Shen Hui: Volvo's global recovery strategy is steadily advancing

“We don’t want to set a high profit target in the short term. In recent years, we will improve the entire operating system and systematically review the long-term development of the company.” Recently, the senior vice president of Volvo Car Group and chairman of China Shen Hui said.

Ready data is more important than good-looking statements <br> <br> It reported a first half of Volvo Cars, Volvo Cars saw a decline of 4.1% global sales and EBIT also declined. In this regard, Shen Hui said that the global economic downturn and the relatively severe market competition environment have had a certain impact on Volvo's market performance. Nevertheless, in the first half of the year Volvo Cars' global market operating revenue maintained a positive growth, an increase of 3.9% year-on-year. . As for EBIT, its “decline” is actually related to the fluctuation of the exchange rate. In addition, in order to steadily advance the global revival strategy of Volvo Cars, the company has accelerated the research and development of new products in the two years of acquisition by Geely, and has increased its investment in marketing and customer service, which is obviously on Volvo Car's EBIT had a certain impact.

“We are more willing to view the current period of development as a transitional period, and the company’s operations will return to a more ideal state after three years. Unilateral pursuit of good-looking data will only make Volvo’s long-term development unfavorable.” Hui told reporters that after Volvo Car acquired by Geely, the company invested a lot of energy in order to successfully separate its IT system, financial system, and procurement system from the Ford family without affecting normal operations. In the coming years, the company will continue to invest in product development, customer service, and talent strategy.

It is understood that Volvo has established a full-featured China region and has various support departments such as design centers, R&D centers, procurement teams, marketing service teams, product planning teams, and personnel administration.

With international standards of quality commitment <br> <br> how to ensure the quality of China-made Volvo after the widely concerned with the problems of the European Synchrotron, Shen Hui said: Volvo in the purchase of raw materials will undergo rigorous review, in equipment, Process and supplier quality requirements are also in sync with the international community. "In the future, Volvo's cars are exported to foreign countries. As representatives of international luxury cars, we have been strict in quality and there is no room for sacrifice."

It is reported that Volvo will focus its business in the next few years to further improve the brand image and ensure a stable increase in profits. For the former, Volvo will further strengthen its product quality and establish a better corporate image with quality services. Shen Hui repeatedly emphasized in the interview that Volvo Motors will not compete for market share by adopting a price war approach. Before launching the market, it must be supported by sound factory construction, supplier systems and dealer networks. For this reason, in the coming years, the company will further expand its dealer network and focus on covering the second and third tier cities so as to achieve the purpose of improving service levels and sales levels.

As we all know, to achieve long-term development, the implementation of effective cost control is particularly critical. In this regard, Shen Hui revealed that in the next five years, Volvo's purchase volume in China will increase from 3% to 20%, while the core supplier's procurement costs are expected to drop by 20%. "Reducing costs is an important way for us to improve our competitiveness. Of course, this premise is to ensure that Volvo's technical standards and quality standards do not sacrifice anything."