Volvo Cars creates new joint function for global purchasing and manufacturing

May 24, 2013: Volvo Car Group (Volvo Cars) will establish a new global purchasing and manufacturing function to reduce complexity and costs. The new organisation will also create more distinct governance, quality assurance and cost control throughout the entire value chain. The new unit will be headed by Lars Wrebo, currently senior vice-president, manufacturing (pictured).

"This change is part of our efforts to reduce complexity. We need to strengthen the substantial processes within the company at the same time as we strive to reduce bureaucracy. Lars Wrebo will have a central and comprehensive role through this new function which will be a natural hub together with Research & Development and Product Strategy," says Håkan Samuelsson, President and CEO of Volvo Cars.

Hence the new function will be responsible for optimising the value chain, from supplier to manufactured car, through material planning, logistics and manufacturing. Lars Wrebo has more than 25 years of experience from the automotive industry. He has spent most of his career at Scania Group and MAN before joining Volvo Cars on April 1 2012 as senior vice-president (manufacturing). In previous positions he has been responsible for the whole production flow, from procurement of material to finished product, and emphasises the suppliers as one important success factor.

"It will be even more vital in the future to view manufacturing at our suppliers as one part of the whole value chain. There is big potential in reducing waste by having a more integrated way of working," says Lars Wrebo.

In connection with this organisational change, Axel Maschka, senior vice-president (Purchasing), will leave Volvo Cars. "I would like to take this opportunity and thank Axel Maschka, who at the time of change has elected to leave Volvo Cars. Axel Maschka has been instrumental in building up a global purchasing function and realised strategic improvements and savings. He has also initiated several important joint cooperation projects between Geely and Volvo," says Håkan Samuelsson.

The new unit will be operational as from July 1.