Mack, Volvo to merge organizations

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Updated Jan 21, 2010

Mack Trucks and Volvo Trucks North America, which already had common ownership under Volvo AB, merged Nov. 1 into a single organization called North American Trucks. A Mack spokesman says the company will continue to operate both the Mack and Volvo brands and maintain both sales organizations. The company is being headed by Dennis Slagle, currently president of Mack Trucks. Per Carlsson, president of Volvo Trucks North America, became chief operating officer and now reports to Slagle.

The Volvo Group says the merger was made to improve the group’s profitability and efficiency as well as to align operations more closely to North American Trucks. Also, Volvo Powertrain and Volvo 3P in North America now will be tied more closely to the North American organization through dual reporting to Slagle and Volvo global leadership, the company says.

“To achieve sustainable profitability at acceptable levels, we are now moving forward with the integration of our North American truck business,” says Leif Johansson, Volvo Group chief executive officer. “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.”

Mack Trucks is undergoing a restructuring that includes the recent move of the truck manufacturer’s headquarters from Allentown, Pa., to Greensboro, N.C., where Volvo Trucks North America is based.