Swedish car manufacturer Volvo Car Group will set up a new global purchasing and manufacturing function to decrease the complexity and costs.
Scheduled to be operational form 01 July 2013, the organization is expected to create distinct governance, quality assurance and cost control throughout the entire value chain.
The new unit will be responsible for optimizing the value chain, from supplier to manufactured car in areas including material planning, logistics and manufacturing, and will be headed by the current Volvo Manufacturing senior vice president Lars Wrebo.
Volvo Cars president and CEO Hakan Samuelsson said, "We need to strengthen the substantial processes within the company at the same time as we strive to reduce bureaucracy."
Lars Wrebo said it will be even more important in the future to view manufacturing at the company's suppliers as one part of the whole value chain.
"There is big potential in reducing waste by having a more integrated way of working," Wrebo added.