Volvo, Mack merge under one corporate roof

GREENSBORO, N.C. — It was probably inevitable, but Volvo Group’s North American truck operations of Mack Trucks and Volvo Trucks North America will be merged into a single organization called North American Trucks (NAT).

The single company will be headed by Dennis Slagle, currently President of Mack Trucks.

In a press release, the Volvo Group said the move was made to improve profitability and efficiency of the group as well as more closely align goals across the North American operations, and "enhance the capability to rapidly implement approved decisions."

Per Carlsson, who currently serves as President of Volvo Trucks North America, will assume the position of Chief Operating Officer in the new organization and will report directly to Dennis Slagle.

At the same time, Volvo Powertrain and Volvo 3P in North America will be more closely linked to the North American organization through dual reporting of their North American leaders to Dennis Slagle and their global leadership, the company says.

To further enhance coordination, the other business units in North America will be more closely aligned to North American Trucks. The new organization will continue to operate two separate sales organizations and work with two separate and distinct brands.

"To achieve sustainable profitability at acceptable levels, we are now moving forward with the integration of our North American truck business,” says CEO Leif Johansson. "The new organization will speed decision-making and significantly improve the operational steering of sales and products, while allowing us to maintain our focus on global product platforms.”

The new management organization will be effective from November 1, 2009, and financial reporting will be based on the new structure as of January 1, 2010.  

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