While customers remain keen to get their hands on a new Volvo, especially one with a cord, supply chain issues continue to pose a challenge to our production. 

When we communicated our February sales figures, we could see the supply chain situation slowly improving and production levels were on the rise. Now, a month later, production has taken a downward turn due to a lack of a certain type of semi-conductor we need to assemble sparkling new Volvos.
Customer demand remains strong, but at the moment we can’t produce cars at the pace we’d wished and planned for. This means that we’re now expecting a temporary deviation from the slightly upgoing trend we could see over the past few months. We continue to monitor the potential impact to our business to be ready for further actions whenever needed.
In March, we sold 58,667 cars around the globe, which is 22.1 per cent less than during the same month last year. In the first quarter, total sales reached 148,925, a decline of 20.1 per cent versus the same period in 2021.
Our global sales of Recharge cars made up 35.5 per cent of all the cars we sold during the month. If we’re looking only at our fully electric cars, their share made up 9 per cent of our total March sales. For the whole first quarter, Recharge sales counted for 33.6 per cent of our total sales, while fully electric cars made up almost 8 per cent.
One thing worth celebrating is that at the end of March, the number of active subscriptions had increased by an impressive 174 per cent compared with the same month last year. This was enabled by increasing customer demand in combination with a broadened offer in more markets.

Now, let’s zoom in on our regions for a while. While European sales fell 30.4 per cent in March, it’s encouraging to see Recharge models making up more than half of total sales. During the first quarter, European sales were down 25.6 per cent compared to the same period last year.
In China, March sales declined by 22.6 per cent compared to the same month last year. In the first quarter, we saw a sales decline of around 21 per cent versus the same period last year.
US sales in March were down 5 per cent if we compare with the same month last year, while for the first quarter, sales declined by 16.5 per cent compared to the same period in 2021.
Our top-selling model in March was the XC60, followed by the XC40 and the XC90.
<table>
<col style="width:22.92%" />
<col style="width:12.5%" />
<col style="width:12.5%" />
<col style="width:12.5%" />
<col style="width:12.5%" />
<col style="width:13.54%" />
<col style="width:13.54%" />
<tbody>
<tr>
<td>March</td>
<td></td>
<td></td>
<td>January-
March</td>
<td></td>
<td></td>
<td>
<pre><code> |
</code></pre>
</td>
</tr>
<tr>
<td></td>
<td>2022</td>
<td>2021</td>
<td>Change</td>
<td>2022</td>
<td>2021</td>
<td>Change</td>
</tr>
<tr>
<td>Europe</td>
<td>26,954</td>
<td>38,723</td>
<td>-30.4%</td>
<td>65,157</td>
<td>87,550</td>
<td>-25.6%</td>
</tr>
<tr>
<td>Recharge</td>
<td>14,290</td>
<td>15,271</td>
<td>-6.4%</td>
<td>34,110</td>
<td>35,842</td>
<td>-4.8%</td>
</tr>
<tr>
<td> - Plug-in hybrid</td>
<td>10,894</td>
<td>14,099</td>
<td>-22.7%</td>
<td>26,518</td>
<td>32,741</td>
<td>-19.0%</td>
</tr>
<tr>
<td> - Fully electric</td>
<td>3,396</td>
<td>1,172</td>
<td>189.8%</td>
<td>7,592</td>
<td>3,101</td>
<td>144.8%</td>
</tr>
<tr>
<td>China</td>
<td>12,378</td>
<td>15,999</td>
<td>-22.6%</td>
<td>35,698</td>
<td>45,242</td>
<td>-21.1%</td>
</tr>
<tr>
<td>Recharge</td>
<td>1,314</td>
<td>754</td>
<td>74.3%</td>
<td>3,143</td>
<td>1,941</td>
<td>61.9%</td>
</tr>
<tr>
<td> - Plug-in hybrid</td>
<td>1,051</td>
<td>726</td>
<td>44.8%</td>
<td>2,708</td>
<td>1,777</td>
<td>52.4%</td>
</tr>
<tr>
<td> - Fully electric</td>
<td>263</td>
<td>28</td>
<td>839.3%</td>
<td>435</td>
<td>164</td>
<td>165.2%</td>
</tr>
<tr>
<td>US</td>
<td>9,428</td>
<td>9,924</td>
<td>-5.0%</td>
<td>22,757</td>
<td>27,239</td>
<td>-16.5%</td>
</tr>
<tr>
<td>Recharge</td>
<td>2,430</td>
<td>1,268</td>
<td>91.6%</td>
<td>6,018</td>
<td>3,121</td>
<td>92.8%</td>
</tr>
<tr>
<td> - Plug-in hybrid</td>
<td>1,756</td>
<td>1,216</td>
<td>44.4%</td>
<td>4,360</td>
<td>2,801</td>
<td>55.7%</td>
</tr>
<tr>
<td> - Fully electric</td>
<td>674</td>
<td>52</td>
<td>1,196.2%</td>
<td>1,658</td>
<td>320</td>
<td>418.1%</td>
</tr>
<tr>
<td>Other</td>
<td>9,907</td>
<td>10,669</td>
<td>-7.1%</td>
<td>24,683</td>
<td>25,667</td>
<td>-3.8%</td>
</tr>
<tr>
<td>Recharge</td>
<td>2,804</td>
<td>2,211</td>
<td>26.8%</td>
<td>6,503</td>
<td>5,650</td>
<td>15.1%</td>
</tr>
<tr>
<td> - Plug-in hybrid</td>
<td>1,881</td>
<td>2,200</td>
<td>-14.5%</td>
<td>4,467</td>
<td>5,620</td>
<td>-20.5%</td>
</tr>
<tr>
<td> - Fully electric</td>
<td>923</td>
<td>11</td>
<td>8,290.9%</td>
<td>2,036</td>
<td>30</td>
<td>6,686.7%</td>
</tr>
<tr>
<td>Total</td>
<td>58,667</td>
<td>75,315</td>
<td>-22.1%</td>
<td>148,295</td>
<td>185,698</td>
<td>-20.1%</td>
</tr>
<tr>
<td>Recharge</td>
<td>20,838</td>
<td>13,536</td>
<td>6.8%</td>
<td>49,774</td>
<td>46,554</td>
<td>6.9%</td>
</tr>
<tr>
<td> - Plug-in hybrid</td>
<td>15,582</td>
<td>18,241</td>
<td>-14.6%</td>
<td>38,053</td>
<td>42,939</td>
<td>-11.4%</td>
</tr>
<tr>
<td> - Fully electric</td>
<td>5,256</td>
<td>1,263</td>
<td>316.2%</td>
<td>11,721</td>
<td>3,615</td>
<td>224.2%</td>
</tr>
</tbody>
</table>

March sales: Strong Recharge sales continue to stand out

On his first day as the CEO of Volvo Cars, Jim Rowan shares his thoughts on his new role, company culture and the future of automotive industry.

Hej everyone,
A new chapter in my life starts today. And it’s one that I’m incredibly excited about. To be able to join Volvo at this moment in time, in the middle of an enormous transformation, is very inspiring.
So when people ask me, “Why did you join Volvo?”, that’s my answer. I’m just really inspired by the opportunity. To be part of our shared journey in the coming years, to work with you all and create a company that is a leader in next-gen mobility, and take the company to new heights is something I really look forward to.
While I’m a lover of engineering and technology, I’m not a traditional automotive guy. I think that’s a good thing. Volvo is full of people who know the automotive industry inside out and have all the relevant skills. You don’t need me for that!
What I hope to bring to the table are insights and experience from the high-technology consumer products industry, as we make that transition to next-gen mobility. If we blend that with the talent and knowledge that we’ve built up within Volvo over the last 95 years, and put it together in the right way, I think it will be an extremely powerful combination.
We’ll always have our history and our pedigree. People trust the Volvo brand and know that it stands for something authentic and honest. No one can replicate that. But the language and expectations of next-gen automotive are changing. It used to be all about horsepower and cylinders. Now, it’s becoming much more about embedded technology that makes things easier and more convenient for our customers. The language has become much more inclusive and progressive, which is good.

Our purpose says it very well: we want to offer people the freedom to move in a safe, sustainable and personal way. Taking mobility carbon-free and being responsible for that transition is extremely motivating. It’s not just the right thing for Volvo, but more importantly, it is the right thing for society.
This is our moment to demonstrate that we take human safety as seriously as we take planetary safety. Two things that have never been more important and in which we will continue to do even more. Our approach to 100% electrification and a safe introduction of autonomous drive has engaged the whole company and we will achieve it, together. But in next-gen automotive, I also think the personal element will be more important than ever. Direct connection to our customers will become a huge enabler for sustained, profitable growth and additive to our brand value.
When you buy a Volvo or subscribe to one, you’ll still get a robust, reliable, safe, high-quality car. That won’t ever change: we’ll continue to invest and innovate in all of the core competencies that we’ve built over several decades. However, if we add to that an all-inclusive and seamless Volvo experience for our customers, we can make it their brand of choice throughout their lives. Mobility that not just protects you, your loved ones and the environment, but also gives enjoyment, convenience and complete peace of mind.
Finally, just a few words about our culture. Trust is important to me. I’d like this to be a company that trusts its people to do their job, a culture that provides equal opportunities to all, where our people are empowered to use their judgment and skills to help deliver our key objectives.
It also means that we’re a company that has earned the trust of its people. A company that’s here for you when you need support, whatever it is. And if something’s about to go wrong, I want everyone to feel confident to speak up and ask for help and guidance to solve the issue at hand. We will win as a team: no finger pointing, no blame game, let’s just get everyone focused on the mission.
Anyway, enough talk for now. You may have to be a bit patient with me in coming weeks as I get up in the saddle, but I plan to visit all our operations and get up to speed quickly. I look forward to meeting you and starting off this adventure together with you.
Jim

A letter from our new chief executive Jim Rowan: we will win as a team

Our strong sales performance in 2021 has translated into an even stronger financial result. 

It’s no secret that 2021 was a challenging year in many ways. A pandemic that still refuses to be defeated, global supply chain issues caused by a rocky trading environment, a lack of semiconductors; we've definitely had easier years in the car industry and in our company.
Nevertheless, we performed strongly in the face of that adversity. We recorded a solid sales increase for the full year, delivering just short of 700,000 new Volvos to customers and increasing market share.
Today we report that financially, we’ve also done very well. As a matter of fact, we’ve set a record in terms of both revenues and profitability for a full calendar year.
Our global revenue came in at SEK 282 bn, an increase from SEK 262.8 bn in 2020, while the operating profit for 2021 amounted to a healthy SEK 20.3 bn, compared to SEK 8.5 bn in 2020. The resulting profit margin is 7.2 per cent, which is close to our mid-term target of consistently achieving an 8 to 10 per cent profit margin.

“I would like to take this opportunity to thank all employees for a great effort and for all we have achieved together,” says our CEO Håkan Samuelsson. “Through collaboration and determination, we’ve made tremendous progress over this last decade. We’ve placed Volvo Cars firmly on the map as a brand that is leading mobility into the future in a safe, sustainable and personal way, showing it is possible to be both profitable and more sustainable.”
Of course, such strong financial results also have a positive impact on our Volvo Bonus programme, as head of Corporate Functions Hanna Fager and our CFO Björn Annwall reveal in the film above. All Volvo Cars employees will receive a bonus this year and the payout level will be a record 200 per cent of the annual bonus target.
This is a deserved reward for all staff after a year of hard work.
To read the press release, please <a href="https://www.media.volvocars.com/global/en-gb" target="_blank"> click here </a>

FY 2021 financial results: all-time high revenue and profitability

We’re making great progress on our ambitious electrification journey and now we’re taking it up a gear with a huge financial investment in our Torslanda plant.

Our future is all-electric – we aim to be a pure electric car maker by 2030. To reach this target, we must have the facilities and infrastructure in place to do so. In preparation for our next generation of fully electric cars, we’re investing SEK 10 billion into our plant in Torslanda, Sweden.
As part of the investments, we’re upgrading the plant with more sustainable and innovative technologies and manufacturing processes. These include the introduction of mega-casting of aluminium body parts, a new battery assembly plant and fully refurbished paint and final assembly shops.
The investments follow on our recent announcement with Northvolt, the leading battery cell company, to invest SEK 30 billion in the development and manufacturing of high-quality, tailor-made batteries for the next generation of pure electric Volvos.
“With these investments, we take an important step towards our all-electric future,” said Håkan Samuelsson, our chief executive. “Torslanda is our largest plant and will continue to play a crucial role in our transformation as we move towards becoming a pure electric car maker by 2030.”
By mega-casting the aluminium body parts for the next generation of electric models, we take an important step forward in our electrification strategy, and on our path to become a climate neutral company by 2040 – the biggest challenge we’ve ever faced.
Mega-casting is a manufacturing process whereby many stamped parts are replaced with one single, large aluminum casting. Current car chassis are typically made up of hundreds of individual parts, made of many different materials, and must be assembled in several different ways using welds, bolts and adhesives.
Casting the floor structure of the car as one single aluminium part instead of more than 100 steel details reduces weight, which in turn improves the energy efficiency and thereby the electric range of the car. The process also allows our designers to use the available space inside the cabin and luggage area in the best way possible, boosting the overall versatility of the car.

Mega-casting also creates multiple benefits in terms of sustainability, cost and car range performance. It’s also a leap into the future; we’re the second car maker in the world to implement this manufacturing technology.
Other benefits from mega-casting include reduced complexity in the manufacturing process. That in turn creates cost-savings in terms of material use and logistics, reducing the overall environmental footprint across the manufacturing and supply chain networks.
The upgrade of the paint shop involves the installation of new machinery and implementing new processes, which are expected to support the ongoing reduction of paint shop energy consumption and emissions – all in line with our work to consistently cut carbon emissions across the business.
“Today is a great day for the Torslanda plant as we are making it fit for the future with this significant investment,” said Javier Varela, head of engineering and operations. “Our future as a company is all-electric and that requires a variety of upgrades across the plant, to ensure that Torslanda can continue to build premium electric cars of the highest quality.”
A new battery assembly plant will integrate battery cells and modules in the floor structure of the car, while the assembly shop is being refurbished and adapted for the manufacturing of the next generation fully electric cars, for example with a new ‘marriage point’ where the top body and the floor of the car meet.
The logistics area will also be completely refurbished, improving material flow and optimising the transport of goods and parts into the plant. We’ll also invest in facilities around the plant, such as break areas, locker rooms and offices, to further improve the working environment for all our employees.
The investments mark an important milestone on our roadmap to become a fully electric car company by 2030 and reflect our commitment to a long-term future in our hometown of Gothenburg.

10 billion SEK investment in our electrification journey

Today we’re listing our company on the Nasdaq stock exchange in Stockholm – a historical moment for Volvo Cars. 

Our new chapter will begin with the official bell-ringing ceremony, followed by a variety of media engagements for our chief executive Håkan Samuelsson and other members of our Executive Management Team. In those interviews, they’ll explain in more detail how we’ll use the proceeds of the listing to support and strengthen our abilities to deliver on our ambitious plans for the future.

If you want to follow the development of our listing, you’re welcome to visit the Investors section of our website. 
<a href="https://investors.volvocars.com/en">Visit investors</a>

IPO process: today we’re making history!

Give a warm welcome to Olivia Ross-Wilson, who will lead our global communications starting in December.

From one Swedish icon to another – Olivia Ross-Wilson joins us as our new head of global communications fresh off a ten-year spell with IKEA. There she started as head of sustainability communication in 2011, before becoming head of communications for Ingka Group (the biggest of the twelve franchisees that operate IKEA stores) in 2016.
As the head of communications at Ingka Group, Olivia is a member of the leadership team and leads a team and matrix of over 300 people across 30 countries. Her responsibilities include the strategic long-term positioning of IKEA, as well as leading the communication across areas including key brand marketing activities, PR, internal communication, public affairs, in-house production and strategic business communication, to name a few.
“As a long-term fan and customer of Volvo, I am super excited to be joining the company,” Olivia said. “The world needs brands and companies like Volvo to thrive for the future, so I look forward to contributing however I can to the company’s inspiring journey and to the success of the electrification strategy.”
Before joining IKEA, Olivia worked in various PR and marketing roles in London between 1998 and 2009, including for the retailer Marks &amp; Spencer and agency side for brands such as Starbucks, Delta Airlines and Carlsberg. During this time she also founded her own communication consulting company, advising clients such as Coca-Cola and Mulberry.
In 2009, she moved to New York and joined the Clinton Foundation and Bloomberg Philanthropies, organisations led by former US President Bill Clinton and Mike Bloomberg, as the global communications director for the Clinton Climate Initiative. In this role, Olivia was in charge of global strategic communication, including branding, PR, donor marketing, digital communication and events.
“We want to give our warmest welcome to Olivia,” said Hanna Fager, head of corporate functions. “She is a modern leader with a deep and wide-ranging understanding of strategic communication, bringing valuable experience as we move towards becoming a leading premium electric car company. To cap it all, she knows the ins and outs of working with a brand that, similarly to us, has a rich Swedish heritage and creates products that are part of people’s everyday life all over the globe.”
Olivia takes over the role after Nikki Rooke, who left the company during the summer having chosen to pursue new opportunities in the UK, after leading our global communications operations since 2019.
“We would like to thank Nikki for her contributions to our continued success and I wish her all the best in her future endeavours,&quot; said Hanna Fager.

Meet our new head of communication

Today we celebrate our best half-year results in terms of sales and operating profit in our 94-year history.

We had a record first six months in terms of sales, driven by strong demand for our SUVs and our Recharge-badged electrified cars. Today, we’re happy to report that our strong performance has also translated into a strong financial result.
To briefly recap our sales in the first half: we sold 380,757 cars around the globe. This was the best half-year performance in our history. It’s an increase of 41 per cent compared to the pandemic affected period in 2020 – and the company also saw strong growth of 12 per cent compared to the first six months of 2019 – a more relevant comparison without the pandemic disruption. Our 12-month rolling sales volume is approximately 775,000 cars, just shy of the 800,000 target we set 10 years ago.
Selling all those new cars generated revenue of 141 billion SEK, an increase of 26.3 per cent. Those better sales and revenues also translated into a higher profit, which was boosted further by cost efficiencies and positive results at our affiliated companies. The operating profit of 13.2 billion SEK is the best we ever reported for a financial half year. The operating margin came in at 9.4 per cent.
Not everything went our way: the global shortage of semiconductors posed a challenge to us in the first half. But we adapted production and shifted priorities in line with customer demand in all plants, which meant that we could reduce the impact on customer deliveries.
“The company continued to grow strongly despite the industry-wide semiconductor shortage, but more importantly, we demonstrated that we are a leader of the ongoing transformation in the automotive industry,” said Håkan Samuelsson, chief executive of Volvo Cars.

Throughout the first half we also took additional steps towards our all-electric future. Recharge cars are now a quarter of our global volumes, and that makes us the leader among traditional premium car makers when it comes to share of sales for chargeable cars.
As part of the move towards full electrification, we launched our second fully electric model, the Volvo C40 Recharge. At the same time, we firmed up our strategy of online sales to meet changing consumer behaviour. From now on, all fully electric models will be available exclusively through volvocars.com, and customers can order at their place of preference; from their home, at a Volvo studio, or together with a retailer. We are now operational with online sales in several markets, with transparent and flexible consumer offerings including care packages of service, wear and tear, as well as insurance. Volvo Cars’ subscription offering, Care by Volvo, had a fivefold increase in the first six months to over 10,000 contracts.
Securing sustainable batteries is key for our company’s transformation. Volvo Cars is therefore planning to join forces with Northvolt as a strategic partner for joint development and manufacturing of next generation battery cells.
To ensure focus on electrification, we’re also carving out our internal combustion engine operations into a new unit, Aurobay, in which Geely Holding will be a main shareholder. Through Aurobay, Volvo Cars will realise synergies as well as secure a supply of competitive combustion engines for our hybrid powertrains until our company is fully electric.
In May, our Board announced that it is evaluating a possible initial public offering (IPO) on Nasdaq Stockholm. The evaluation process continues.
Håkan Samuelsson said: “Volvo Cars has a decade-long track record of successful transformation. The car industry is changing more than ever and we have a strong determination to be the fastest transformer.”

2021 half-year financial results – record performance

In April Volvo Cars set an industry benchmark as the only brand with its entire vehicle lineup earning a 2021 IIHS Top Safety Pick Plus award in the U.S.

Our 2021 lineup has been on a roll over the past year, picking up not one, not two, but 15 Top Safety Pick Plus (TSP+) honors. This recognition from the Insurance Institute for Highway Safety (IIHS) is a highly coveted distinction awarded to vehicles that provide the highest level of safety.
What makes this even more significant? The vehicle that brought our portfolio over the finish line is our XC40 Recharge – our first pure electric car.
The XC40 Recharge is the first fully electric small SUV on the road to achieve TSP+. This shows our customers that, as Volvo transitions toward our future as an electric automaker, our commitment to safety is as strong as ever.
Our latest TSP+ benchmark also adds to the record we set last month for achieving the most single-year TSP+ awards earned by any brand since the programme's inception in 2013.
We’re proud that our cars are best-in-class when it comes to safety, but what precisely earns us – or any manufacturer, for that matter – the coveted designation?
As you'd imagine, the qualifications are thorough.
In 2021, the TSP award requires &quot;good&quot; ratings in all six IIHS crashworthiness tests. This includes driver- and passenger-side small overlap front, moderate overlap front, side, roof strength, and head restraints. Winners must also be available with &quot;good&quot; or &quot;acceptable&quot; headlights, and a front crash prevention system that earns &quot;advanced&quot; or &quot;superior&quot; ratings in both vehicle-to-vehicle and vehicle-to-pedestrian evaluations.
Taking it a step further, to qualify for &quot;Plus,&quot; vehicles must also come with &quot;good&quot; or &quot;acceptable&quot; headlights across all trim levels and packages.

&quot;Regardless of body style, engine or trim, every Volvo offers innovative protection in a crash,&quot; said Anders Gustafsson, President and CEO of Volvo Car USA. &quot;We are proud that IIHS has recognised this by awarding a Top Safety Pick Plus to every vehicle we produce today. No other company has been awarded this honor across all carlines in 2021.&quot;
As of today, these cars – which comprise our entire U.S. lineup – are our proud TSP+ honorees:

Volvo XC40 P8 Recharge
Volvo S90
Volvo S90 Recharge
Volvo V90
Volvo V90 Cross Country
Volvo V60 Cross Country
Volvo S60
Volvo S60 Recharge
Volvo V60
Volvo V60 Recharge
Volvo XC40
Volvo XC60
Volvo XC60 Recharge
Volvo XC90
Volvo XC90 Recharge

Top Safety Pick Plus award makes history

In our new, ground-breaking policy, we’re opting all Volvo Cars employees across the globe into 24 weeks of paid parental leave, as of April 1, 2021.

The Family Bond by Volvo Cars is our new all-gender, paid parental leave policy – with this, we give all Volvo Cars employees with at least one year's service 24 weeks of parental leave at 80 per cent of their base pay by default.
&quot;This is more than a new parental leave policy for our employees – it's the embodiment of our company culture and values,&quot; says Hanna Fager, head of corporate functions.
The global policy is inspired by national legislation in our home market of Sweden, and it's more inclusive and supportive than many existing policies around the world. This is the case for both the US and China, where many of our colleagues live.
It applies to either parent and is suited for a diverse variety of family types, as it includes adoptive, foster care and surrogate parents, as well as non-birth parents in same-sex couples.
On the whole, this is a striking contrast to some countries' policies, where new parents might get no paid leave, or where certain groups of parents are excluded. The latter is particularly true for fathers.
&quot;We want to create a culture that supports equal parenting roles for all genders,&quot; says our CEO Håkan Samuelsson. &quot;When parents are supported to balance the demands of work and family, it helps to close the gender gap and allows everyone to excel in their careers.&quot;
By providing equal career opportunities for all our colleagues, we believe that our workforce can become more inclusive and diverse. In turn, this will not only make us a more attractive employer, but also perform better – both as individuals and as a company.
&quot;We want to lead change in this industry and set a new global people standard,&quot; says Hanna Fager. &quot;By opting all our employees into paid parental leave we narrow the gender gap and we get a more diverse workforce, boosting performance and strengthening our business.&quot;
We have been driven by our values for a long time, and this is another way for us to prove it. Today, people choose brands that not only express the same values that they have, but also show it through concrete actions. Our belief is that the policy is not only the right thing to do from an equality perspective, but also from a business perspective.
&quot;We have always been a family-oriented and human-centric company,&quot; says Håkan Samuelsson. &quot;Through this parental leave policy, we are demonstrating and living our values, which in turn will strengthen our brand.&quot;

When studying the outcome of our EMEA parental leave pilot, we found that employees appreciated the policy for being available to all genders, inclusive and adaptable to personal needs.
When launching the policy globally, we want to build on these highlights and encourage even more of us to take up the offer. Going forward, we want to make parental leave for both parents the new 'norm'.
To encourage uptake of parental leave, we are focusing on how we talk about it within the company. By presenting the 24 weeks parental leave as a pre-selected option, we want to create a 'default effect' – this means that we are highly likely to stick with pre-selected options. Ambiguous language, such as 'up to 24 weeks', is avoided as we tend to predict negative outcomes when there is uncertainty.
By using an approach like this, alongside several other communication-based measures, we want to remove confusion and cultural barriers, and provide parents with certainty.
Taking the 24 weeks is not mandatory, but we want employees to feel fully supported in taking the full leave.

<a rel="noopener noreferrer" href="https://www.linkedin.com/posts/volvocars_lifeatvolvocars-activity-6782511953542807552-0s0Y" target="_blank">You can watch the Family Bond at Volvo Cars film&nbsp;here. </a>
&nbsp;
Additional notes:&nbsp;This global policy is now the minimum standard for parental leave across Volvo Car Group. In any countries where the local regulations offer a more generous parental leave, local regulations will take precedence.
&nbsp;

Volvo Cars: Parental leave for everyone

We smashed up 10 cars with a 30m crane drop so emergency services could train for rescuing people from severe traffic wrecks.

“Does it have to be a new car?” an attending cameraman said as he watched a shiny new XC40 being hoisted by a crane 30m (100ft) into the sky – to later freefall and smash into the ground. “I’m happy to give you my old car to crash if you let me have that new Volvo.”
He was joking – but his offer was sincere. Little did he know he was focused on the main reason why we recently worked with our friends at emergency services to do a 30m crane drop with 10 new Volvo cars – each car dropped several times to ensure maximum damage.
Emergency services personnel need to practice their various methods for extricating people from severe car crash scenes. Jens Molin, who has worked as a firefighter and extrication specialist for 20 years, explained how working with new cars is critical to emergency services teams.
“A problem we have as a fire brigade is that when we train normally, we usually get our cars from scrapyards. These cars are most often 10 to 20 years old, and they work very differently from the cars of today, regarding safety, hardness in the steel and how they work when we try to open them up. So it’s extremely important for us to work with new cars to test our abilities.”
That’s (one reason) why we couldn’t swap out the cameraman’s old car for the new Volvo – damaging new cars with the latest safety structures and technology was critical to what needed to be learned that day.

Our Safety Centre, for twenty years, has conducted on average one physical crash test per day – the type you might already know about, with crash test dummies – but these tests are very specific and our cars’ safety structure is so robust that, in most crash scenarios, the emergency services people can simply open the door of a new Volvo to access the occupants.
So we were very interested in the (fun) challenge of answering the question: how can we damage our new cars enough for them to be suitable for emergency services training? Why not try something extreme, like dropping each car several times from a 30m crane?
It was the first time we’ve dropped our cars from a 30m-high crane. Only by doing this could we create enough deformation to adequately simulate the damage found in the most extreme crash scenarios, like single-car accidents at very high speed, accidents where a car hits a truck at high speed, or when a car takes a severe hit from the side. It’s these kinds of severely damaged cars emergency services needed to test their skills and new equipment, to learn how to deal with the most extreme accidents; the ones where survivors need their help most.
Why is practicing such scenarios so important? When it comes to car crashes, emergency services heroes often talk about the ‘Golden Hour’ – getting severely injured people to the hospital within an hour of a crash occurring can be the key to their survival.
“We have been working closely together with the Swedish rescue services for many years,” says Håkan Gustafson, a senior investigator with our Traffic Accident Research Team. “Because we have the same goal: to have safer roads for all. We hope no one ever experiences the most severe accidents, but not all accidents can be avoided. So it is vital there are methods to help save lives when the most severe accidents do happen.”
But there’s only so much that words can do to explain something this spectacular, so see it for yourself in this video that says more about the challenges emergency services personnel face in their daily work.

Watch us drop new cars from a 30m crane

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