Vision & Strategy
Our values – leadership, innovation, and performance – make us what we are.
The KION Group is committed to delivering a sustained increase in shareholder value. It has therefore set itself strategic objectives and is focusing on sustained growth, efficiency, and strong earnings.
The KION Group aims to use its strong competitive position to become the provider with the largest market share in the sector and, in the medium term, to be the undisputed market leader. Factors that will help achieve this objective are the Group's market-leading technologies, its high proportion of service business and, in particular, the initiative it launched in 2009 to boost performance.
The KION Group’s strategy is centred on international growth and strong profitability. Building on their leading position in western Europe and in the premium price segment, the KION Group wants to increase their market share in the core markets and in fast-growing markets outside western Europe in future. This is accompanied by a greater presence in the value and economy price segments.
1. Strengthen the leading position in western European core markets by investing in research and development
The KION Group is consolidating its position as the number one in Europe’s industrial truck market with customer-focused technological innovations and a high proportion of trucks with customer-specific equipment. The KION Group aims to increase customer benefits in all price segments by introducing innovative drive systems, advanced ergonomics, intelligent intralogistics solutions and more.
2. Expand the range of services in European markets and in growth regions
The KION Group is continually extending its portfolio of services and improving their quality at every stage of the product lifecycle. This includes servicing, maintenance and spare parts as well as fleet management solutions, intralogistics processes, efficient supply chains and IT systems. The Company also intends to increase its market share by, for example, opening additional service outlets in attractive growth markets and stepping up the short-term rental business.
3. Harness the full market potential of growth regions
The range of products and services is tailored to region-specific requirements. That is why the Company is launching region-specific products in the value and economy segments and strengthening its local production and sales network. To this end, the KION Group operates a multi-brand strategy in the different regions. Region-specific products based on low-cost product platforms are the preferred option in the emerging markets of Asia, Central America and South America.
4. Optimise production and thereby reduce costs
Over the past few years, the KION Group has streamlined its production capacity in developed markets, bringing about improvements to capacity utilisation and cost efficiency. At the same time it has created new capacity in Brazil, India and China.
The aim is to continue to monitor the degree of inhouse production as well as to increasingly manufacture trucks locally to serve the emerging markets. The same is happening with product development, particularly for the value and economy price segments. The development site in China, which was expanded again in 2013, is playing a key role here.
5. Leverage groupwide synergies
The KION Group harnesses groupwide synergies and uses resources efficiently by centralizing certain functions. Central departments are responsible for purchasing, quality and production control, logistics, financial services and IT. This makes it possible to establish best practice across the Group. In product development, a cross-brand, cross-regional modular and platform strategy enables a greater number of common parts, bringing advantages in terms of product costs and development costs yet retaining distinct identities for each brand.
6. Continually improve operational performance and robustness
There are also a number of research and development initiatives aimed at cutting costs, improving quality and speeding up the development process. The KION Group also adapts products to country-specific requirements so that they can be launched successfully in those countries.
Who is the KION Group, what does the name mean and what vision does the company follow?
The high innovative power of our brands
19 March 2015
Financial statements press conference / Publication of 2014 annual report