Country: Sweden and Belgium
Service: Insurance Cost Assessment
Scope: Property, Plant and Equipment
Volvo Car Group (Volvo Cars) is owned by Zhejiang Geely Holding (Geely Holding) of China. Volvo Cars formed part of the Swedish Volvo Group until 1999, when the company was bought by the Ford Motor Company. In 2010, Volvo Cars was acquired by Geely Holding. The company sells cars in about 100 countries via a network of local dealers, with the head office, product development, marketing and administration situated in Gothenburg, Sweden and production plants located in Sweden, Belgium, the USA and China.
Our instruction was to provide independent and accurate assessments of the declared values for four of the company’s vehicle and engine production plants in Sweden and in Belgium, as well as at their research and development facility in Sweden, with figures being reported in accordance with the structure of the cover programme.
Working closely with Volvo’s insurance team, Charterfields undertook an overview inspection of each facility to develop a dataset from which costs were established and reported. Focussing on key departments where significant asset value was known to be concentrated and, following discussions with key local management and project managers to gather data about recent and proposed capital project costs, we developed the dataset with cost-based modelling and analysis to arrive at the values reported.
Charterfields were able to provide Volvo with a fixed-price, cost-effective solution to their insurance valuation requirements, within a limited timeframe and which minimised the time required on site and the involvement of Volvo personnel. As part of the report, we identified assets under construction which were planned to be completed by the date of insurance renewal. This enabled Volvo to account for these future changes and minimise the risk of under or over insurance. Whilst we were not instructed to provide insurance registers, we recorded sufficient asset data to support the values reported, should a loss occur.
Our instruction includes the ongoing provision of annual cost reviews throughout the three-year service period.