New financial targets for Volvo Group
The Board of Directors’ of AB Volvo has in its annual review decided to introduce new financial targets for the Volvo Group.Financial targets · The Group’s operating margin shall exceed 10% measured over a business cycle. · Financial Services’ target remains unchanged with a return on equity of 12-15% at an equity ratio above 8%. · The Industrial Operations shall under normal conditions have no net financial indebtedness excluding pension liabilities. Rationale The Volvo Group has in recent years gone through a substantial restructuring process in order to reduce