EU Public procurement Ulf Gustafsson Strong global position 1. Evobus 2. - 3. Yutong 4. Tata 5. Ashok Leyland 6. MAN 7. Irisbus 8. Scania 9. King Long Sales 2010 Volvo Buses 2 Volvo Buses global sales N. America Total 8 559 Volvo 3 652 Europe MS 23,2% Total 23 679 Volvo 2 910 MS 11,4% International S. America Total 113 640 Volvo 4 130 (incl JV) Total 20 823 Volvo 3 652 MS 5,1% MS 17,6% Global Bus Market 2011 > 12 tons NA excl. school buses. SA and Mexico >15 tons Volvo Buses 3 2/3 of our sales in Europe Distribution of sales is purchased under the Public Procurement rules. Rules that enable free trade Europe is a prerequisite, especially for 20% a company with a small home Sweden (home market. market) 3% Other 77% Volvo Buses Departement, Name, Document name, Security Class 4 Date Comments on the modernization of the EU public procurement framework VBC can support: • New award criteria based on MEAT in support of common societal goals (Linked to Europe 2020 Strategy) • Innovation partnerships to give incentives to develop innovative solutions • Establishment of national oversight bodies in charge of monitoring and controlling implementation activities • Simplification • Lifecycle cost concept (Sector specific “Green Vehicle Directive”) Volvo Buses Department, Name, Document name, Security Class 5 Date Main areas of concern ü Appeals of taken decisions. • The use of appeals has diminished lately, hopefully is this trend continuing. ü The implementation of Green Vehicle Directive • The monetized option is rarely used as part of the procurement. Trough UITP has the bus industry developed methods to measure fuel consumption which enables the use of the method. • The alternative implementations of the directive is opening up for a large number of unique local requirements, resulting in more expensive solutions. Not necessarily supporting the main aim of the directive. We support the monetized version of the green vehicle directive and we are developing vehicles to perform according to the directive. Are we barking up the wrong tree? Volvo Buses .