Volvo Cars joins forces with hometown Gothenburg to help create climate-neutral city
GLOBAL ANNOUNCEMENT
With the aim of achieving a climate-neutral city by 2030, Volvo Cars teams up with the City of Gothenburg in Sweden for the creation of new urban zones that will be used as testbeds for future sustainable technologies.
The initiative, called Gothenburg Green City Zone, aims to establish an area inside Scandinavia’s largest port city that is completely emission-free, with a variety of climate-neutral transportation modes and a connected infrastructure.
Using a real city as a testing ground will enable Volvo to accelerate development of technologies and services in the areas of electrification, shared mobility, autonomous driving, connectivity and safety. As part of the testbed, Volvo plans to run robotaxis operated by its fully-owned mobility provider M, within the zone.
“Essentially, we initiate a project that intends to limit the number of cars in the city – which is fully in line with our company’s purpose,” said Håkan Samuelsson, chief executive of Volvo Cars. “This is already proven by our investment in the shared mobility service M, who have developed proprietary A.I. technology to improve efficiency and utilization. We want to be involved in creating the cities of the future and keep them livable. This initiative gives us an opportunity to do that and take on responsibility in our own hometown at the same time.”
Examples of technologies to be tested include geo-enabling solutions and services ensuring that cars in the zone operate in electric-only mode and remain within speed limits, as well as traffic infrastructure that can connect to active safety features in cars and share information between road users.
“We want to use our knowledge and technology to help create a future city that is electrified, connected, shared and climate-neutral,” said Henrik Green, Chief Technology Officer at Volvo Cars. “This is an opportunity to lead by example, by testing new technologies and services in a live large scale environment, we can show that if it is possible here, it is possible anywhere.”
Other potential examples include fully electric mobility hubs; a complete, easy-to-use charging network for electric cars; and autonomous taxis.
The main obstacle to climate transition is not a lack of climate-friendly and smart technologies, but the capacity to implement them. The transformation requires a holistic approach to foster innovation and a deep and continuous collaboration between all stakeholders.
Since Volvo also has an active role in the planning process of this initiative, they can ensure that, from the start, the zone integrates its electrified mobility services and develops them in a live environment, increasing the impact on sustainability goals.
During 2020, M has through its proprietary AI technology proven to reduce congestion and lower emissions in Gothenburg, with one car from M now replacing 8 privately owned cars in the city. Similar to the City of Gothenburg’s aim, Volvo Cars is continuously reducing its carbon footprint, with the ambition to be a climate-neutral company by 2040. To realise this goal, the company has devised a number of objectives to be completed by 2025.
A few examples include a 40 per cent reduction of its CO2 footprint per car; global sales consisting of 50 per cent fully electric cars, with the rest hybrids; and a 25 per cent reduction of carbon emissions generated by the company’s overall operations, including manufacturing and logistics.
The Green City Zone initiative starts in spring 2021 and will gradually scale up going forward.
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Volvo Car Group in 2019
For the 2019 financial year, Volvo Car Group recorded an operating profit of 14.3 BSEK (14.2 BSEK in 2018). Revenue over the period amounted to 274.1 BSEK (252.7 BSEK). For the full year 2019, global sales reached a record 705,452 (642,253) cars, an increase of 9.8 per cent versus 2018. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales of 705,452 cars in 2019 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding since 2010.
In 2019, Volvo Cars employed on average approximately 41,500 (41,500) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for APAC is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).
Under its new company purpose, Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This purpose is reflected into a number of business ambitions: for example, by the middle of this decade it aims for half of its global sales to be fully electric cars and to establish five million direct consumer relationships. Volvo Cars is also committed to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
About Volvo Car Mobility
Volvo Car Mobility is a wholly owned, independent subsidiary of the Volvo Car Group. The company’s first service M was launched in 2019; a station-based car sharing service offering urban individuals and businesses on-demand access to a car, without having to own one, by using the power of the access economy. The company is located in Stockholm with local offices in Gothenburg and Malmö and employs 150 people.
Volvo Car Mobility is focused on bringing disruptive change to traditional car sharing. M’s proprietary AI platform and vertically integrated technology is central to the business model. By capturing customer behaviors and allocating cars based on data-driven decisions, M provides both an improved customer experience and enables Volvo Car Mobility to operate with both high utilisation and high availability. Reducing the cars in the city.