Volvo organisation and our dealer networks. The
sales regions were included. next step is to make sure we capitalise on the
“There are large differences when it comes awareness that has been created and attract non-
to the way things are expressed in both Volvo customers to buy our hero excavators,”
communication and culture. We put a lot of says Per Åkerlund.
In the film, Volvo CE’s machines are put through

their paces by Hollywood star, Dolph Lundgren,
best known from films such as Rocky IV,
Universal Soldier and The Expendables. “This
assignment was probably the most unusual
role I have ever accepted. It was fascinating to
see how Volvo CE’s excavators and their skilled
operators managed to perform all the different
physical challenges – without any film tricks
whatsoever,” he says.
KEY PLAYERS
THE PEOPLE BEHIND THE ACTION
“To begin with, I “Awareness “Once customers

was both nervous building is know us,
and afraid” a long-term goal” they love us”
Adam Lindberg Elodie Guyot Sungmo Yang
INSTRUCTOR, MARKETING & SALES SUPPORT GLOBAL PRODUCT MANAGER VP EXCAVATOR PLATFORMS AND ON
FOR COMPACT EXCAVATORS THE CAMPAIGN STEERING COMMITTEE
“Performing pull-ups with a compact
excavator ten metres in the air is like “What we have tried to do with “Excavators account for more than 50
nothing I do in my everyday job. To the ‘Pump it up’ campaign is to per cent of construction machinery sold
begin with, I was both nervous and communicate in a completely different globally, yet Volvo CE’s market share is
afraid, but those feelings disappeared way, by making a strong, impactful less than ten per cent, so we see huge
once the bucket was firmly attached to movie. Our goal is that when someone opportunity for growth. What we’re
the iron girder. My assignment during wants to buy an excavator, they think trying to do is to build pullpower from
the recording was to drive the machine of Volvo. Today, it is too early to see the the market. Many of our customers
upside down, while parrying the bucket full impact of the campaign, but it has do not even know that we make
angle. Keeping the excavator in the been seen by millions of people, so that excavators. But in segments where
same position the whole time was the is a really big achievement! They will awareness is high, our market share
principal challenge. not all go out and buy an excavator, but is good and our conversion rate with
“Pull-ups are not actually something awareness building is a long-term goal. prospective customers is also very high.
you should do with an excavator. At the Maybe it will impact a friend or relative, “So, in short, once customers know
same time, this stunt demonstrates the or someone else a few years later? If we our products, they love our products.
quality and strength of our machines can make more people aware that we That’s the starting point of this market
– the fact that a 2.5-tonne compact exist, we will become even stronger on awareness campaign. Hopefully,
excavator is able to lift its own weight is the market. by reaching out to so many people
really cool. “I think it’s a really effective film and generating so much publicity,
“As an instructor, I drive everything because there are no special effects. the ‘Pump it up’ campaign will help
from asphalt pavers to compact Everything we do with the machines make Volvo CE better known as a
excavators and, from my viewpoint, reflects what they can do in reality. It’s manufacturer of excavators.”
Volvo CE’s machines are totally a perfect balance between being fun
outstanding, not least when it comes to and credible. Dolph Lundgren is also a
safety and driver comfort. I really hope perfect fit for our company: Swedish,
this film will make more people aware strong, intelligent and with a global
of us and what we do.” impact.”
PUMP IT UP
PUMPING IRON
HOW DOLPH KEEPS THE MACHINES IN SHAPE
All stunts
were carried out
by professionals
in a controlled
area.
EXERCISE 1 1
CONCRETE HELL
“In this scene, one of our largest excavators can be seen
pulling a 10-tonne block of concrete with Dolph on top.
“Every day, Volvo CE’s excavators are really put to the
test on construction sites worldwide. This calls for strength, 2
stamina and skilled drivers.
“This challenge is designed to demonstrate the enormous
power our large excavators have. With a Volvo D16 engine
in combination with Volvo CE’s hydraulic pumps, they can
handle virtually any challenge. According to the operator who
drove the machine, he could hardly feel the weight of the
block,” says Per Åkerlund, Project Manager.
1 EXERCISE 2
MUD ROLLIN’
“The tyres used in this challenge weighed between two and three tonnes.
Flipping them requires huge precision, as the edge of the bucket has to
be directly under the tyres.
“With the hydraulic system Volvo CE uses in these machines, this was
2
no problem. In fact, with an excavator like this, you can almost crack an
egg without breaking the yolk!
“As a stunt, this was perhaps not a huge challenge, but, in combination
with clay and water, it gives you a great feeling after a challenging day at
work,” says Per Åkerlund.
EXERCISE 3
PULL-UPS
“This is the most spectacular stunt in the large machines. This challenge
the film. Our skilled instructors had demonstrates how much strength this
to adapt the machine to some extent. small machine has. The bucket, boom
Among other things, they replaced a and arm is supporting the entire weight
combustion engine with an electric of the excavator,” says Per Åkerlund.
motor and the arm cylinders were
replaced by a boom cylinder.
“To enable the machine to grip
the girder, they also cut a circle out 1 2
of the bucket. For safety reasons,
the machine was fixed with chains
to a crane. It was not used to lift the
excavator, but, if something happened,
the crane would catch it.
“The machine hanging from the
girder weighs 2.5 tonnes and is one of
our smallest compact excavators. It’s
also one of the smoothest excavators,
but perhaps it isn’t as impressive as
looking back STORIES FROM THE ARCHIVE
‘Built like a Mack’

P R O D U C E D B E T W E E N 1953 and 1966, Mack versatile and easily adaptable to many different
Trucks’ B Series remains one of its most successful applications.
heavy truck ranges in its history. Its combination However, the longest lasting legacy of the B
of power, reliability and fuel economy set new Series is the motto from its promotional campaign:
standards in the US trucking industry. Externally, ‘Built like a Mack’. The slogan is still used on Mack
its distinctive rounded cab stood in stark contrast Trucks’ T-shirts and memorabilia and it has even
to the box-like designs of other models. become a common expression in the American
The B-Series covered a broad range of weight lexicon, to describe something that is highly robust
classes and powertrains, which made it incredibly and reliable.
TAG
S ERLVIIN
CEE M A R K E T E X C EL L EN C E
The Atsugi Customer Centre is located

strategically in the Tokyo area, near the
busy Tomei Expressway, the Metropolitan
Inter-city Expressway and the Odawara-
Atsugi Road pass.
AT YOUR
SERVICE
In Japan, the average lifespan of a truck
is longer than in most markets. For UD
Trucks, this means that excellent
service is key to business success.
TEXT B O B B IE VAN DE R L IST PHOTO SAID KARL SSO N
S ER V I C E M A R K E T E X C EL L EN C E
I
t is early in the morning when around 40
workers line up in front of UD Trucks’
Atsugi Customer Centre. It is time
for their morning gymnastics. Service
technicians in overalls and office workers
in formal attire start stretching their
arms. Among them is Nobuyuki Otsubo,
manager of the Atsugi workshop.
“I’m a big supporter of our morning ritual. It
prevents workers from getting seriously injured
during the physical work,” he says.
The Atsugi Customer Centre is located in
Kanagawa Prefecture, one hour south of Japan’s
capital, Tokyo. It is one of UD Trucks’ 133 fully-
owned workshops, specialising in the service
market. When it comes to the Japanese truck
market, there is one thing that really stands out.
“In Japan, the average lifespan of a truck is
fourteen years,” says Nobuyuki Otsubo.
That is a lot longer compared with many other
regions in the world. Why is that? Well, Japanese
roads are well-kept, trucks are inspected annually,
“In Japan, the average lifespan

of a truck is fourteen years.”
N O B U Y U K I O T S U B O , M A N A G E R , AT S U G I C U S T O M E R C E N T R E
Morning gymnastics is an everyday routine for the service technicians In 2017, the Atsugi Customer Centre underwent a renovation, to better
and office workers at the Atsugi Customer Centre. cater to its customers’ changing needs.
The Atsugi Customer Centre
lies one hour south of Tokyo,
it was established in 1965 and
currently employs 43 people.
the highways are urbanised and assignments 78 per cent of the Atsugi
typically cover shorter distances with lighter UD TRUCKS workshop’s customers are
loads. Then there is the fact that a European Established in 1935.
regular clients from the local
medium-duty truck is the equivalent of a 6,210 employees. area, so building relationships
Japanese heavy-duty truck. Development, is a part of the job.
manufacture
and sales of
“In 2010, the market
W H E N O W N E R S K E E P their trucks longer, commercial vehicles, for trucks changed. At the
the importance of the service offer increases. manufacturing and time, there was a shift from
Another factor that affects the demand for sales of vehicle Noboyuki Otsubo medium-duty vehicles to
components,
service is legislation. Japanese law requires that maintenance of heavy-duty trucks. As a
every truck – regardless of brand, age or model trucks and buses, member of the Volvo Group, UD Trucks decided
– has to undergo a yearly routine inspection and related parts to focus on larger trucks, mainly in the cargo
sales.
called “Shaken”. Combined with the fact that UD industry. To be up to date with the regulations
Trucks owns 80 per cent of its service network, for heavy-duty trucks, we decided to renovate our
this means that the service market plays a large facilities in 2017,” says Nobuyuki Otsubo.
role in the financial results of the company. When talking to the people working at the
“A visit to UD Trucks got me received many job offers. In the end, he chose the
Atsugi Customer Centre.
interested in commercial vehicles.” “Originally, I was interested in passenger cars,
but a visit to UD Trucks got me interested in
ISAMU OTSUK A, SERVICE T ECHNICIAN commercial vehicles,” says Isamu Otsuka. “I like
the combination of old-school repairing and
working with state-of-the-art computers and
Atsugi Customer Centre, one sentence keeps software to find defects.”
emerging: sales sell the first truck, but service The shortage of service technicians is one
ensure the second sale. It makes sense in a market of the greatest challenges facing the Japanese
where truck owners hold on to their trucks for truck market. Fortunately, UD Trucks has
longer. The first owner is very often the sole owner. several initiatives to address the matter, ranging
Having a skilled team of service technicians is vital.
O N E O F T H E younger service technicians,

Isamu Otsuka, stresses the importance of good
relationships with customers. However, the work The Star Program
is challenging. To improve service UD Trucks deploys the
“Clients who work in cargo are not always “Star Program”. It essentially means that
patient. We need to help them quickly, as they customer centres can be awarded with up
are under huge pressure to get back on the road. to three stars, based on the quality of their
So communication is very important,” says Isamu operations, customer satisfaction and level of
Otsuka. execution.
Finishing school four years ago, Isamu Otsuka
“I like the combination of

old-school repairing and
working with state-of-the-
art computers,” says Isamu
Otsuka, service technician.
from certification programmes to international
internships.
“We have three foreign technical interns
and their work ethic is superb,” says Nobuyuki
Otsubo.
To attract new employees and improve labour
conditions at the Atsugi facility, working hours have
been changed and employees have more days off.
“Work-life balance is becoming more and
more important. Thanks to the changes, the
motivation has improved, which is reflected in
our productivity and sales,” he says.
One of the Atsugi Customer Centre’s main
clients is Akatsuki Transportation, a transporter
of carton boxes. With a sum total of 100 trucks,
service and uptime are key to their operations.
W I T H C H A N G I N G T E C H N O LO GY and growing
potential to fix defects using state-of-the-art
computers and technology, it is becoming more
and more difficult for drivers to understand what
is wrong with their trucks.
“When it comes to our relationship with UD
Trucks, the quality of service is crucial,” says Mari
Wada, President of Akatsuki Transportation.
Just as UD Trucks is facing a shortage of
service technicians, Akatsuki Transportation A major challenge facing the
is facing a lack of drivers. This is a matter that Japanese truck market is the
affects both ends: the companies that run the lack of service technicians. To
counter this, UD Trucks has
trucks, and the ones that maintain them.
launched several initiatives.
“Finding enough capable drivers to man the
100 units we have for transporting the carton
boxes is very difficult. We are all responsible for
promoting the great profession of truck drivers.
We need to work together to accomplish this.”
UD Trucks employs over 1,700 service technicians. The plan is to hire Mari Wada, president of Akatsuki Transportation, represents one of the
even more in the near future. Atsugi Customer Centre’s main clients.
Turning service
into sales
In a truck market where service is imperative, attracting Today, UD Trucks
the best service technicians is a long-term investment. employs more
than 1,700 service
TEXT J I M M Y H Å KA N S SON technicians, but
that is nowhere
“JA PA N I S V E RY relationship new sales. near enough to
driven. If you can’t deliver a good “Since the meet demand.
service experience and keep the customers have Martin Jerresand
quality of your truck, you will lose this high-quality Annerie Van Wyk estimates that
your customers, which is true in all focus and require only 40 per cent
markets but even more so in Japan,” certification every of the UD Trucks currently in use
says Martin Jerresand, Vice President year, trucks keep come to them for service. As he puts
Uptime and Retail UD Trucks. being maintained it, the maths is simple: “If we have the
When comparing the Japanese Martin Jerresand and can run for service technicians, our business will
market with other markets, Martin longer without grow”.
Jerresand identifies two main breaking down. More than half the
differences. The first one is the trucks coming to our customer centres, A N N E R I E VA N W Y K , Director Retail
legislation. are over 11 years old. In Europe, you Development at UD Trucks, is
“Every truck on the streets needs to do not typically see a truck after it working whole-heartedly to find and
undergo a yearly inspection that takes reaches 11 years.” further develop the right people for
16 hours to perform.” the job.
The other difference is the customer T H E R E I S N O shortage in the demand “Firstly, we have strong relationships
demand for quality service. This entails for service in Japan. There is, however, with several vocational schools in
longer-lasting trucks, which impacts a shortage of service technicians. Japan and work closely with them to
identify and recruit new graduates
every year. Secondly, we promote
UD Trucks as a employer of choice
through various external channels,
attracting what are referred to as mid-
career service technicians. Thirdly, we
have embarked on a very ambitious
technical internship programme for
foreign service technicians, which is
proving to be very successful,” she says.
The initiatives appear to be working.
The number of service technicians
employed by the company is rising,
and by 2020 they aim to have more
than 2,300. For Martin Jerresand,
there is no question that they are on
the right track.
“The service market always needs
to happen. Customers can decide not
to buy trucks during a downturn, but
they cannot decide not to maintain
“More than half the trucks coming to our customer centres, are over 11 years old,“ says Martin them. As long as they need to use
Jerresand, Vice President Uptime and Retail UD Trucks. trucks, we will be needed,” he says.
B I G DATA
Using the power of big data, artificial intelligence and

algorithms, a small team at Volvo CE has developed a
system that delivers market forecasts with a high level of
accuracy, while consuming less time and fewer resources.
TEXT NIC TOWNSEND PHOTO SANDE R DE W IL DE & VO LVO C E
THINKING
B I G DATA
Albert Thome,
Director Global
S&OP Development,
Volvo CE, and
Marie-Helene
Dumail, Director,
Market Intelligence.
T
H E A B I L I T Y T O foresee and regional and global levels,” explains Marie-Helene
anticipate market changes is Dumail, Director, Market Intelligence, Volvo
fundamental to any business. CE. “For production and volume planning, we
Quite simply, the better one can need to look up to 18 months ahead, but for
predict what will happen, the many dealerships, their focus needs to be more
better one can prepare. However, short term and this affects the credibility of our
for a global entity like Volvo forecasts.”
CE, with multiple product lines, this can be a Furthermore, the monthly process takes time
complex and time-consuming process. from a dealership’s core business – namely
“Traditionally, we have a bottom-up approach, serving customers.
where we question dealerships on their Nearly three years ago, a small team at
expectations and then systematically aggregate Volvo CE was set up to see how big data, AI
these responses so that we have estimates for and algorithms could be used to develop a
40 V O LV O G R O U P M A G A Z I N E . 2 0 1 9
“From day one, the accuracy from
the statistical model has built
credibility and challenged the
commercial channels.”
M A R I E - H E L E N E D U M A I L , D I R E C T O R , M A R K E T I N T E L L I G E N C E , V O LV O C E
In the first six months after its launch, the new

GLOSSARY statistical model has regularly proven to be more
ig Data is the term used
B
accurate than the current bottom-up TMF (Total
to describe exceedingly vast Market Forecast).
volumes of data that are too At a global level, the accuracy is around 90 per
large to be processed by
cent each month, as opposed to just under 85 per
traditional methods. However, if
analysed computationally, these cent using the traditional model. When excluding
data sets can reveal important China (a particularly volatile market), accuracy
patterns, trends, behaviours and is around 95 per cent – close to the world-class
insights.
standard and within Volvo CE’s objective of 95-
I (Artificial intelligence) is
A
when a computer or machine
105 per cent accuracy.
is able to replicate the natural
intelligence found in humans “ I F W E CA N be more accurate with our
and animals and has the ability
forecasts, then this will help us better plan our
to perform cognitive functions
such as thinking, learning and supply chain, sales organisation, sales volumes,
problem-solving. inventories and capacity planning, and reduce
achine learning is a form
M working capital,” says Albert Thome, Director
of AI, where a computer Global S&OP Development, Volvo CE. “Even
system has the ability to learn
autonomously and self-improve
just a few percentage points in improved accuracy
over time, without being can make a big difference to our profitability and,
explicitly programmed. even more importantly, it helps us better serve
lgorithms are processes and
A our customers.”
step-by-step instructions for
The TMSF model will continue to be
systematically solving problems.
They are a key component in any monitored and compared with the TMF standard
computer programme. over the coming months, which will provide
further insight into its accuracy, particularly for
long-term predictions. However, another key
benefit of the statistical model is its ability to
simpler, easier and more accurate process. They use machine learning to fine-tune and improve
subsequently developed the TMSF (Total Market its accuracy further. “Through self-learning
Statistical Forecast) model, which combines data techniques, forecasting algorithms are being
from Volvo CE’s own market statistics, with data refined month by month. Along with the
from Oxford Economics on macro-economic implemented continuous improvement approach
trends and data from IHS Markit on construction supported by business analysts, this should
spending. guarantee the best forecasting model possible,”
explains Albert Thome.
T H E M O D E L T H E N uses AI and defined “It is fascinating to see the potential for this
algorithms to analyse the data and calculate disruptive technology within Volvo CE. The
forecasts for total market sales. Based on Volvo Statistical Forecast is our small contribution to
CE’s market share, it then calculates the likely building the world we want to live in,” conclude
deliveries in each market for each product line. Marie-Helene Dumail and Albert Thome.
V O LV O G R O U P M A G A Z I N E . 2 0 1 9 41
FAC T S & F I G U R E S
Mining 3V
To understand the term “big data”,
the experts often talk about the “3Vs”.
for gold
The first V stands for Volume, the amount of data.
The second is Velocity, the speed
at which the data are created.
The third is Variety: data can arrive
in big data
in different formats.
… and another 2Vs

In recent years, another 2Vs have been added.
Big data is exactly what it sounds like: enormous V for Veracity: not all data are reliable.
volumes of information. However, the information Plus V for Value: the actual value of the data.
in itself is no more valuable than a gold mine
VARIETY
without a pickaxe. So Volvo Group IT is working
VALUE
to develop tools to help users find the nuggets of
gold in the flow of information.
VELOCITY
VERACITY
VALUE
J I M M Y H Å KA N S SON
VOLUME
TEXT
VARIETY
W I T H O U T A C O N C R E T E analysis tool, big data is just data. It is
instead the method that is used to analyse and identify patterns in
VOLUME
these data that creates business value. The Volvo Group has been
working on big data since 2015, by gathering large volumes of
VELOCITY
VERACITY
information from vehicles, together with statistics from dealers and
service workshops, for example. With this as the basis, the Volvo
Group is able to draw important conclusions.
2 500 000 000 000 000 000 000 000 000 000
The number of bytes of data that are created every day throughout the world (at the moment)
75%
Percentage of Volvo Group’s
The percentage of the global population
which uses the internet
50
48%
2013
trucks that are equipped 40 The year the Oxford
with data-collecting sensors. English Dictionary
added the term “big
30 data”. It had, however,
30%
1.5
already been used in
20 an essay by Michael
Cox and David
10 16% Ellsworth back in

1997.
The number of terabytes that
reach Volvo Group IT’s big
data bank every month 2005 2010 2017
Sources: Forbes, Wikipedia
Big data in day-to-day use
EVIK
M I L L A DY N
Data-smart
TV series
PHOTO: CA
When Netflix decided to
produce the TV series House
of Cards, their customer
data told them that the same
viewers who liked the actor
Kevin Spacey also liked the
director David Fincher and
political thrillers. So they H EL L O. . .
worked out that House of
Cards, which combined all … Jina Wollinger, Delivery Manager,
these elements, would be
Volvo Group IT
a hit.
How is Volvo Group IT working on big
data?
“We are developing capabilities that
support ‘advanced analytics’ projects for
Personal the entire Volvo Group. Advanced analytics
advertising means creating business insight by studying
patterns that are hidden in gigantic data
Facebook’s advertising volumes. Using these patterns, it’s possible
system analyses your data, to develop ‘predictive analysis’ – in other
the sites you visit and the words, predict the future. In this way, Volvo
products you have searched Group IT is contributing to more efficient
for. Using this as the basis, business and new opportunities.”
it is able to present targeted
advertisements in your flow, How can you see patterns in all the data?
displaying the products in “Patterns are usually hidden in different
which you have shown an data formats. Managing large data volumes
interest. and different formats is complex and
requires new technologies. LEAD2020,
one of the Volvo Group’s six strategic
IT priorities, includes the Lake Superior
project, which is aiming to create a technical
Shorter platform that will enable work on big data
attraction queues
P H O T O : F R E EST O C K S .O R G , T I M B E N N E T, ST E A M FA N
and advanced analytics.”
At Disney World, visitors can Why is this important?

be given digital armbands “In today’s digital reality, we have to
that collect data on where compete in completely different ways.
they have been and the By collecting the right information about
rides they have taken and vehicles, components, customer behaviour
then make suggestions and so on, we can adapt more easily to the
for similar attractions with new requirements that are imposed on us
shorter queues. This system and our products. Advanced analytics makes
gives customers tips, while it easier to streamline our operations, find
facilitating the amusement new business opportunities and obtain basic
park’s logistics. documentation for improved products and
services. If we are not at the cutting edge,
someone else will be.”
TAG L I N E
GAME OF TR ADE
Predicting
the future
What will shape the jobs we do, the industry
we are part of and, ultimately, the world we live in?
Nobody can know for sure, but it is part of
Anders Petersson’s job to take a shot at it.
TEXT TOBIA S WILHE L M PHOTO SANNA TE DE B O RG
I
N T H E V O LV O Group, megatrends and of decades. These are facts that you can’t get
movements are continuously monitored around,” says Anders Petersson.
in many areas and across business entities. Anders Petersson knows that predicting the
One example is the PESTEL report*, future is a bold task: in 1968, some of the world’s
which is compiled by a cross-functional leading futurists, including several Nobel Prize
team on a regular basis. The PESTEL laureates, created a report called “Towards 2018”.
report is a business-neutral, high-level Among other things, they predicted
trend and driver report that is applicable at all man-controlled tornadoes and aircraft that could
units in the Volvo Group. The purpose of the fly at Mach 25. All in all, technological advances
report is to create awareness and dialogue, as well were exaggerated and social development was
as inspiring strategic planning. The current version downplayed in the scientists’ predictions, as
includes both current trends and factors that will nothing was said about the fall of the USSR and
change until the year 2040. very little on the development of liberalism and
Anders Petersson, Director Transport Industry equality.
at the Volvo Group, is part of the team that “It is hard to talk about the future and be dead
creates the report and specialises in political and certain. The more I do this, the more humble I
economic development: become,” says Anders Petersson.
“Sometimes, I feel like my job is to go around
and deliver ‘doom and gloom’ messages. But a
fundamental insight is that the world has really
become a lot better place in the last couple * PESTEL is an acronym for Political, Economic, Social,
Technology, Environmental and Legal drivers.
6 THEMES OF
THE PESTEL 2040+
POLITICAL TECHNOLOGY
Main movements include a return The main drivers are electrification

to geo politics and climate-driven and electromobility, as well as
politics. Recently, there has been digitalisation and automation.
a shift in the political tone from Recent developments include
diplomacy to arms race. electromobility not emerging
any more, but already taking
place. Concepts like “systems
of systems” and “quantum
ECONOMIC computers”have emerged and
need to be reckoned with.
Good global growth but signs
of a slowdon around the corner.
A driver that is very much
connected to the development of ENVIRONMENT
the other themes.
Climate-driven politics is a
major driver, as well as de-
carbonisation and problems
SOCIAL with air quality. Recently,
attention on emissions is
Major drivers are the growing increasing and China is
global population, an increasing expected to take the lead in
middle class and the sharing emission reductions.
economy. Important recent
movements include the transition
from social media “hype” to
a realisation of the potential LEGAL
drawbacks of social media. Also,
Major drivers of development
new concepts like “fake news”
include compliance and trade,
and “on-demand knowledge”
as well as data protection and
have emerged.
liability. Recently, increased
tensions can be seen in trade and
China is striving to take a leading
global role.
Stay updated!
Listen to the GTT Business
Intelligence Pod with Anders
Petersson via the Volvo Group AR
Read more on how the
Stories app (English only). You can
Volvo Group navigates
also find it on the intranet.
change in trade on the
following page.
GAME OF TR ADE
TRADE MEASURES
rade barriers are all the measures implemented
T
by different authorities that facilitate or obstruct
trade in different goods and services.
here are two different types of trade barrier:
T
tariff barriers and non-tariff barriers.
ariff barriers relate to customs duties and other
T
charges. They are transparent and are regulated
by the World Trade Organisation (WTO).
on-tariff barriers can range from subsidies and
N
The Trade Navigation Team, with
campaigns encouraging citizens to purchase
Stefan Karlsson, Anders Ekblad,
Katarina Colliander and Jennifer domestic products to different certifications and
Varney, making a quick check complicated bureaucracies.
prior to a presentation. The team
is part of GTO, but it works for ree-trade agreements facilitate trade between
F
the whole Volvo Group. all parties involved.
Safe navigation in
stormy conditions
Brexit, the USA’s steel tariffs and the trade war with
China. These are just some of the many trade barriers
that are impacting global companies. The Trade
Navigation Team has been tasked with ensuring that
the Volvo Group stays one step ahead.
TEXT LINDA SWANB E RG PHOTO SANNA TE DE B O RG
“WE ARE LIVING in an increasingly complex free-trade agreement between Mexico, the USA
world. If we are to be competitive, we cannot and Canada.
simply follow developments, we have to work “They did a great job! By collaborating on many
proactively and be flexible,” says Katarina different levels, they succeeded in influencing
Colliander, Senior Business & Trade Navigator, the content of the agreement in a way that was
Trade Navigation Team. good for the Volvo Group,” says Jennifer Varney,
One of the team’s tasks is to collate the Volvo Senior Business & Trade Navigator, Trade
Group’s work on trade barriers. Every month, the Navigation Team.
Trade Navigation Team holds a global meeting Over the past year, interest has also focused
for its network, where participants describe what increasingly on the UK’s exit from the EU and the
is happening and how it could impact the Volvo way a hard or a soft Brexit is going to impact the
Group’s operations. This information is then Volvo Group.
passed on to various management teams and “There are an incredible number of questions,
other stakeholders. relating to the technical aspects of trade, the
Together with their colleagues in different parts economy and legislation, and we need to keep an
of the world, the Trade Navigation Team also eye on them. Our main task has been to collect
conducts studies and analyses the opportunities all the relevant information for analysis so that we
and risks various trade barriers can create. can prepare effectively,” says Katarina Colliander.
“We draw up recommendations for various
scenarios, which then form the basis of decisions I N T E R E ST I N T R A D E barriers and similar issues
on everything from investments in new projects has increased within the Volvo Group over the
and products to the choice of production past few years.
countries and suppliers,” explains Katarina “After all, trade barriers are closely linked to
Colliander. global politics and this is covered every day in
the news. It is something we all need to take an
T H I S I N F O R M AT I O N I S also decisive when interest in,” says Katarina Colliander.
it comes to discussions with authorities. For
example, the Volvo Group’s North America
Would you like to learn more about trade barriers?
Trade Barrier Governance Team played an On Violin, you can find links and information about
important role in negotiating the USMCA, the new different countries.
F L E X I B I L I T Y AG R EEM EN T
“This is the second day I have

worked at this station. We
sometimes rotate to learn new
things and see how different
stations function,” says Mikael
Younan, operator.
ALWAYS
ENOUGH
TIME
Economic fluctuations have an immediate impact on
the production rate at the Volvo Group’s plants. At the
plant in Skövde, Sweden, management and trade unions
have negotiated an agreement which will help safeguard
employment and retain skills if volumes decline.
TEXT J I M M Y H Å KA N SSON PHOTO ROBIN A RON
The plant in Skövde produces

engines and components that
are sent to Volvo Group plants
all over the world.
T
H E T O O L W H I R R S in Marie- a turbocharger and exhaust manifold on another
Louise Adolfsson’s hand as she 13-litre engine. He also recalls the recession.
fits the valve rocker arm shaft “Things moved so quickly. One week, we
on a 13-litre engine. Compared worked overtime and the next, we had nothing
with the complete engines to do. Entire departments simply came to a
a couple of hundred metres standstill,” he says.
away, this one looks bare. Like a In 2013, to prevent anything like this
skeleton. This is because Marie-Louise is working happening again, the management began
at the basic assembly at the GTO’s Skövde Plant, outlining a solution, together with the IF Metall
where engine blocks arrive from the foundry to trade union.
receive their interior fittings. “We wanted to reduce the number of
Marie-Louise Adolfsson has been working here redundancies, improve job security and safeguard
since 2004, but, when the recession hit in 2008, the income of our co-workers,” explains Lars Ask,
she was one of the people who were affected. chairman of IF Metall.
“The recession really punished assembly.
Everything declined and continued to decline. A F T E R T W O Y E A R S of discussions and
We had no idea how many people would have negotiations, they reached the flexibility
to leave. I was laid off and I was away for a year,” agreement that came into force in 2015.
she says. According to the agreement, every year, everyone
At the final assembly, Mathias Löfgren is fitting who works in IF Metall’s area of responsibility is
WHAT IS THE BEST THING ABOUT
THE FLEXIBILITY AGREEMENT?
Lennart Richardsson,
P L A N T M A N AG E R
“That we try to secure
our employees’ future.
This then impacts the
plant’s performance
when it comes to quality
and safety. We are
talking about highly
qualified work. It requires
training. Some of the
tasks take as much as
six months to learn. If
we invest everything in
that individual and he or she then leaves, we have to start again from
scratch. However, if we can retain our co-workers and their skills,
everyone benefits.”
How the flexibility

agreement works
allocated a certain number of hours linked to two All the production staff who work according to IF
different time banks: the short-term bank and the GTO Metall’s collective agreement are covered by the
business cycle volume bank POWERTRAIN flexibility agreement. According to the agreement,
There are 110 hours in the short-term bank Production in Skövde
co-workers have two time banks and, when
and they can be taken out in conjunction with Location: Skövde, necessary, they can be sent home with a full salary.
production disruptions. If a critical component Sweden The system is partly financed by an old bonus
fails to arrive in time or a machine breaks down, Founded in: 1868 system, while the rest is covered by the company.
Number of
the employer can send home the employees who employees: around SHORT-TERM BANK
are affected. As these hours are deducted from 3,300
Production: engines Every year, 110 hours can be utilised in connection
the short-term bank, the employees’ salaries are
and components with production disruptions. The hours in the
not affected. At the end of the year, the number
short-term bank are returned to their original level
of hours in the bank returns to the original total.
at the end of the year and the employer decides
“We have to understand that we are living in
when and how the hours are used.
a world where demand fluctuates. If we do this,
it’s easier for us to handle change,” says plant BUSINESS CYCLE VOLUME BANK
manager Lennart Richardsson. Every year, 42 hours are added and they can be
Finding a method that secures jobs, even used if there is a recession. Unlike the short-term
when the economy declines and volumes fall, bank, the number of hours in the business cycle
was equally important for the company and co- volume bank are not returned to zero, but the bank
workers alike. can contain a maximum of 330 hours.
WHAT IS THE BEST THING

ABOUT THE FLEXIBILITY
AGREEMENT?
Marie-Louise Adolfsson,
S A F E T Y R E P R ES E N TAT I V E A N D O P E R AT O R
“This agreement makes me feel far more secure. If production
is reduced again, we could perhaps avoid lay-offs and
cutbacks because of these hours. So far, we haven’t needed
to use the short-term bank, as the plant has been doing really
well. However, if I have to go home, it feels good to know that
these hours are there, so I don’t need to work to catch up.”
“It’s a question of survival for us. The products

we are currently producing will not be the same
as the ones we produce in the future. So we need
to increase our employability to match future
shifts in technology. By managing upturns and
downturns in a humane way, we can increase
engagement among our co-workers and retain
their skills,” explains Lennart Richardsson.
I F T H E S H O R T-T E R M bank is used in connection

with disruptions, the business cycle volume bank
will take the strain during the next downturn.
It ensures that co-workers like Marie-Louise
Adolfsson and Mathias Löfgren can feel secure
the next time the economic winds change
direction.
“The most important thing for us is that the
employees have accepted the agreement. When
“The most important thing for us is that the agreement has been accepted by the
we held a vote, 85 per cent voted in favour of the employees,” says Lars Ask, the IF Metall chairman, speaking about the flexibility
flexibility agreement, even if it meant that the agreement.
“We have to understand that we are living in a world where demand fluctuates. If we do this, it’s easier for us to handle change,” says plant manager
Lennart Richardsson. For the plant in Skövde, the flexibility agreement has meant that it can retain its co-workers and their skills.
old bonus system partly paid for the time banks,”

says Lars Ask. “We wanted to reduce the
As the flexibility agreement has been in
force since 2015, there has been time to put number of redundancies, improve
the theories into practice. Team leader Mathias
Löfgren remembers being sent home the job security and safeguard the
week after the summer holiday period due to
production disruptions. income of our co-workers.”
“We couldn’t get the material in or out, so we L A R S A S K , I F M E TA L L S K L U B B O R D F Ö R A N D E
had to go home – with full salaries,” he says.
As far as the plant in Skövde is concerned,
the flexibility agreement has had a number of
positive effects. The plant has, for example,
reduced the number of personnel from staffing
agencies. Instead, several hundred new co-workers
have been taken on as permanent employees, WHAT IS THE GLOBAL
some from staffing agencies. PERSPECTIVE?
AT T H E BA S I C assembly, Marie-Louise Adolfsson
has completed her part of the assembly process
Maria Rosenkrantz Sundemo,
and attaches an adapter plate to the engine, SVP HR, GTO
showing that the basic engine is ready for final “Nowadays, we
assembly. are all affected by
A great deal has happened since the recession events all over the
hit 10 years ago – for both the company and the world, both political
people who work there. and financial. So,
“It’s nice to know that these hours are available as a company, in
if something happens. I now have a family and collaboration with
children and so it’s even more important for me our trade-union
to have a secure job with a guaranteed salary,” she colleagues, we need to find new working methods
says, as an automated load carrier lifts the engine to make us less vulnerable when managing both
and leaves the basic assembly. upturns and downturns.”
N E W B U S I N E S S M O D EL S
Automation
put to work
Later this year, autonomous Volvo FH trucks will transport
limestone on a five-kilometre stretch at the Brønnøy Kalk
AS mine in Norway. The partnership represents Volvo
Trucks’ very first commercial autonomous solution and will
revolutionise productivity and safety at the mine.
TEXT A L A S TA I R M AC DUFF PHOTO ROBIN A RON
An autonomous Volvo FH
truck being road-tested at
the Brønnøy mine.
N E W B U S I N E S S M O D EL S
S
A S KO C U K L E V, D I R E C T O R
Autonomous Solutions at Volvo
Trucks, is excited. “This is a major
milestone for us.”
Initiated in 2016, the Brønnøy
project is at a pivotal stage, with
the four-year contract signed and
the trucks ready to create their own history in
mining operations.
The agreement follows recent successful Volvo
Trucks automation projects involving mining,
sugar cane harvesting and refuse collection. Yet
this autonomous solution is different. As well as
being the first commercial autonomous solution
that the company has provided, it heralds a
potentially crucial change in business model.
Rather than purchasing an autonomous truck,
Brønnøy are investing in a service – specifically
the transport of the limestone between two hubs.
“Undertaking this project was a strategic
choice. We’re making a deal,” says Sasko Cuklev.
“We have been successful with research and
technology but not yet with the commercial
implementation of selling these kinds of services.
There are still many unanswered questions and
that’s what inspires us to move forward.”
When autonomous operations are fully under Between mine and jaw crusher: autonomous trucks can
drive continuously, revolutionising productivity in the
way at the Brønnøy mine, the limestone will be
process.
transported by six or seven Volvo FH trucks on
the five kilometer stretch through two tunnels,
between the mine itself and the jaw crushers. The
autonomous trucks are controlled by the operator
of the wheel loader using a site management
system. “In many ways, we are entering
Tests have been carried out successfully and
the solution will become fully operational by end unchartered territory in setting
of 2019.
up this kind of contract and
T H E M A J O R C H A L L E N G E S involved in selling
this kind of ‘untried’ solution are readily business model.”
acknowledged by Sasko Cuklev. “Of course S A S K O C U K L E V , D I R E C T O R A U T O N O M O U S S O L U T I O N S AT V O LV O T R U C K S
there’s pressure to deliver what we have promised
– a robust, safer, reliable solution that meets
ambitious productivity targets. The commercial
aspect is also challenging. In many ways, we are
entering unchartered territory in setting up this Trucks to find a solution to streamline operations.
kind of contract and business model. It requires a As well as enabling the actual commercial
lot of trust from the customer.” transport solution, Volvo Trucks has also helped
The relationship between Volvo Trucks and Brønnøy to assess its own future potential. “Of
Brønnøy Kalk AS has involved much open and course we can measure costs such as autonomous
positive dialogue to get to this stage. Originally a hardware,” says Sasko Cuklev. “Yet you cannot put
Volvo CE customer, Volvo CE turned to Volvo a value on the increase in optimised flow, better
”This is our first commercial autonomous solution where we will run in real operation
with the aim to sell a transport service”, says Sasko Cuklev, Director Autonomous
Solutions at Volvo Trucks. Here with Martin Ryd, CPM, Raymond Langfjord, Managing
Director Brønnøy Kalk AS and Roberson Assis de Oliveira, Technical PM, at one of the
tests at the mine in Norway.
at Volvo Trucks, the work has also involved GTT,

CPAC, Legal, Communications, et cetera, at
various stages.
“The strengths of these different elements of
the organisation have pulled together to deliver
a transport solution that is set to revolutionise
productivity in an industry where competition is
New technology and digital solutions are vital in an industry
where competition is tough. tough,” says Martin Ryd, Chief Project Manager.
LO O K I N G F O R WA R D, S A S KO Cuklev believes
that the kind of hub-to-hub service at Brønnøy
can play a major part in Volvo Trucks’ continued
flexibility or improved precision. These benefits commercial success. “In the future, I believe that
will only become quantifiable in the future.” we will tailor each solution for each individual
As well as highlighting the positive partnership customer according to what they need. We must
with the customer, the project has also be better at selling solutions and, by driving
demonstrated the importance of good cross- commercial pilots, we are learning by doing,
functional communication within the Volvo getting insights and then moving forward. It is a
Group. Driven upfront by the automation team very exciting process.”
U S ED T R U C K S
Pointing in the
right direction
Used trucks are an important part of Volvo Trucks’ Trucks to capture market share from other
brands, we have to trade-in and sell their used
business model. Arrow Truck Sales Europe is testing vehicles too,” explains Andreas Gustafsson,
new ways of capturing a larger share of the market. Managing Director of Arrow Truck Sales Europe
and the person who conducted the analysis for
I
TEXT L I N DA S WA N B E RG PHOTO MA RIUS BAUER
Volvo Trucks.
paved yard in Ludwigsfelde,

N A R E C E N T LY O F T H E 1 2 , 0 0 0 used trucks Volvo Trucks buys
just south of Berlin, trucks from Volvo, ARROW TRUCK and sells in Europe every year, about half are sold
Renault and Scania are neatly lined up, SALES directly to end users by local dealers and market
waiting for new owners. In a grey two-storey Arrow Truck Sales companies. The rest are sold to independent
building close by, the ten people who make GmbH in Germany, dealers who then sell them to others.
up Arrow Truck Sales Europe have been was established in “This often means that we give away our
2018. The company
working since September. shares the brand
margins, customer relationships and the potential
This new venture is based on a detailed with Arrow Truck to sell financing. Arrow Truck Sales is one way of
analysis of the used truck market and the role it Sales, Inc, a leader recapturing parts of the business,” says Andreas
plays for Volvo Trucks in Europe. in trading used Gustafsson.
trucks in the USA
“If we are to sell new trucks at a high price, and owned by Volvo Arrow Truck Sales is owned by the Volvo
used trucks also need to have high value. As Group Holding North Group, but it is run like an independent truck
customers are demanding increasingly flexible America. dealership. Andreas Gustafsson and his team
forms of ownership, this will probably be even choose the trucks they want to purchase and the
more important for us in the future. For Volvo vendors.
Andreas Gustafsson is the Managing Director of Arrow Truck Sales Europe. Daniela Panneck works for VFS, Volvo Financial Services. She has a full-time
job running and developing the customer financing offer Arrow Truck Sales Europe has via the local VFS companies on customers’ domestic markets.
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Arrow Truck Sales Europe has a strategic location

just south of Berlin, close to important transport
routes, the airport and the Volvo Trucks Center in
Wildau. Even if most potential customers are in
Eastern Europe, it is an advantage to be based in a
country like Germany. “Many customers regard this
as a stamp of quality,” says Andreas Gustafsson.
U S ED T R U C K S
“The lead time for purchasing a new truck

can sometimes be many months. From us,
you can source a truck on the same day.”
A N D R E A S G U S TA F S S O N , M A N A G I N G D I R E C T O R , A R R O W T R U C K S A L E S E U R O P E
“We are completely free to buy any truck we

like if we believe it will make us money. Volvo
Trucks’ dealers are naturally an important source,
but, over time, I think we will buy about half our
trucks on the open market,” he says.
A R R O W T R U C K S A L E S sold its first truck, with

financing from VFS, at the beginning of October
last year – to a Finnish haulage company.
“Our typical customers are small haulage
companies in Eastern Europe. For them, each
truck is a large investment and they try to find
the lowest possible price. However, another
customer could be a medium-sized company
that needs a truck quickly. The lead time for
purchasing a new truck can sometimes be many
Arrow Truck Sales Europe is operating in a knowledge-intensive
months. From us, you can source a truck on the industry. Carlos de la Cruz is a purchaser and he has many years’
same day. By collaborating with VFS, we are also experience of trading in used trucks.
able to offer pan-European customer financing
and this gives us a competitive advantage about
which we are extremely optimistic.”
A digital presence is another factor that
distinguishes selling used trucks from new.
Just like its competitors, Arrow Truck Sales
is investing heavily in developing and using
digital platforms. Even if it is still not possible to purchase a truck directly on the web, this is
where the vast majority of deals begin.
“We are focusing a great deal of attention
on newsletters and sending offers directly to
customers. We have actually sold some trucks
before they even arrive in the yard,” says Andreas
Gustafsson.
BY T H E E N D of 2018, Arrow Truck Sales Europe

had sold some 30 trucks. In the long term plan
this would have been a not too unusual weekly
volume.
“Buying and selling a truck isn’t difficult, nor is
selling 20 a week from time to time. But making
this a permanent feature, while creating processes
and developing business isn’t that easy. As we
As digital marketing manager, Gisela Des plays a key role.
Among other things, she is responsible for developing the started from scratch, this is a huge challenge, but
company’s digital platform and social channels. it’s also great fun,” says Andreas Gustafsson.
A used truck has just arrived
to Arrow Truck Sales Europe
in Berlin. Marco Paoli, Sales
Representative, and Mikko
Nevala, Purchasing and
Sales Director, take a look at
the paperwork.
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New uses for used trucks

I N C R E A S I N G T H E R E SA L E value of used the cab, drive chain and suspension, so
trucks is a challenge faced by every truck that the existing rails can be replaced by
brand and one way of doing this is to expand new rails with a customised wheelbase.
the potential marketplace. This is the idea This guarantees vehicle robustness and
behind Renault Trucks’ Used Trucks Factory suitability for any type of body and purpose.
concept, where used trucks are adapted for The industrial manufacturing process
new applications and markets. and quality control comply with the same
The latest example is the T P-Road models, demanding standards as those applied
which are essentially Renault Trucks T tractors when manufacturing a new vehicle.
converted and customised into rigids. The T P-Road then undergoes the same
The conversion takes place at the strict quality control and systematic road
Used Trucks Factory workshop, located tests as new vehicles before delivery
at Volvo Group Trucks’ Bourg-en-Bresse to Renault Trucks’ dealerships and it is
manufacturing site. It involves first removing guaranteed for one year or 120,000 km.
insights UNDERSTANDING THE WORLD AROUND US
5
QUESTIONS ABOUT
SUSTAINABLE
URBANISATION
“We need to find new ways of planning
our cities,” says Professor Xuemei Bai.
She is a thought leader on urbanisation
and sustainability and winner of the
Volvo Environment Prize 2018.
Today, more people are living in cities When we say urban air pollution, we are
than in rural areas. By 2050, more than talking about totally different levels in
two thirds of the world’s population will Chinese and Australian cities. There are
live in urban areas. What will this lead to? surprising similarities, too. Australian cities
“This trend entails multifaceted are growing much faster than most of the
consequences. People will have very OECD countries and many of the challenges
different ways of living, different ways of facing them are similar to those in China.”
interacting with each other and with nature.
In many parts of the world, urban living What role does transportation play in
means better life through access to better this?
jobs, higher income, better education and “Low carbon, affordable, accessible,
infrastructure. In other parts, we are seeing and safe mobility are always at the centre
a rapid expansion of slum areas where of the idea of sustainable cities. Currently,
people live without proper housing or access transportation systems contribute a large
to basic services.” share of greenhouse gas emissions. Shared
and automated mobility, renewable cars
What must change if urbanisation and solar paved highways are some major
continues at this pace? innovations just around the corner. These
“Up to 90 per cent of all future have the potential to completely change
population growth will be added to cities urban structures and forms, the way cities
in developing countries. Equipping these function and urban living.”
cities with the same level of infrastructure
as cities in today’s developed countries will How can businesses help the transition?
use up about 30 per cent of the remaining “Many things can be done. Re-examining
carbon budget if we are to stay within the the supply chain from a sustainability
two-degree target. We need to explore perspective, using locally sourced materials
different ways of planning and building our when possible, improving energy and
cities.” resource efficiency in production, innovating
and adopting new product designs
You were born in China, have lived in that encourage circular economies and
Japan and are now an Australian citizen. reduce waste streams – these are just
How has this affected your views on some examples. It is also important that
cities and urbanisation? businesses take an active interest in their
“These experiences taught me firsthand host city and support researchers, policy-
the diversity in the drivers and processes makers, practitioners and the community to
of urbanisation and the complexity of help accelerate sustainability.”
the challenges different cities are facing. J I M M Y H Å K A N SS O N
P H O T O : T O R E M A R K LU N D
Xuemei Bai, Professor at the

Fenner School of Environment
and Society, Australian National
University, Canberra, Australia,
is the Volvo Environment Prize
Laureate for 2018.
PHOTO: ALINE MIER

The cross-functional team at Volvo Buses
in Mexico; Erika Galán, Lorena Callejas and
Gustavo Valdez, play Customer Success
Monopoly.
On the same board

Passenger complaints, driver mistakes and road accidents. our customers’ business that was as
true as possible and start to generate
By playing an educational game inspired by Monopoly, a consciousness around that,” says
employees at Volvo Buses in Mexico are learning about the Lorena Callejas, Customer Satisfaction
challenges their customers face in their daily work. Manager.
Now, Customer Success Monopoly
has been translated into English and
I N C U ST O M E R S U C C E SS Monopoly, Customer Success Monopoly. “Most shared with other regions and functions
Volvo Buses takes on the classic board employees working for Volvo Buses do within Volvo Buses.
game. Participants own a bus and not have direct contact with customers “People’s mindset has changed,
their objective is to have a profitable and therefore rarely visualise the increasing the sense of urgency,
business. They face many of the real impact of their work on the customer’s improving cross functional cooperation
situations that Volvo Buses’ customers business,” says Erika Galán, Field and empathy towards solving customer
experience every day, such as Solutions Coordinator, who designed problems. We will continue to use
breakdowns, accidents, stolen vehicles the game together with Lorena Callejas Customer Success Monopoly as part of
and driver mistakes. The participants and Gustavo Valdez at Volvo Buses in our culture tool,” says Gustavo Valdez,
must also pay taxes and operational Mexico. Services Manager.
expenses such as fuel and maintenance.
Since its launch in November 2016, I T STA R T E D W I T H a few pilots and
Do you want to learn more about Customer
more than 1,000 employees from Volvo was adjusted according to feedback. Success Monopoly? Send an email to
Buses in Mexico have participated in “We wanted to create a picture of [email protected]
This is your
future workplace
By mid-2019, all Volvo Group employees will be able to adopt new
tools and ways of working that will reshape their digital experience.
It is all part of the Intelligent Digital Workplace initiative.
W E L I V E I N A W O R L D where we struggle reusing others’ work with pride instead of

to make the most of our time, find the right reinventing in our own silos and engaging
information and work effectively with others. in active dialogue on social platforms,”
The purpose of Intelligent Digital Workplace explains Patrik Wallmoberg. “We will be
(IDW) is essentially to make it easier to able to tap into the enormous wealth of
work, collaborate and innovate at the Volvo knowledge within the company. We will
Group. have social tools to collaborate inside large
“There is a strong digitalisation wave projects, communities and across teams.
in all parts of society,” explains Patrik And for the first time, employees who work
Wallmoberg, Director, IDW. “Our industry, in production will be able to take part in
our company and our personal behaviours information flows, from local activities to
are changing rapidly. At home we corporate news. All of this will
are used to simple, intuitive and bring speed to our daily work,
user-friendly tools. With IDW we boost cross-functional teamwork,
aim to offer our employees a similar flexibility and empowerment.”
experience at work.”
Thanks to IDW, soon every Volvo T H E N E W D I G I TA L workplace uses
Group employee – regardless of machine-learning to personalise the
whether they work in an office, platform for each individual user.
plant or workshop – will have It will recommend content based
access to Violin, email, sharepoint, Patrik Wallmoberg on the user’s previous searches, as
documents, apps and Navigator well as suggest connections with
from one single start page. It will also be colleagues with similar interests or working
available on computers, smartphones and on similar projects.
tablets, giving employees greater flexibility The Intelligent Digital Workplace will be
to work anywhere, anytime. introduced gradually throughout 2019 and
“It’s about providing new technology will be available to all employees before the
but also encouraging new ways of end of the year.
working such as sharing our work openly, NIC TOWNSEND
Get better
at speaking
in public
Would you like to improve the
way you give presentations or
develop your leadership?
If so, Toastmasters could be
the answer. There are several
clubs with members from the
Volvo Group all over the world.
TEXT L I N DA S WA NBERG
Sonia Arnstein,
President of
W H E N S O N I A A R N ST E I N gave her first the Seafront
speech at a Toastmasters meeting five Toastmasters,
years ago, she was very nervous. shares her best tips
when it comes to
“My legs were shaking as I stood in front presentations.
of the audience. Since then, I have learnt
a lot and now I am much more self-
confident,” she says.
In addition to working at Global HR at
GTO, Sonia Arnstein is currently President
of the Seafront Toastmasters, one of
two clubs for Volvo Group employees Know your material
in Gothenburg. One morning every two 1 Make sure you know a lot about
weeks, the 22 members get together at the topic you are talking about and
the Volvo Museum, make presentations make yourself really familiar with the
and give one another feedback. material. Reinforce yor message with
Many of the members have facts and statistics. If someone else
Toastmasters as part of their personal has prepared the presentation for
development goals. you, you need to study the material
In addition to practising presentations and make it yours. Otherwise, you will
and speeches, Toastmasters gives the get lost and probably miss the point.
members the opportunity to prepare for
interviews, develop their leadership and
the art of giving feedback. Make it personal
“I think it can be beneficial for 2 Talk, do not read your
everyone, even if you don’t normally give presentation. Make sure you use your
presentations at work. For example, own words and give your speech a
imagine that you end up in the same personal touch. If the context and
PHOTO: SANNA TEDEBORG
elevator as Martin Lundstedt and he asks topic allow it, it is always good to
for your opinion on something. If you know use some humorous elements in a
how to structure a spontaneous speech, presentation. The more personal it is,
you can maximise those two minutes,” the easier it is to retain the attention
says Sonia Arnstein.  of the audience.
M A R C U S H Ö R B ER G
Practice makes permanent
3 Rehearse, rehearse, rehearse. If
Working to do
you have not rehearsed enough, you
will probably use a lot of filler words
like “um” and “ah”. To see and hear
how you are doing, it is a good idea
to record your presentation with a
something good
S
smartphone or other equipment. Or
ask a friend or your family to be your I N C E M Y E A R LY backpacking days I have been
audience. passionate about emerging markets. At university,
I dreamed of working for the UN, but I instead
ended up at the Volvo Group. Although I am
Time yourself not really a product or technical person, I am
4 When practising, time yourself to very happy to work in the exciting transport industry. One
ensure that you do not take more time of the things I have learned is that there is no contradiction
than you have for your presentation. between working for a company that makes money and
This is very important, especially for doing something good. Quite the reverse.
those of us working at a company like As I see it, our mission, driving prosperity through
the Volvo Group where we have a lot of transport solutions, does not simply mean producing
meetings. Make sure you have a good vehicles that offer high quality, safety and the least possible
structure and a time plan. impact on the environment. It is also a question of creating
value for our employees and society.
I am definitely not alone in wanting a greater purpose
Pace yourself and meaning in what I do. Everywhere I have worked –
5 People tend to rush when they Romania, Serbia, Morocco, Peru and now South Africa
are nervous. Practise making your – I have had great, professional colleagues who want to
speech at a calm, steady pace. contribute to a better society. I encourage them to come
up with win-win-win ideas that improve customer success,
contribute to society and grow Volvo’s business profitably.
Less is more
6 The main goal of visual aids is to H E R E I N S O U T H A F R I CA , we have a number of new
help the audience understand what is initiatives on the go – everything from getting local
being said and reinforce the points of designers to use waste material from our workshops to
a speech. Make sure you do not use training female truck drivers. The Iron Women training
too many slides and too much text in programme has already been tested with great success in
your PowerPoint presentations. Use Peru and it is one of the ventures of which I am most proud.
short sentences and bullet points, but In South Africa, more than 14,000 people are killed
never read them. Instead, use your own in traffic accidents every year. Statistics shows that
experience to explain what they mean. women are less involved in traffic accidents and with
this initiative we can contribute to safer roads and
at the same time support our customers’ success by
reducing repair costs and improving uptime.
TOASTMASTERS IN SHORT Unfortunately, South Africa has a high crime rate
and safe stops on the road is an issue for our Iron
Set up in the USA in 1924
Women. To find solutions to this, we have
Established in 145 countries
initiated discussions with the government.
Has some 360,000 members
Together, we can make the world a little
Volvo employees who are members of
better.
Toastmasters have their own community
on Violin: violin.volvogroup.net/sites/
communities/communication/toastmasters/
Sources: Sonia Arnstein, toastmasters.org MARCUS HÖRBERG, VICE PRESIDENT

V O LV O G R O U P S O U T H E R N A F R I C A
What would you do?
Are you up to date with the Volvo Group
Code of Conduct? Say how you should
act in the following three scenarios and
go into the draw to win a an EW160E
Lego Technic model.
1
You are at an airport and decide
I L LU ST R AT I O N : C O LO U R B O X
to use your work laptop before
boarding the plane. What should
you take into consideration?
A. Nothing in particular. You know
that your Volvo Group devices are
fully protected against any malicious
attempts to retrieve information.
B. You avoid using public networks
and make sure you do not work on
confidential or sensitive material in
public areas.
C. If you just avoid connecting to the
free airport wi-fi you can work offline
with a document including prices
and other sensitive information at the
crowded coffee shop.
2 3
In which ways can you work If your colleague is violating the
politically as an employee Code of Conduct, what should CODE OF CONDUCT IN SHORT
within the Volvo Group? you do? T
he Volvo Group Code of Conduct is a set
A. You can support any causes you like, A. You turn your head the other way of directives for how all employees globally
should do business. By behaving in the right
as long as you do not do it in the name and pretend you did not notice.
way, the Volvo Group builds trust both with
of the company, use company assets or B. You speak up – by contacting the customers and with society as a whole.
funding, or company time. relevant manager or department, It also helps the Volvo Group avoid situations
B. You cannot be politically active at all or by using the Volvo Group that might lead to adverse legal issues or
damage the company’s reputation.
as a Volvo Group employee. Whistleblower function available from
If you need to freshen up your knowledge
C. You can work politically if you think it www.volvogroup.com. about the Code of Conduct, go to Violin or talk
is in the Volvo Group’s interest. C. You send the colleague an to your manager.
anonymous note urging him/her to
stop.
Win a Lego Technic!

One lucky winner will get a an EW160E Lego Technic model. The LEGO excavator
Email your answers to [email protected] no later than model, developed
15 April, 2019. Write “Quiz” on the subject line and remember to in partnership with
Volvo Construction
include your name and address.
Equipment, is a
The winners of the quiz in Volvo Group Magazine #4 2018 were detailed replica of
Niklas Erlandson, Sweden, Adam Boyes, UK and Ann-Cathrin the Volvo EW160E.
Read more at
Olger, Sweden. www.merchandise.
The correct answer was 1928. volvogroup.com.

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PHOTO: ALINE MIER

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