As it continues the process of integrating Renault VI and Mack Trucks while looking for ways to cut costs, Sweden's Volvo AB has announced a new, more simplified corporate structure.

Immediately after the merger between Volvo and Renault VI a year ago, Volvo AB set up a new company, Volvo Global Trucks, with Volvo Trucks North America, Mack and Renault VI as subsidiaries. Now Volvo Global Trucks is being integrated into Volvo Group, with Volvo Trucks, Renault V.I. and Mack Trucks becoming separate "business areas," which Volvo says will give them "more prominent and more distinct roles." Volvo Global Trucks will continue to be a business area within the Volvo Group only for the purpose of the external reporting of financial results.
Jorma Halonen, president of Volvo Trucks and chairman of Volvo Trucks North America, and Philippe Mellier, president of Renault V.I., will report directly to Leif Johansson, president and CEO of Volvo, and will be members of Volvo Group Executive Committee.
Michel Gigou, president of Volvo Trucks North America, who is responsible for the integration of truck operations in North America, will become chairman of Mack Trucks and a member of Volvo Group Executive Committee, reporting to Johansson. Paul Vikner, president of Mack Trucks, will report to Michel Gigou.
The current president of Volvo Global Trucks, Tryggve Sthen, will continue to serve on the Volvo Group Executive Committee.
This reorganization comes on top of a number of reorganizations within Volvo's North American operations in the last year, which saw the departure of VTNA top executive Marc Gustafson in February. Gustafson wasn't replaced until July, when the spot was filled by Mack's top exec, Michel Gigou.
Volvo Trucks North America announced reorganizations in September, when it cut out a layer of senior sales management, and in November, when the companies announced that several functions would be brought under common leadership, reporting to Gigou,