May 24, 2013

Volvo Cars creates new joint function for purchasing and manufacturing

Volvo Car Group (Volvo Cars) will establish a new global purchasing and manufacturing function in order to reduce complexity and costs. The new organisation will also create more distinct governance, quality assurance and cost control throughout the entire
value chain. The new unit will be headed by Lars Wrebo, currently Senior Vice-President Manufacturing.

"This change is part of our efforts to reduce complexity. We need to strengthen the substantial processes within the company at the same time as we strive to reduce bureaucracy. Lars Wrebo will have a central and comprehensive role through this new function which will be a natural hub together with Research & Development and Product Strategy," said Hakan Samuelsson, President and CEO of Volvo Cars.

Hence the new function will be responsible for optimising the value chain, from supplier to manufactured car, through material planning, logistics and manufacturing.

"It will be even more vital in the future to view manufacturing at our suppliers as one part of the whole value chain. There is big potential in reducing waste by having a more integrated way of working," said Lars Wrebo.

In connection with this organisational change, Axel Maschka, Senior Vice-President Purchasing, will leave Volvo Cars.

"I would like to take this opportunity and thank Axel Maschka, who at the time of change has elected to leave Volvo Cars. Axel Maschka has been instrumental in building up a global Purchasing function and realized strategic improvements and savings. He has also initiated several important joint cooperation projects between Geely and Volvo," added Hakan Samuelsson.

The new unit will be operational as from July 1.


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