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2008/09 Corporate Reportwith SUSTAINABILITY

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2008/09 Corporate Reportwith SUSTAINABILITY Solberg Solberg Volvo Car Corporation 2008/09 CORPORATE REPORT WITH SUSTAINABILITY Volvo Car Corporation PA/PV 501252801-09 EN CONTENTS This is Volvo Cars 1 Important events 2 CEO comment 3 Company philosophy 4 Sustainable business – overview and focus 6 Global situation 8 Stakeholders 10 Case 1 – Focus on safety 11 Objectives, results and activities for selected focus areas 12 Case 2 – Focus on environment 18 Operations 19 Products 20 Case 3 – Focus on profitability 21 Employees 22 Case 4 – Focus on employees 24 Suppliers 25 Company facts 26 Sustainability facts 30 Reporting principles 33 Historical milestones 34 Event calendar 2009/2010 35 Management Team 36 Contact information VOLVO CAR CORPORATION – CORPORATE REPORT 2008/09 THIS IS volvo CARS THE WORLD OF VOLVO CARS Component manufacturing Car production Skövde, Sweden Gothenburg, Sweden Floby, Sweden Ghent, Belgium Olofström, Sweden Uddevalla (Pininfarina), Sweden Chongqing (Changan Ford), China Headquarters, product develop- ment, marketing, administration Gothenburg, Sweden Design centers Gothenburg, Sweden Barcelona, Spain Assembly plants Camarillo, California Kuala Lumpur, Malaysia Bangkok, Thailand Represented in approximately 100 countries worldwide 2,400 local dealers Employees (Dec 31 2008) 22,732 Car production 2008 % 2007 % Gothenburg, Sweden 165,129 45.1 193,370 41.9 Uddevalla, Sweden 12,800 3.5 20,306 4.4 Ghent, Belgium 181,425 49.6 240,192 52.1 Chongqing, China 5,811 1.6 6,313 1.4 Assembly plants Malaysia 474 0.1 486 0.1 Thailand 610 0.1 441 0.1 Total: 366,249 461,108 1 VOLVO CAR CORPORATION – CORPORATE REPORT 2008/09 IMPORTANT EVENTS LAUNCH OF CITY SAFETY AND DRIVe CARS The XC60 is launched at the motor show The new President and CEO Stephen Odell A taste of the next generation of cars is shown in Geneva in March 2008 – an entirely new joins the company in October. He comes most in January 2009 at the Detroit motor show Volvo in a new segment for Volvo Cars. The recently from Ford of Europe and has worked with the Volvo S60 Concept car. This provides XC60 is Volvo’s first crossover vehicle and is at Ford since 1980. a clear indication as to what the new Volvo being launched in the fastest growing seg- S60 will look like when it is launched during ment of the car industry. Presented along with At the October 2008 motor show in Frank- 2010. With the S60 Concept, a pioneering this model was City Safety – a world-class furt an environmental product offensive is new safety feature is unveiled. Included is a safety system. City Safety helps drivers avoid unveiled. The first generation of environmen- function that can detect a pedestrian that is collisions at low speeds and is a standard fea- tally adapted DRIVe cars are available and stepping in front of a car – and activate the ture in all XC60 cars. Volvo is best in class. In March 2009, Volvo full braking force if the driver does not react Cars unveils its second generation of DRIVe to the danger. The largest redundancies in the company’s products, expanding the offer to include large history are announced in June and October cars. All are best in their market segments. 2008. A total of 6,000 people will be leav- With the Volvo C30, S40 and V50, Volvo Cars ing the company. The cutbacks coincide with has taken its first step towards the develop- an increasingly tough global economy that ment of hybrids using a Start/Stop system results in a weak market situation. The entire that enables the engine to be shut off when a car industry is hit hard by declining demand, car is at a stand still, for example at a red light resulting in lower profitability, and Volvo Cars or while waiting in traffic. responds forcefully. 2 VOLVO CAR CORPORATION – CORPORATE REPORT 2008/09 CEO COMMENT GOOD OPPORTUNITIES FOR SUSTAINABLE PROFITS Volvo Cars continues to pursue aggressive and as such an important competitive advantage development of new products and technologies for any business. For us, it is an integral part of that meet consumer demands for fuel economy our business and cannot be seen as an isolated and low emission levels. 2008 saw the introduc- focus area. Our approach to sustainability is tion of the first generation of the DRIVe range, divided into three sections in the report: Safety, Volvo Cars’ umbrella name for investments in low- Environment and Profitability. Safety and Envi- ­­­­­­emission vehicles. To date no less than seven ronment are cornerstones in our business and products are offered that are all number one in represent the values of the company. To secure their respective segments in fuel efficiency and a successful business, our values and innova- carbon dioxide emission levels. And our Flexifuel tions must translate to the needs and desires offer continues to be one of the broadest in the of the consumers in the market. That is how we market with five models that can be driven on will deliver sustainable profitability in the years bioethanol. We will continue to invest at a high to come. pace in green technologies to meet the need for sustainable mobility in the years to come. For us at Volvo Cars, sustainable mobility “ I BELIEVE THAT IT IS goes beyond emission levels and fuel economy. PERHAPS MORE IM- To meet the needs of a society to move freely PORTANT THAN EVER without sacrificing long-term human or ecologi- BEFORE TO WORK cal values, we believe safety considerations must PROACTIVELY WITH be fully integrated with our efforts to improve SUSTAINABILITY ISSUES environmental performance. We are leading in AND DEMONSTRATE safety, and our latest car – the all new XC60 TANGIBLE RESULTS.” crossover – is the safest Volvo to date. The City Stephen Odell, Safety technology that can help to avoid low President and CEO Volvo Car Corporation speed collisions, and is standard equipment 2008 proved to be a challenging year for Volvo in the XC60 car, has won a number of global Car Corporation and indeed the car industry as a awards during the year and impressed custom- whole. A global economic crisis impacted heavily ers around the world. It is evident that we can never deliver our on industry volumes and car makers have had The S60 Concept revealed at the Detroit sustainability efforts on our own. In the report to make some difficult decisions to adapt their motor show in January 2009 shows the next we focus on the importance of partnership productions and cost levels to the rapidly chang- generation of Volvo products to come. While and cooperation with other stakeholders to ing market conditions. Our sales were down by still being committed to sustainable mobility create new solutions. I would also like to take 18.3 percent compared to the record year 2007 with world-class safety technology and excellent the opportunity to reiterate that we continue with 374,297 cars sold. A significant restructur- environmental performance, this car also takes stay committed to the ten principles of United ing programme was announced in October and us to the next level in stunning Scandinavian Nations Global Compact. we had to reduce our personnel levels by nearly design. I have very high expectations for the pro- I hope you enjoy reading about our work for a 6,000 people. As we have moved into 2009 we duction cars which will be launched in 2010. sustainable future and I welcome any comments continue to face a difficult market situation with This year’s Corporate Report has been inte- or suggestions you may have. lower sales, increased competition, and disad- grated with our sustainability reporting and vantageous currency fluctuations. And despite a communication. I believe that it is perhaps more pressed financial situation, the need for further important than ever to work proactively with investments in research and development to sustainability issues and demonstrate tangible meet the climate change challenges is bigger results. Progressively, the issues are also becom- Stephen Odell than ever before. ing of increasing significance for end customers President and CEO 3 VOLVO CAR CORPORATION – CORPORATE REPORT 2008/09 COMPANY PHILOSOPHY A SUSTAINABLE COMPANY PHILOSOPHY Volvo Cars has a company philosophy that is the premium market segment: Premium Qual- The power of “we” is the result of cooperation marked by conviction, values and focus on a ity, Customer Experience and Driving Dynamics. which is based on integrity, courage and diver- number of targeted areas. This company phi- On the middle level are the areas in which the sity of thought. Committed employees are the losophy has a distinct business approach with a ambition is to set Volvo Cars apart from other key to success and the company views diversity strong focus on employee contribution. The goal carmakers: Modern Scandinavian Design and as a means of achieving competitive business of Volvo Cars is to sell cars with good profitability Environmental Care. At the top of the pyramid is, advantage. By continuously striving to develop in the premium segment. Those values that dis- of course, Safety – the area in which Volvo Cars the work culture in accordance with the work tinguish Volvo Cars from its competitors are the is a leader, not least in perception. The combina- culture pyramid, the ability to secure sustainable company’s most important business assets by tion of all levels is Volvo Cars’ strength. business development will increase. far. Product offerings include world-class safety These two diagrams reveal a lot about and environmental care. These are values that Work culture the way in which sustainability is woven into have evolved in harmony with Swedish culture The work culture at Volvo Cars is also illustrated Volvo Car Corporation’s business opera- and Swedish values for life in general.
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