SUSTAINABLE MOBILITY THROUGH ELECTRIFICATION
2010 was a historic year for Volvo Car Corporation. After 11 years as a subsidiary of Ford Motor Company, Volvo Cars became an independent company under the ownership of Zhejiang Geely Holding. The sale was completed on August 2 and a new board was appointed.
As the new CEO it is encouraging to be able to show positive results and increased volumes during a year that has brought immense changes to the automobile industry in general and to Volvo Cars in particular.
March 2010 saw the launch of our new sedan model, the Volvo S60, at the Geneva motor show. Its sibling model, the Volvo V60 Sportswagon, was launched in Paris in October. Both cars have attracted significant attention for their design and world-leading safety technology; Pedestrian Detection with full auto brake.
Recovery and restructure for the automobile market
The global car industry is gradually recovering from the crisis years of 2008–2009. Volumes are increasing but weak labour and housing markets – primarily in the USA and southern Europe – continue to have a negative impact on private consumption.
The vehicle industry is undergoing a restructure, with focus increasingly shifting towards Asia. With expected annual new-car sales of 17 to 18 million units in 2011 and 2012, China will remain the most important growth market. The developing markets are also rapidly expanding their role.
Sustainable mobility continues to be a key issue
Irrespective of whether the centre of economic gravity is in the west or east, climate change and sustainable mobility are vital issues facing society and industry. The environment is in focus at Volvo Cars, along with safety and quality – values that have been the cornerstones ever since Volvo was founded back in 1927.
The developments in the field of electrification are clear for all to see, not least at the international car shows. In 2010, we launched the Volvo C30 Electric, an electric car which offers exactly the same levels of safety, comfort and interior space as the standard version. The difference is that it is powered by electricity – so it emits no exhaust emissions into the local environment.
Volvo Cars has carried out a number of tests in our advanced crash test laboratory to verify the car’s safety. Our excellent results would have given five stars had this been a EuroNCAP test – and this clearly demonstrates our leadership within car safety.
In early January we shipped our crash-tested C30 Electric to the Detroit Auto Show to publicise our results after a collision at 40 miles per hour. Both the battery and the electric cables remained intact after the collision. And, what was most important, the signals from the crash dummies translated into minor injury risks.
Environmental focus on a wide front
Electric cars are one of several tracks that make up our environmental and electrification strategy. At the Geneva Motor Show in early March we revealed our next move – the Volvo V60 Plug-in Hybrid. This car packs the best features of three different car types into one – an attractive sports wagon with all the added appeal of leading-edge hybrid technologies. Through a partnership with energy company Vattenfall, we will be the first car-maker to have this new-generation hybrid on the market already next year.
In the Volvo V60 Plug-in Hybrid, the electric engine is supplemented by an economical diesel with carbon dioxide emissions averaging just 49 grams per kilometre. This corresponds to fuel consumption of 1.9 litres per 100 km.
In 2010, we launched a pioneering project in Sweden, together with partners, to find out if it is possible to reduce carbon dioxide emissions from seven tonnes to one tonne per person and year – the level considered as sustainable for our planet. Hence the project’s name: “One Tonne Life”. As of January 2011, a family has the opportunity to test a future climate-smart lifestyle and housing alternative just outside Stockholm. The technically advanced villa in which they live generates its own energy from the sun, and even recharges the family’s car – a Volvo C30 Electric.
Responsibility throughout the chain
As a car maker our responsibility stretches throughout the value chain. From initial order at the supplier, through the production process and the car’s entire lifetime, to final material recycling. We aim to run a responsible operation and the demands we impose on our own production units also apply to those of our suppliers. That is why the company’s values on issues such as human rights and good working conditions are emphasised as clear-cut demands on our suppliers.
The fact that Volvo Cars is now under new ownership does not alter this basic requirement. Neither is there any compromise on the company’s view of and support for the Global Compact’s ten principles, which encompass human rights, working conditions, the environment and anti-corruption.
As before, this year’s corporate report has been integrated with our sustainability report. We have adopted this approach in order to demonstrate that sustainability issues are part and parcel of our everyday work here at Volvo Cars. A complete GRI report can be read on our website. Do please submit any ideas you have about how we can further develop our sustainability commitment at Volvo Cars.
Stefan Jacoby
President and CEO, Volvo Car Corporation