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Volvo

When Volvo CEO Leif Johansson sold the company's car division to Ford Motor Co. in 1999 to concentrate on heavy trucks, buses, and construction equipment, Swedes were aghast at the sale of a national icon. Six years later, however, Johansson's move has paid off handsomely. Volvo sales are up sharply, rising almost 14% in the first quarter of this year, to €5.8 billion, while profits almost doubled, to €503 million. And for the first time in several years, all of Volvo's divisions showed a profit. "We've never had such good margins," said Johansson in announcing the results.

North America was especially lucrative, with deliveries of construction equipment, Mack trucks, and Volvo buses and trucks up 50% in 2004 and 22% for the first quarter. And there are signs that the stagnant European heavy truck market may be rebounding. In October, 2004, Volvo reached a pact with Renault, its biggest shareholder, giving Volvo full ownership of Renault V.I./Mack, after a three-year dispute over the subsidiary's value. Mack has helped contribute to Volvo's healthy bottom line.

Besides boosting sales and earnings, Johansson has done some rigorous cost-cutting, saving Volvo €2 billion between 2002 and 2004. With the €5.5 billion Ford paid for the car division as a base, the company is cash-rich, and Johansson is eyeing acquisitions. This is one CEO who knows how to keep on truckin'.