Volvo Group

Our day started with a tour of Volvo Cars and its factory. We got an inside view of how their vehicles are produced and the steps that are needed throughout the process. We were then able to go and have a sit down with Martin Lundstedt who is the CEO of Volvo Group. Their core activities are the production, distribution, and sale of trucks, buses, and construction equipment, and they also supply marine and industrial drive systems and financial services. 

Martin discussed their future operation and their transition from diesel to cleaner energies. They plan on improving by implementing key drivers and by delivering on their financial ambition and strategic directions. Their key drivers are decentralizing profit and loss accountability, service growth priority, agility, and flexibility in production volumes. To deliver their financial ambition and the strategic direction they will do so by gradual and consistent earrings improvement and refunding the volatility in earnings and cash flow. The key trends that they are leading toward are sustainability with a focus on decarbonization and the geopolitical landscape. 

Their efforts in leading the change within the industry would be through decarbonization through logistic efficiency and embolism enabled by digitization. They are planning on developing vehicles that rely on batteries, hydrogen fuel cells, combustion engines, synthetic fuel, and hydrogen. A fascinating question that I asked was in regards to their efforts of hydrogen use and the lack of infrastructure that is present. Hydrogen vehicles are very similar to diesel vehicles as their ranges are pretty comparable but the current lack of hydrogen fueling locations is a problem. He explained that the use of hydrogen vehicles, although in the process, won't be fully in use for another 20 years, and by that time the infrastructure will catch up and allow the use of hydrogen vehicles to be prevalent. Their efforts to lead the industry in the decarbonization of vehicles will allow all others to follow and create a more sustainable environment.