Volvo Group will combine its North American truck operations, Mack Trucks and Volvo Trucks North America, into one entity called North American Trucks
, confirmed Mack Spokesman John Walsh. The new organization will be lead by Dennis Slagle, current president of Mack Trucks, according to published reports. The move was part of an effort to improve "profitability and efficiency," officials said.

"This reorganization is not about headcount reductions," said John Mies, vice president of corporate communications for Mack and Volvo. "It's about improving alignment and creating the most effective organization we can."

The combined organization will still operate as two separate sales group and separate brands. According to Mies, the two will continue to compete in the same segments that they have been, and there are no plans for brand differentiation.

Under the new structure, Per Carlsson, president of Volvo Trucks North America, will take on the position of chief operating officer, reporting to Dennis Slagle. The move will also make Volvo Powertrain and Volvo 3P more closely linked to the North American organization through dual reporting of their North American leaders to Slagle and their global leadership.

The move also came out of the need to better coordinate the goals of Volvo Group's North American operations, and more quickly implement decisions.

"To achieve sustainable profitability at acceptable levels, we are now moving forward with the integration of our North American truck business," says CEO Leif Johansson. "The new organization will speed decision-making and significantly improve the operational steering of sales and products, while allowing us to maintain our focus on global product platforms."

The new structure will take effect Nov. 1, 2009, and financial reporting will be based on the new organization as of Jan. 1, 2010.