Scania's Martin Lundstedt takes over the reins at Volvo

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Volvo Group Press Release / October 22, 2015

http://www.volvogroup.com/GROUP/GLOBAL/EN-GB/INVESTORS/CORPORATE_GOVERNANCE/CEO_GEM/Pages/MartinLundstedt.aspx

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[Lmackattack]

Is this good news for Mack?

[kscarbel2]

Is this good news for Mack?

Regarding the Mack brand, there's no where to go but up with Martin Lundstedt.

Unlike Persson, Martin is a career truck man. And he had the best environment in the business at Scania.

He has the full support of Volvo's board chairman to make major changes. He (Carl-Henric Svanberg) is extremely upset about Volvo's present situation, brought on by Persson's poor decisions. He cost Volvo a lot of money.

Volvo went downhill from the day Persson took over, and they now realize he was a mistake.

Having sold Volvo Aero, Volvo IT is nearly sold, and the now unprofitable Volvo Construction is on the table.

I hope (actually expect) to see management changes at Volvo Group Trucks Sales & Marketing Americas, because, particularly over the last 12 months, the morale of the Mack brand people at Volvo's Greensboro HQ is on the floor, and the dealers are frustrated.

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Volvo's new CEO

SvD Naringsliv / October 22, 2015

Thursday was Martin Lundstedt’s first day at AB Volvo and he speaks warmly of customer focus - not sales activities.

A new shiny red Volvo truck dominates the room at Volvo truck dealer on the outskirts of Gothenburg, Sweden.

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Martin Lundstedt chosen this location for his first press meeting.

It is just a few kilometers down the road from Volvo’s headquarters overlooking Gothenburg, but the distance seems like a trip to the moon. The symbolism of the truck workshop, after the corporate jet scandals of Industrivärden, which owns 22 percent of Volvo, could not be clearer.

Three meters from Lundstedt, truck mechanic Patrik Granberg is working on a truck engine in a white Volvo truck. He has worked 28 years at AB Volvo. Lundstedt three hours.

If you wake up in the middle of the night - what is the biggest challenge to achieving a profit increase?

- Continue to focus on the customers, it is always what ultimately provides a sound position, says Martin Lundstedt.

- Some would like to discuss a quick fix - structures and clearance sales, but it is about having a professional organization that serves customers. This leads to long-term profitability, he said.

You have margin of nearly 3 percent. What is your goal?

- I do not want to formulate a goal after being here just three hours. It would be bordering on frivolous.

For the new CEO, it all started last spring. Volvo's Board Chairman Carl-Henric Svanberg called him - when Lundstedt was still CEO of Scania. Svanberg asked if he wanted to be chief executive of the largest competitor. Just at that moment, Volkswagen had announced that it was forming a new business unit, Truck & Bus GmbH, to oversee both Scania and MAN. Under that new structurem Martin Lundstedt’s power would be trimmed.

What was first thought?

- I was overwhelmed. You always put your heart into what you do.

He becomes quiet.

- But I felt when the question came, that I was ready to have a discussion and take a next step.

They met at a hotel in Stockholm. Martin Lundstedt accepted the offer to become CEO at one of Sweden's largest companies with over 100 000 employees, including more than 20,000 in Sweden.

Lundstedt would now depart from Scania, a Swedish company focused exclusively on commercial trucks, and has an industry leading profit margin of over 10 percent.

He has a tough journey ahead of them to work up the profit margin at much more diverse Volvo, which today is just under 3 percent - and thus differs dramatically from Scania.

Since Volvo's car business was sold to Ford in 1999, sales increased from 100 to almost 300 billion through acquisitions. But then-CEO Leif Johansson never got out of the synergies he wanted.

Olof Persson, who became CEO in 2010, said he would cut 10 billion Kronor and eliminate 4,400 employees over the 2012-2016 periodm but profit increases have been slow in coming. In the end, Olof Persson was fired.

The press has increased since Carl-Henric Svanberg became Board Chairman and activist fund Cevian with Christer Gardell spearheaded increased its stake to almost 15 percent of the votes.

This week it became clear that Volvo IT operations will be sold. And it’s no secret that Christer Gardell firmly believes in spinning off more Volvo business units, mainly the problem child movers who account for a fifth of sales.

It is a company with many different businesses. To what do you see biggest challenge?

- It is not as sprawling as you might think. There are many similarities between the operations. The group is great - it must have respect for, there are different brands and slightly different logic for business between construction equipment and trucks - but above all there are many similarities.

Cevian with Christer Gardell at the head is a large shareholder which now has a representative on the board.

What is your relationship with Christer Gardell?

- I have met Christer and other representatives of Cevian. We have a great relationship.

Do you share his view of Volvo?

- I do not want to critique our shareholders. We will listen to all shareholders, large and small.

Lundstedt’s personality is warm and spontaneous. He speaks with the fast western Swedish Skaraborg dialect, and laughs often.

But now he comes to a Volvo, where many issues raised to symbolic issues, including housing.

He has moved to Gothenburg - where Volvo thru the Persson era had provided their CEOs with luxury apartments or villas. But now, that policy has been cancelled.

- I have rented a private apartment which feels great. A three and a half, which is great.

His wife and two children will move over to Sweden's west coast from the east coast city of Stockholm and join him later. During this transitional period, he will retain their house on Stora Essingen in Stockholm.

- But I have moved to Gothenburg, it is clear, he says.

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An interview with new Volvo CEO Martin Lundstedt

Dagens Industri / October 22, 2015

Ex-Scania man Martin Lundstedt is expected to take Volvo's shareholders on a journey from industrial conglomerate to a more focused truck manufacturer.

But the first day on the new job, he is keeping many of his thoughts to himself.

"A statement here and now would be unwise - and disrespectful to the organization I just stepped in. I want to listen to the employees and customers to understand how we can develop Volvo," says Martin Lundstedt.

A Volvo truck dealer in an industrial area along the highway in Hisingen acts as the press room where AB Volvo's new CEO Martin Lundstedt begins his first day on the job.

It has been a little over seven months since we disclosed that Olof Persson would be fired from Volvo, and Martin Lundstedt was the main candidate to succeed him. After sitting in quarantine for six months, it is time to deliver on the hopes that were born with the change of CEO.

Lundstedt is expected to drive the transformation from industrial conglomerate to truck manufacturers. It is not just about the big structural questions surrounding whether Volvo Construction Equipment (VCE) will be under the same roof, but also regarding ownership of listed companies Deutz and Mongolian fire engine manufacturer Mongolia Hauler Joint Stock.

"The first thing I will do is to get to know the business, meet people and my next product range," says Martin Lundstedt.

You must have thoughts about Volvo's structure?
"If I had formed any opinions about Volvo after just three hours on the job, I would not share them with you first. It can be noted that Volvo has strong market positions for its different brands, so it has a structure that has been successful. To begin to speculate structural changes now will not happen, "says Martin Lundstedt.

He has been in contact with activist fund Cevian, but says he has no reason to review the owners' vision of Volvo.

What to expect as a shareholder in Volvo?
"One should expect that we will go for it."

We reported yesterday that Martin Lundstedt is going from Scania which sparingly provides sponsorships, to Volvo where money is extravagantly spent on the Volvo Ocean Race, golf tournaments and Gothenburg Horse Show.

Do you like sailing, golf and equestrian sports?
"I've bought a 31 foot yacht, so I like sailing. I also enjoy golf and equestrian sports, but I seldom get the opportunity."

How do you look at Volvo's sponsorship methodology, which differs from Scania?
"The companies have different backgrounds and have different decisions. Volvo is visible in a number of contexts, and Scania in others. How we are to appear in the group in the future is something we will discuss," says Martin Lundstedt.

He is originally from the city of Mariestad western Sweden’s western province of Vastergotland, and holds a master's degree in engineering degree from the Chalmers University of Technology in Gothenburg, where he will settle.

A union representative at Scania said they would fly their flag at half mast if you were to leave. How do you feel about this?
"Sometimes life presents you with tough decisions, but then you should have a good dialogue and can look each other in the eyes. Half mast was difficult to take in, but I see it as an honor."

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Very hard work awaits new Volvo CEO

Goteborgs-Posten / October 22, 2015

After six months quarantine is Martin Lundstedt finally there, next to a truck in Bäckebol.

- We have much hard work ahead, he says.

Behind one of the doors at the Volvo truck dealer is a table with a white tablecloth. Coffee and cinnamon buns. Nearby, technicians are working as usual on trucks and buses.

The dealership’s gate raises up and a green Volvo bus rolls in.

In connection with the quarterly report just six months ago came the news that the Volvo Group was firing CEO Olof Persson, and that Scania CEO Martin Lundstedt would take his place. Since then, Martin Lundstedt remained in quarantine, with no contact with either the old or the new employer.

Over this period, he has been bringing himself up to speed on the “state of the union” at AB Volvo. While he already had firm knowledge of Volvo’s business where Volvo and Scania operated in the same markets, he now has learned more about the other areas of Volvo including the situation in North America.

- It is a great matter, and many different issues. There has been a very, very concentrated and focused work on Volvo and the most important message for me now is: this work will continue in a good way, says Martin Lundstedt.

The service technicians pause as martin Lundstedt steps through the gate together with CFO Jan Gurander. The media’s interest in this extraordinary press conference is huge, even more so that the quarterly performance announcement on Friday.

- It feels both exciting and a little nervous, says Martin Lundstedt.

He says he's been waiting months for this day. Now he wants to get started, meet employees and customers.

Martin Lundstedt grew up in Mariestad and graduated from the Chalmers University of Technology with a master's degree in engineering. After graduating in the early 1990s, he has spent his entire professional career at truckmaker Scania.

What was it that attracted you over to the competitor Volvo?

- I knew well when I was asked, I was ready for this step. It is a company that is one of the largest in Sweden, has a global position and a number of business areas that are new to me. I have a personal Gothenburg connection, having studied at Chalmers and having many friends here.

What will be the biggest challenge?

- To begin with, it is that together with management and employees to get to know the organization. It is a large company with huge market presence, two to three percent of our sales are in Sweden. I want to put myself in it and understand where we're going forward.

When it became clear six months ago that Martin Lundstedt would take over, Volvo’s share price took a huge leap upwards. And from ownership elsewhere, expectations are huge. Christer Gardell, a major shareholder through Cevian, said that he believes Mr. Lundstedt can and will make Volvo the world's best and most profitable truck manufacturer.

Can you fulfill everyone’s expections?

- You can not reply with absolute certainty, but you do not take a job that you do not think you can do good and to help develop. We will have much hard work ahead, but we should also remember that the Volvo Group already has a very strong position in many markets.

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High expectations for new Volvo Head

Goteborgs-Posten / October 22, 2015

Volvo Group must become more profitable. It is the market's expectation of AB Volvo's new CEO Martin Lundstedt.

-One is humbled by the task, said Lundstedt, which starts with learning to the organization.

Facts: Martin Lundstedt

Born in 1967.

Coming from: Mariestad, Vastergotland, Sweden.

Family: Married, with two children.

Education: Master of Engineering from the Chalmers University of Technology.

Career: His entire career spent at Scania. Started as a trainee in 1992. After a number of executive positions, including head of engine development, plant manager in France, director of product marketing and management for the truck. Appointed as President and CEO of Scania in 2012.

Trivia: He often played classical guitar at Scania staff gatherings.

Martin Lundstedt has gone "the long way" in Scania and is said to be a man with great interest for trucks.

This spring, Volvo announced it had recruited him to be president. It was a bit surprising, given many saw Martin Lundstedt as strongly associated with competitor Scania, where he has been President since 2012.

Now Lundstedt is beginning his new position at Volvo after a six month transitional 'waiting period'.

His first day included a meeting with the media. But rather than hold it in an executive building, Lundstedt held the press conference in the workshop of a Volvo truck dealer in Backa, Hisingen.

- I think is one of the most important factors for a successful Volvo is to be instrumental in creating a sustainable transport and logistics system, says Martin Lundstedt.

He will start out at Volvo getting to know the management, and talking to both employees and customers.

Sometimes the opinion that the group is too cumbersome, with a range of different products from trucks and buses to construction equipment and marine engines.

Volvo has acquired a number of different companies since 2000, but it has been unable to realize synergies and subsequent additional profitability that the market had hoped for. This was one of the key reasons for Olof Persson’s ouster.

“Volvo wasted four years and the Volvo share price was stomped, while the overall stock market was soaring like a spear,” says Albin Rännar at Aktiespararna (the Swedish Shareholders' Association).

Rännar have great expectations Lundstedt, calling Scania "one of the most well-managed companies."

-Volvo is a spread conglomerate of brands, each of which are strong in their respective markets, but with far too dispersed resources. I expect rationalization and savings, but also focus, development and investments. Scania has been in the forefront technologically and in terms of emissions, says Albin Rännar.

On Friday, Volvo presents its earnings report for the third quarter.

[Lmackattack]

Fingers crossed...

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Martin talks about the US market and the Mack brand at 1:58.

[james j neiweem]

Take the reins off of Mack as far as new products go and watch Mack soar.

[41180]

Unleash the dog . this could be the beginning of a resurgence. Several times in Mack's storried history it looked Grimm and a they made a comeback lets hope Martin lundstedt has a great vision for mack

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Scania’s Martin Lundstedt receives Pontus Schultz Award for more humane business

Dagens Transport / September 29, 2015

Martin Lundstedt is this year's recipient of Pontus Schultz award for a humane economy.

He was handed the award for his work as President and CEO of Scania, where he made diversity a key part of the company's business model.

The award is given annually by the Pontus Schultz foundation to individuals in the business community who have made significant efforts to increase diversity, equality and sustainability..

Martin Lundstedt was presented with the award for his seminar "Moving Limits - about the importance of biodiversity to Sweden's competitiveness", which was also organized by the Foundation.

“I'm incredibly proud of the work that I, together with my colleagues at Scania has implemented attention with this fine award,” says Martin Lundstedt. “For me, the recruiting talents with a diversity of backgrounds and experience just the starting point for a variety of work. It is primarily about implementing a diversity perspective in the analysis and approaches where different people's way of interpreting the world need to be included in the daily work. For companies operating on a global market, this is today crucial for continued success.”

The judge’s motivation:

"This year's laureates are constantly in motion, moving boundaries and challenge the prevailing view. In his role as Scania CEO, Martin Lundstedt has put a heavy truckmaker companies rolling at high speed by making diversity and inclusion a part of the business model. He has not only made ​​it because he is convinced it is the right thing, he has made ​​it to secure the value and future business opportunities in the global market. This year's laureate is a person who stands for its values ​​and the jury is convinced that he will continue to be a leading voice and force for a more humane business when he is now taking on the next challenge. "

The foundation’s board took note of Martin Lundstedt’s accomplishments:

- He set diversity as one of Scania's priorities for 2020 with the aim of removing labels such as gender, ethnicity and age and instead thinking skills, experience and attitude.

- That during his time at Scania initiated a number of projects to identify improvement areas in which the diversity perspective is missing. At Scania, which has 42,000 employees in 100 countries, diversity is seen as a business issue, and developments are monitored with clear indicators relating to diversity in leadership positions and how the understanding of diversity can be turned into pure business value.

- Scania's top management during Martin's tenure as CEO came to consist of people with 5 different nationalities.

- That the requirement to be Swedish is abolished in the company's trainee program.

Sara Öhrvall, chairman of Pontus Schultz Foundation, said of the award winner:

“Martin Lundstedt has a long and solid work on Scania diversity on the management team's agenda and formulated diversity as a business critical factor to remain competitive when the markets become more complex and global. With clear objectives, he has shown that the diversity of experience and perspective brings a diversity of ideas that can realize the best solutions. It is with great pleasure that we award Martin Lundstedt the 2015 Pontus Schultz award for more humane business.”