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Supplying Volvo

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Supplying Volvo IHS Automotive Supplying the OEMs SupplierBusiness Supplying Volvo 2014 edition supplierbusiness.com IHS Automotive SupplierBusiness | Supplying Volvo Contents Introduction .................................................................................................................................................................... 5 Financial Overview.......................................................................................................................................................... 7 First-half 2013 summary ............................................................................................................................................. 7 Product and platform strategy ...................................................................................................................................... 9 Introduction .................................................................................................................................................................. 9 Current major model programmes .......................................................................................................................... 11 V40 .............................................................................................................................................................................11 S60/V60/XC60 ............................................................................................................................................................11 V70/XC70 ................................................................................................................................................................... 12 S80 ............................................................................................................................................................................ 12 XC90 .......................................................................................................................................................................... 13 Future platforms and model programmes ............................................................................................................. 14 SPA ............................................................................................................................................................................ 14 CMA ........................................................................................................................................................................... 16 Powertrain strategy ................................................................................................................................................... 16 New 4-cylinder engines ...............................................................................................................................................17 Purchasing strategy .................................................................................................................................................... 20 Overview ..................................................................................................................................................................... 20 Interview ........................................................................................................................................................................ 22 Lars Wrebo, Senior Vice President of Purchasing and Manufacturing at Volvo ................................................ 22 Introduction and evolution of the purchasing function at Volvo .................................................................................. 22 The role and significance of Geely .............................................................................................................................. 22 Implications for suppliers ............................................................................................................................................ 23 The significance of the new platforms ....................................................................................................................... 23 Size and scale of purchasing function … .................................................................................................................... 25 Developments in China .............................................................................................................................................. 25 Sourcing in Sweden ................................................................................................................................................... 26 Government support .................................................................................................................................................. 27 Supplier assessment .................................................................................................................................................. 27 Supplier finance ......................................................................................................................................................... 27 Directed sourcing, managing tier two suppliers .......................................................................................................... 28 Supply chain security ................................................................................................................................................. 29 Logistics ..................................................................................................................................................................... 29 Implications of the new platforms for manufacturing ................................................................................................... 30 Expanding existing manufacturing operations ............................................................................................................ 30 Reasons for S60 being made in two places … ........................................................................................................... 31 Supplier interview: David Grice, Johnson Controls Sweden AB ......................................................................... 32 Production strategy and manufacturing footprint ................................................................................................... 34 Introduction ................................................................................................................................................................ 34 A growing manufacturing network .............................................................................................................................. 34 Sweden........................................................................................................................................................................ 34 Gothenburg – Torslanda ............................................................................................................................................. 34 Uddevalla ................................................................................................................................................................... 37 IHS Automotive SupplierBusiness COPYRIGHT NOTICE AND LEGAL DISCLAIMER © 2014 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information contained herein is from sources considered reliable but its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted by law, IHS shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. For more information, please contact IHS at [email protected], +1 800 IHS CARE (from North American locations), or +44 (0) 1344 328 300 (from outside North America). All products, company names or other marks appearing in this publication are the trademarks and property of IHS or their respective owners. 2014 edition 2 © 2014 IHS IHS Automotive SupplierBusiness | Supplying Volvo Skovde engine plant ................................................................................................................................................... 37 Floby component plant .............................................................................................................................................. 38 Belgium ....................................................................................................................................................................... 38 Ghent ......................................................................................................................................................................... 38 China ........................................................................................................................................................................... 40 Major new investment ...............................................................................................................................................
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