From the Managing Director
VBG GROUP restructures for increased profitability and future expansion
The Board of Directors has decided to change the Group’s organisation and structure. The Parent Company will strengthen its focus on growth and continued international expansion as well as clearer strategic management of the Group’s business divisions. The Parent Company is also responsible for the Group’s finances and allocation of resources between the business divisions, as well as for the Group’s long-term strategic development and management of HR and IT. Two new functions are being introduced in the Parent Company: Group Information & Business Development, and Quality Control.
In order to create a better focus on the operational businesses with clear responsibility for operating profit and loss and tied-up capital as well as for developing and executing business plans, the Group is being divided into three divisions instead of two business areas.
The VBG, Ringfeder, Onspot and Armaton brands are included in the Truck Equipment Division under the leadership of Anders Erkén and with head office in Vänersborg. The Edscha Trailer Systems and Sesam brands are included in the Trailer Equipment Division under the leadership of Per Ericson and with head office in Krefeld, Germany. The Ringfeder, Gerwah and Ecoloc brands are included, as before, in the Power Transmission Division under the leadership of Thomas Moka and with head office in Gross-Umstadt, Germany.
This change means that I am leaving my role as operational Business Area Manager for VBG GROUP Truck Equipment in order to focus fully on my role as CEO.
The new organisation takes effect in October, but some internal work remains to be done before all details are in place and implemented. Profit and loss follow-up and reporting will take place in the new structure starting with the first quarter of 2012.
The legal structure will also be adapted to the new organisational structure, but it will be implemented in several stages and will be completely implemented in 2012.
VBG GROUP TRUCK EQUIPMENT
The financial turmoil in Europe has increased during September, and there are good reasons to assume that this will affect our segments, even though the impact on our most important markets is still moderate. We are following the situation closely but have still not received any clear signals or information on the expected trend in motor vehicle production.
We are, however, prepared to respond if the economy takes a downward turn and demand for our products stagnates or declines. We have good flexibility in our cost structure for both sliding roofs and coupling equipment.
RINGFEDER POWER TRANSMISSION
It is gratifying to see that Ringfeder Power Transmission has succeeded during the third quarter in achieving an operating profit on the same good level as last year. And this was achieved in spite of lower turnover caused by the discontinuation of the trading operation in the USA in the second quarter. The operating margin has even improved, proof that the cost structure has been adapted quite effectively.
It was decided in September that the German head office, which is currently located in Grosswallstadt with a branch office in Krefeld, should be relocated to more practical joint premises in nearby Gross-Umstadt just south of Frankfurt. All of the nearly 20 employees in Krefeld have been invited to come along, but it is not yet clear how many are willing to move 300 km to Gross-Umstadt.
Anders Birgersson
Managing Director and CEO
