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1 Volvo 3P Page1
2 Russia December 2, 2011
3 Volvo Group Russia - Milestones 1969 Volvo brand registered in USSR 1973 First Volvo truck delivered to USSR 1994 VTC Office opened in Moscow 1998 ZAO Volvo Vostok is created 2003 VTC Zelenograd opened 2004 VFS Vostok established First Volvo Truck Center in St Petersburg opened 2006 Volvo Parts Regional Warehouse opened 2007 Decision upon investments in Volvo Plant in Kaluga taken OCT.15 Ground Breaking Ceremony 2008 Volvo Truck Center Moscow-North opened Year Anniversary of Volvo in Russia 2009 Jan.19 Grand ceremony of Production start on Kaluga Plant Volvo Truck Center Kaluga opened. Page 3
4 Volvo in Russia 38 years of success Volvo Trucks became the first foreign truck manufacturer to deliver trucks to Soviet Union. 100 trucks Volvo F89 to Sovtransavto Leningrad in Page 4
5 Volvo Group news in oct early Volvo Renault 1000 employes
6 Kaluga Plant, Russia First common plant VTC & RT Capacity: Volvo & Renault Trucks Local sourcing part of the business case Russian HD truck market expected to grow The market demands European trucks 6
7 Kaluga Plant Page 7
8 Volvo in Russia Page 8
9 3P 1. Volvo group 2. 3P 3. 3P Page9
10 Corporate Values Page10
11 Volvo Group Volvo Trucks Renault Trucks Mack Trucks UD Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Volvo Powertrain Volvo Parts Volvo Logistics Volvo Technology Volvo Information Technology Volvo Group Real Estate Volvo Business Services Page11
12 New Volvo Group Organization CEO office coordination Human Resources Public & Env. Affairs CEO Strategy Legal Group Trucks Communication IT Governance Truck Joint Ventures* Group Trucks Sales & Marketing Americas Mack Global Brand Group Trucks Sales & Marketing EMEA Renault & Volvo Global Brand Group Trucks Sales & Marketing APAC UD Global Brand Group Trucks Operations Group Trucks Technology Volvo CE Business Areas** Finance & Business Support Volvo Penta VFS Volvo Aero Volvo Buses * Chairman of UD Trucks legal company ** Chairman of VCE Governmental Sales 12
13 Global Line-up Page13
14 Products Volvo Trucks FH FM FMX Page14
15 Products Renault Trucks Premium Kreax Page15
16 Volume Plan Jan Future capacity Installed capacity
17 3P 1. Volvo group 2. 3P 3. 3P Page17
18 Global Presence Gothenburg 1314 Allentown 295 Greensboro 404 Lyon 961 Bangalore 177 Shanghai 40 Ageo 363 Employees: Curitiba 105 Sites: 9 Supporting 4 brands Brisbane 25 *Approx figures, March 2009 Page18
19 Volvo invests for the future New Heavy duty range for VTC Europe & Brazil New heavy duty range for RT New electronic architecture New medium duty range project Russia growth Low cost range project P9103 in connection with 2 JVs Page19
20 3P 1. Volvo group 2. 3P 3. 3P Page20
21 purchasing Global Presence Gothenburg 150 Lyon 150 Moscow 9 Poland 9 Bursa 4 Ageo 60 Greensboro 100 Mexico 8 Bangalore 70 Shanghai 40 Curitiba employees 4.8 B spend Brisbane 8 Page21
22 strategy Strongly support the Trucks Brands' growth objectives Focus on supplier performance More Business with less suppliers Build strong relationships with world class suppliers Drive Efficiency to Operational Excellence Page 22
23 FRAMEWORK Segment Strategy Definition Global Sourcing Process BUSINESS AWARDING Segment Strategy PSL Supplier choice Global Sourcing Process works in processes The GSP is an 8 steps process 4 main activities 3 approval milestones QUALITY is a part of the supplier selection Validation by Decision Fora The first activity is made of step 1 (segment strategy definition) Example of input: Request For Information (RFI) and Short Supplier Evaluation Model (SSEM) The second activity is made of step 2 (Data Collection) and step 3 (Identify Pot Supplier). Example of output: RFQ, Potential Suppliers List (PSL) is approved by a decision forum The third activity is made of step 4 (Request For Quotation), step 5 (Evaluations;SEM,Indexes like Surface Treatment,Rubber,Software,Castings etc), step 6 (Initial negotiation), and step 7 (Supplier choice). Example of input to step 7: SEM, signing contract s (PA,Productivity,Warranty PPM etc.) The fourth and last activity is made of step 8 (Final negotiation & implementation). Example of output: PMR start (Product Modification Request (project)
24 Premium supplier Key measurements Quality PPM < 10 QPM < 30 ISO/TS certification Acknowledge SQAM compliance Safety ZERO incident Environmental care ISO certification Deliveries Dispatch precision 98% Logistic audit level A Full EDI/ WEB EDI Corporate Social Responsibility Acknowledge Key Element Procedure 6 compliance Commercial Competitive product cost Payment terms 105 days Financials Dependency < 30% Financial rating 2 Projects Design to cost Deliver on the Quality, Delivery, Cost and Features commitment Agreements PPM Agreement Purchase Agreement Warranty Charter Acknowledge Key Element Procedures compliance Page24
25 Key Element Procedures describes details Quality requirements in detail Adobe Acrobat 7.0 Document Comments to Key Elements
26 Volvo Construction Equipment in Kaluga Вольво Строительные Машины в Калуге A new plant is being built in Kaluga nearby Volvo Trucks with SOP in 2013 Supplier base for local content is being established for Welded structures Under carriage parts Steel castings Строится завод площадью. квадратных метров. Начало производства в Развивается сеть местных поставщиков для Стального литья Сварных конструкции
27 Layout Total Site Area : 142,000M 2 Russia RAM(EXCA.) : 102,600M 2 Free Space( A ) : 39,400M 2 40 T/up painting, TDI PDI CBU Stock DI External Road 440m Fabrication line (Upper & Lower) Assembly line Frame painting W/p arts stoc k Warehouse Office 210m m 180m 72m
28 Product Configuration L M Width : 3,440 mm Model Excavator Description(Max imum) Unit EC360B(3.9m Arm) EC460B(4.8m Arm) EC460C(4.8m Arm) Overall Length(L) mm 11,223 12,070 11,940 Overall Width(B) mm 3,340 3,340 3,440 Overall Height(M) mm 3,625 3,650 3,650 Operating Weight kg 36,500 ~ 38,360 44,500 ~ 47,880 44,500 ~ 47,880
29 VCE Kaluga : Volume and capacity Excavators production volume in Kaluga Excavators volume in Kaluga capacity
30 Volvo Group is Growing Our supplier base benefits from this growth Do You want to join? Contact details to Thomas Motéus, Project Manager Russia Address: International, Dept , AB4N Gothenburg, Sweden Page 30
31 Thank You! Спасибо!
32 Page32
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