Billion Fines were met with silence on Volvo Meeting – Swedish newspaper Svenska Dagbladet

This year the Meeting in a new venue – Gothenburg Concert Hall instead of in Lisebergshallen – but the main issue was the same as last year: When will the profitability lift?

The CEO Olof Persson made no secret that he was disappointed with the company’s performance in 2014. Chairman Carl-Henric Svanberg was on the same theme during his brief opening statement.

Under the Olof Persson President’s speech, he stated to developments in the field above all plant equipment (loaders and graders) were nearly disastrous during 2014.

– Construction Equipment’ve had a really tough year. There have been dual headwinds. In China, we have lost much of the market, which have declined sharply. Results for movers went from 2.6 billion in 2013 1.2 billion last year. This is a decrease of 53 percent, said Olof Persson to shareholders and continued:

– We will now close a factory in Poland and implement changes in Brazil and the United States to reduce costs in the business area.

As for lorries , the Group’s main business area, the picture is somewhat brighter. The total truck sales rose 7 percent in 2014. In particular, North America was a positive element, while Europe is at a standstill in terms of sales, told Olof Persson.

The profit margin for the entire group last year was low three percent. The fourth quarter of 2014, the Group with over two billion in losses.

Olof Persson lifted also presented the strategic cooperation with Chinese truck manufacturer Dongfeng.

– Finally. After much work is now co-operation running. We own 45 percent of a Chinese successful company and I am confident that it will be very good for Volvo, there are great synergies to download and we believe very strongly in cooperation, said Olof Persson

The vexed question cartel allegations touched Olof Persson only at briefly. He noted that an investigation is underway in the EU that has set the entire 3.8 billion kronor for any fines. But it was not something that impressed Albin Rännar, director of the Shareholders ‘Association’s Annual monitoring.

Shareholders’ Association demanded answers to Volvo in a range of issues, including the threat of precisely billion fines for cartel activity.

– I am disappointed that they can not give more information regarding this. It’s hugely serious allegations and as shareholders wonder of course if there is a risk even higher fines, said Albin Rännar.

– I think in general that Volvo management conjures up two images that do not go together. On the one hand, they demonstrate weak profitability and gigantic problems regarding construction equipment. On the other hand, they talk about now, everything should be better. 2015, it happens. 2015, the high profitability of the lift. It’s just that you have said in the past year as well. Nothing has happened.

Albin Rannars criticism can be illustrated by Olof Persson’s final words in his speech:

– Volvo are on the right path. I am fully convinced that the Volvo Group has all the prerequisites to become one of the most profitable companies in our industry.