Trend Comments

A. Customer satisfaction

Volvo Cars was ranked among the top three car makes in 12 percent of the independent surveys conducted in 2008 (a total of 25 surveys were performed in eight countries). Despite improved product quality and increased customer satisfaction in many markets, the company’s position has declined in the rankings reported for the past two years. Although the competition is intense, Volvo Cars’ goal is to improve its position significantly. In the future, the company’s efforts will focus on further increasing customer satisfaction through such measures as introducing new environmentally adapted car models in 2009 and further intensifying focus on the quality of the products.

B. Employee satisfaction

As part of Volvo Cars’ continuous efforts to create a better work environment, an extensive survey is conducted every year among all employees to determine their attitudes concerning such issues as communication, individual development and respect. The results of recent employee surveys have been relatively stable with approximately 80-percent employee satisfaction. Due to the extensive organisational adjustments made by Volvo Cars during the year, the employee survey that should have been performed in 2008 will instead be conducted in 2009.

C. Sales

In 2008, Volvo Cars sold a total of 374,297 cars, down nearly 20 percent from the preceding year. The entire automotive industry, including Volvo Cars, was hit hard by the financial crisis and recession. Sales during the year declined in all markets except the UK and China, where sales increased somewhat. Volvo Cars’ most sold model was the Volvo V50, which accounted for nearly 17 percent of sales with 62,085 cars sold during 2008. With new products such as the DRIVe cars and a turn around in the market, sales levels are expected to be stabilized and grow in the future.

D. Revenue

The year 2008 was a difficult year for car manufacturers as a result of the financial crisis and recession. Volvo Cars’ revenue fell to USD 14,679 million, down 18 percent compared with the preceding year. By launching new models and increasing awareness of the Volvo brand, the company’s goal is to stabilize and improve its revenue and financial results.

E. Safety

Volvo Cars has a long tradition of focusing on safety and the company’s vision is to ensure that not a single person is seriously injured or killed in a Volvo car in 2020. A large number of independent safety tests are performed every year and Volvo Cars’ goal is to place among the top in its class in these tests. In 2008, Volvo Cars received the highest possible score in 44, or 70 percent, of the 63 tests conducted, an improvement of 13 percent since 2006.

F. Fuel efficiency

Volvo Cars’ environmental work and focus on developing powertrains designed to reduce carbon dioxide emissions are beginning to generate results. The average emissions level for the company’s models in EU dropped from 190 to 182 g CO2/km and will decrease significantly in the coming years through investments in DRIVe and continued development within electric hybrid technology.

DEFINITIONS

Customer Satisfaction, rankings

Percentage of independent surveys in which Volvo Cars was ranked in top three makes (%).
This Key Performance Indicator (KPI) indicates the number of customer satisfaction surveys in which Volvo Cars was ranked 1, 2 or 3 compared with its industry competitors. The indicator includes a total of 25 different surveys in 8 different countries: Sweden, Britain, Germany, Italy, France, Spain, USA and Japan.

Most of the surveys include the majority of Volvo models. Three to four different surveys were carried out in each country under the following headings:

1. Sales: Customer satisfaction with dealer performance when buying a car
2. Service: Customer satisfaction with dealer performance with regard to service and/or car repairs
3. Product, short time in service: Customer satisfaction with product quality after 3 months of ownership
4. Product, extended time in service: Customer satisfaction with product quality after 3 years of ownership

This KPI does not include all surveys monitored by Volvo Cars. Surveys are carried out in all of Volvo Cars' most important markets. In parallel with the surveys conducted by different independent institutes and bodies, Volvo Cars undertakes its own survey, Customer for Life, to monitor trends in customer satisfaction with regard to the quality of sales and service provided by dealers in the majority of Volvo's markets.

Customer for Life is used operationally to develop local improvements which, in turn, produce improved results in competitor surveys.

Employee satisfaction

1. Respect
2. Co-operation
3. Delegation/influence
4. Performance feedback
5. Internal information/communication
6. Confidence/performance orientation
7. Overall understanding
8. Goals
9. Individual development
10. Easily implemented
11. Planning/follow-up
Of these the first five are "key areas" and come in order of priority. The percentage of answers amounted to 85% (from 89% in 2006). Sänder de siffror vi använder för answering rate som förklaring kan tilläggas att vi inte använder oss av decimaler.

The answer options are:
“Yes – Definitely”
“Yes – Mostly”
“Neither yes or no”
“No – improvement are necessary”
“No – improvement are very necessary”
“Don’t know”

Total Sales

Number of cars sold worldwide is defined as “cars delivered to end customers Trend in 2008”

Revenue – excl special items (million USD)

Figures refer to total income of Volvo Cars Corporation.

Profit Before Tax – excl special items (million USD)

Figures refer to Volvo Cars Corporation total revenue minus expenses before tax.

Safety test results

Figures refer to number of independent tests performed where Volvo cars were awarded the very highest ranking. A number divided with all independent tests performed. Independent refers to independent and non carmaker affiliated, institute or insurance company (such as EuNCAP, US NCAP, IIHS, HLDI, Folksam and Thatcham). The tests are based on crash testing in a well controlled environment at a certain speed, accident statistics and expert assessment.

Health

Occupational injuries

Gender Balance

Ratio of basic salary of women to men

Diversity

The answer options are:
“Yes – Excellent”
“Yes – Good”
“Neither good nor bad”
“No – improvement are necessary”
“No – improvement are very necessary”
“Don’t know”

This question was introduced in our annual Employee Attitude Survey as of 2004. In 2007 the question concerning diversity in the survey was changed, and is now addressing the working group instead of the company.

Total Workforce

Turnover

Significant Suppliers Screened for Human Rights

Fuel Efficiency

Harmful emissions

Limit, g/km Emission reduction compared with 2000, %
Hydrocarbons (HC) 0.1 50
Carbon monoxide (CO) 1.0 57
Nitrogen oxides (NOx) 0.08 47

From 2009, all new cars are required to comply with the next level of emission levels, as specified in the Euro 5 standard. Therefore this scorecard indicator will change.

Alternative fuels

Energy consumption in car production

In terms of cars produced, data were collected from the car production/assembly plants owned by Volvo Cars in Sweden, Belgium, Thailand and Malaysia with Göteborg (Sweden) and Ghent (Belgium) as the predominant locations. .
In terms of energy (MWh), the figures include both heating and electricity consumption. All energy consumption is expressed in MWh. The figures refer to actual energy consumption and data relating to heating have not been corrected to a standard year basis

Carbon dioxide emissions from car production

In terms of cars produced, data were collected from the car production/assembly plants owned by Volvo Cars in Sweden, Belgium, Thailand and Malaysia with Göteborg (Sweden) and Ghent (Belgium) as the predominant locations.

In terms of emissions, the figures are based on both heating and electricity consumption. The figures refer to actual emissions.

NOx emissions (tonnes)

SOx emissions (tonnes)

VOC (Volatile Organic Compounds) emissions from car production

In terms of VOC (Volatile Organic Compounds) emissions (kg), our cars undergo anti rust treatment and painting in our paint shops. The figures refer to emissions from both painting and anti rust treatment processes, and from cleaning of painting equipment.

Hazardous waste (tonnes)

Environmental management, Volvo Cars

Environmental management, suppliers