Volvo's "willingness"

Strategy determines the future.

For many companies, the premise is whether to have the courage to give up.

Until now, the Volvo sedan is still considered to be a brand with commercial value and consumer reputation. The sensation caused by Geely's purchase of Volvo's sedan business illustrates this point.

However, Volvo's CEO Leif Johansen decided to sell this business at the beginning of his 1998 appointment. It is not that the car business is not good, but it is not suitable for the Volvo Group.

If the sedan business and the commercial vehicle business develop together, it will not be able to form a concerted effort to check each other's development. How do you choose the future if the current performance of the sedan is good? That year, Volvo's sedan business was ranked 23rd in the world, and Volvo trucks were able to rank in the top 3.

Leif Johnson insisted that if Volvo wanted to become stronger, it must focus on the development of trucks, buses and other construction machinery businesses, and give up cars. When his decision was announced, an old employee ran outside the company crying. The entire Swedish media accused Leif Johansen of "selling the Swedish national image" because the Volvo sedan was seen as the crown jewel of the Swedish crown.

Since then, although the commercial vehicle business of B2B has been out of the public eye, it has been unable to suppress the business surge. At present, the annual sales volume of Volvo Group single-heavy trucks has reached more than 200,000 units, almost three times that of 10 years ago. Just like Rolls-Royce, Rolls Royce is widely known, but Rolls-Royce's aircraft engine company is 20 times the size of Rolls-Royce.

The strategic decision is the key to the Volvo Group's transformation. The global development of Volvo has the mark of many Swedish companies. People are always wondering why Sweden has produced many excellent multinational companies - Volvo, IKEA, Ericsson, Electrolux...

The birthplace of Volvo is a very small market. The total national population of Sweden is only 9.6 million, which is less than the total population of Beijing (the permanent population is about 17.55 million). Volvo has turned an unfavorable condition into a positive factor, and it is inevitable to expand in a limited market.

From the outset, Volvo's development emphasizes global vision and continuous access to resources.

After Volvo sold its sedan business to Ford Motors for US$6.5 billion, it used its funds to launch a series of commercial vehicle layouts around the world: In 2001, it acquired Renault Trucks and Mike Trucks, consolidating its position in the European and U.S. truck sector. It also established the Volvo brand; between 2006 and 2007, it also acquired Japanese truck manufacturer Nissan Diesel (later renamed Yody Truck). In China, the joint venture strategy was initiated because of the policy.

It can be seen that the Volvo Group's product line has become rich, including trucks, passenger cars, construction equipment, marine industrial engines, and aviation components. Volvo's management philosophy is categorized by product line, Volvo Trucks, Renault Trucks, Mike Trucks, Eudy Trucks, etc. These subsidiaries manage their own global operations. At the same time, let these branch companies share global resources. 25% of Volvo people are doing global resource sharing, which ensures the coordination of the entire group's strategy and production.

Jiang Yu, vice president of Volvo Group China, said that in fact there is no need to deliberately distinguish between Volvo Group and Volvo cars. Today's Volvo brand is more valuable than 10 years ago. Volvo Group's audience also has a deep understanding of the Volvo Group, and I think it should be satisfied.