Continued Strength for Volvo

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Dagens Industri  /  May 23, 2017

Demand from Volvo Group's most important markets is now at the same levels as in the first quarter report, CEO Martin Lundstedt told Di.

"Generally, it is the same underlying foundation in Europe, North America and China," he says to Di.

In the report for the first quarter of April, Volvo reported a significantly improved order intake on trucks in North America and Asia.

In addition, orders for heavy trucks in Europe increased from high levels, while the market for construction machinery improved globally.

Since the report, the market situation has not changed according to Lundstedt.

"In general, it is the same. With that said, I think the new normal is that we have to be on the go all the time because the horizons are getting shorter", says Lundstedt.

On the stock exchange Volvo's share evolved brilliantly and interest in capital markets in Eskilstuna is record high. Never before has Volvo had so many guests on a capital market day.

Do you feel worried that the stock market is building up owing to high expectations from you?
"The important thing for us is to be consistent in our message of what we stand for," says Martin Lundstedt, pointing out four key points for it:

• "It is a matter of the stock market being aware of what lies behind the underlying improvement."
• "We continue to build trust by showing that we are more resistant to volatility in demand."
• "We have a clear and good view regarding the allocation of capital to the various stakeholders around the company."
• "The fourth is that we build confidence that we have a position for the future when there is a lot of traffic and infrastructure. It's about continuing to build confidence in the deal. "

During the capital market day, Volvo's presentations focused on decentralization, service business, technology, continuous improvement and productivity.

"We have a broad improvement in the Volvo Group. All business areas are improving, "says CFO Jan Gurander.

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