Volvo: Integrated Innovation for Climate Change


On the afternoon of November 16th, on the 50th floor of the Beijing Capital Building, Fredrik Hogberg, president of Volvo Truck Greater China, shouted out of the window with a finger and shouted: “Is the sky blue?” Looking down at his hand, the entire city of Beijing is shrouded In a gray fog.

“This is not only happening in Beijing. It is the same in many parts of the world. If we want to have a bright future, we must work hard for it now.” Heberger told BusinessWeek, “If we don’t If we work hard, the air outside the window will become worse and worse."

China is paying attention to the environmental costs brought about by economic development. Volvo believes this coincides with the values ​​of its own company. Heberger hopes to spread this idea. He said that as one of the earliest participants in the automotive environmental protection project, after setting environmental protection as one of the three core values ​​in 1972, the Volvo Group put forward a series of green environmental protection issues: from global gases that affect the climate, such as gas emissions. Problems, local waste disposal at production plants, climate, air quality, noise, traffic jams, use of natural resources, etc. Through effective material management and the effective use of fuel in transportation, transport will not only become more efficient, but also greatly improve the current climate conditions.

In the Chinese market, Volvo's various technological explorations on environmental protection will be integrated into its comprehensive logistics solutions for its customers. He Berger repeatedly stressed to Business Week: "We have to do everything we need to be closely linked and become a systematic value chain, rather than simply selling a truck."

Despite experiencing a full recovery in 2006 and explosive growth in 2007, in the field of commercial vehicles in China, especially heavy trucks, due to the improvement of environmental standards, the future of various domestic companies seems to be shrouded in a cloud of fog. There are indications that the development of commercial vehicle industry policy is increasingly closer to European standards. At present, the National III emission standard is already equal to the Euro III emission standard, and Beijing plans to implement the National IV standard next year. In addition, the development of China's safety regulations based on European automotive safety standards is also under discussion. In the future truck market, environmental protection will no longer be a concept, it may cause changes in the pattern. For Volvo, environmental protection will be its "fog lamp" to illuminate the way forward.

7 eco-cars using different alternative fuels

From a global perspective, Volvo is considering the future of combustion and transmission systems from a well-to-wheel perspective. Its goal is to apply energy from the extraction of energy to the entire process of the wheels of vehicles. Enabling energy efficiency as high as possible while emitting as little carbon dioxide and other materials as possible.

The piston engine is the foundation for all development work on the Volvo Group's drivetrain. Almost all piston engines are currently powered by diesel fuel for heavy-duty vehicle applications. Heberger said: "Volvo has made many improvements to the existing diesel engines. From 1975 to 2005, the actual fuel consumption has been reduced by 37%. We plan to further reduce fuel consumption by 15%."

In addition, diesel engines are also an efficient energy conversion device that can adapt to a wide variety of alternative fuels. In this regard, Volvo further evaluates alternative fuels based on seven criteria, including climate impacts, energy efficiency, land use efficiency, fuel potential, vehicle modifications, fuel costs, and fuel infrastructure.

The latest result of Volvo's efforts is seven eco-friendly vehicles that use different types of alternative fuels. The seven kinds of fuels are biofuels, biogas, biogas + biofuels, dimethyl ether, methanol/ethanol, synthetic diesel, hydrogen + biogas, plus a modified diesel engine, making these trucks not harmful when driving Carbon dioxide gas.

The gradual transition from fossil fuels such as oil and gas to renewable fuels is the direction Volvo Trucks has been working on, but it will undoubtedly be a difficult transition. As with other companies' exploration of alternative fuels, Volvo's trucks are very expensive, although their design costs are not very high. In fact, even in the ordinary truck industry, a heavy truck with a load of over 20 tons will have a domestic vehicle cost of around 300,000 yuan, while a Volvo truck will have to reach a minimum of more than 600,000 yuan, which is even higher than the price of two domestic cars. .

However, in He Berger's view, when these trucks can achieve mass production, the price can naturally be reduced. "Volvo pays more attention to investing in the entire value chain," he said. "We are prepared for what the Chinese legislature or government thinks is the best fuel for China."

From a longer-term perspective, persisting in improving energy efficiency and widely promoting technological advances in fuel blend technology and fuel production will have a major impact on the realization of zero-emission CO2 emissions. "The Volvo Group can't say exactly how much CO2 will be zero-emission fuel or when it will appear. We don't know that others can't know it, but we think we have reason to view it optimistically." Volvo Group President And Chief Executive Officer, Leif Johansen, said, “The Volvo Group's own history of development shows that what may seem impossible at a certain point in time is likely to become a reality several years later. This is related to the environment. Other areas have been proven, such as exhaust emission control, energy efficiency and mixed fuel technologies. The Volvo Group firmly believes that CO2 zero-emissions transportation will also go through a similar development process."

Integrate environmental protection into comprehensive logistics solutions

"We are concerned not only with the price, but also how to continue the three core values ​​of Volvo." He Boge said. In the Chinese market, Volvo focuses on implementing environmental protection concepts based on comprehensive logistics solutions.

The comprehensive logistics solution is Volvo's 2005 China-oriented transportation management model oriented to customer needs. The core is "supply chain optimization." Under this model, Volvo can provide advice on logistics, distribution, logistics information systems, transportation and distribution, inventory management, logistics organization, etc. to the actual conditions and transportation characteristics of different industries and companies.

According to statistics from the China Logistics Information Center, total social logistics in China reached 59.6 trillion yuan in 2006, an increase of 24% year-on-year, far exceeding the growth rate of 11.1% in GDP for that year. China's port throughput and container throughput have ranked first in the world for three consecutive years. Currently, there are more than 700,000 domestic registered logistics companies. Starting from the goal of forming an efficient supply chain with collaborative customers, the innovation of logistics service content and transportation methods is an effective means for Chinese logistics companies to increase their core competitiveness.

In Hoberg's view, Volvo's comprehensive logistics solution is a part of the customer's own solution launched by the logistics company. He explained: "We are a supplier of logistics companies. In some areas, logistics companies may be more professional than us, such as inventory or mobilization of electronic systems, but our solutions can be well integrated into their solutions."

In Volvo's solutions, improving efficiency, reducing fuel consumption, and reducing exhaust emissions are all factors that contribute to environmental protection. Free training for drivers is an important part of this. In China, Volvo has a special training center to provide training for drivers, customers and distributors. For example, try to avoid rapid acceleration and deceleration when driving, and do not use the high engine speed to achieve acceleration. Acceleration should be achieved through upshift operation. Vehicles do not take off for long periods of time. This can cause lubrication of gearbox shafts and gears. bad.

He Berger explained: “In our industry, the driver plays a very important role. The driver's correct driving behavior can make the entire driving process safe, and the driver's correct operation can greatly reduce energy consumption, thus The role of the environment is protected.” According to data from Yum Logistics, trained drivers can save 3 liters of fuel per 100 kilometers, and on a 150,000-kilometer-a-year basis, they can save fuel by 4500 liters, equivalent to RMB 20,000 yuan. . As one of the Volvo customers, Yum Logistics is mainly responsible for the distribution of food ingredients such as KFC and Pizza Hut.

Taking the food raw materials distribution from Shenyang to Harbin as an example, due to the special requirements of the catering industry, a total of 1,124 kilometers of journeys will need to arrive on the same day. To this end, Volvo's comprehensive logistics solutions help the company to carry out precise calculations on all aspects, from warehouse loading to on-the-way transportation, to batches of unloading at various stops, and so on, and so on, with a set of scientific and reasonable solutions, reducing all aspects Waiting time. Yu Wang, a manager of the Shenyang team of Yum Logistics, told reporters: “We can finally control the one-way operation time within 8 hours. This also includes the rest time of the driver. The fuel consumption per 100 kilometers is also controlled within 25 liters.”

Chinese strategy

When Volvo formulated its global strategic plan, it divided its joint ventures and cooperation in China into three strategic stages. The first stage was China’s “focus” strategy, which focused on China as a focus, and the second stage was a “three pillars” strategy. That is, the global market for trucks is divided into three major parts: Europe, North America and Asia. The center of Asia is China. The third phase is to move the production bases in Asia to China. The Volvo Truck Asia headquarters moved to Beijing in early 2003, meaning that the Volvo Group has completed the strategic tasks of the first two phases and entered the third phase of the plan.

He Berger emphasized that Volvo has a very strict evaluation standard for suppliers. "We take a life cycle assessment approach to evaluate the impact of the entire production process on the environment and minimize or eliminate the use of harmful chemicals in truck parts." ".

In terms of dealers, Volvo has also developed a manual of operating standards, which not only provides methods such as how to receive customers, how to conduct operations, and appearance management, but also includes rules and regulations in the field of environmental protection. In order to minimize the impact on the environment, the manual has detailed regulations on how to deal with used fuel, batteries, and batteries. As a mandatory standard, Volvo will take regular and irregular inspections to understand the dealer's performance. If dealers do not comply with the manual or perform poorly, it may lead to termination of the partnership. "This is actually a closed circular management environment." He Berger said, "This is what we need to work with the distributors to complete."

The after-sales service network is considered part of the Volvo extension. In He Berger's view, the after-sales service network needs to have adequate spare parts supply, good truck repair skills, and help customers measure the appropriate time to maintain the truck. At present, Volvo Trucks has established a service network composed of a number of maintenance service centers in major highway cities in China. In July 2006, the company further introduced the global "Service Agreement" blue card program into the Chinese market. This program enables more domestically used Volvo trucks to achieve "million kilometers without major repairs." These initiatives to help Volvo Trucks improve their performance are also viewed as an environmental effort because of the benefits to the environment.

In 2006, Volvo Trucks delivered more than 105,000 vehicles globally, a year-on-year increase of 2%. The Chinese market has become the biggest bright spot with an increase in sales of 28%. In addition, the market share of Volvo including domestically produced trucks and imported cars in China rose from 11% in 2004 to 29%, ranking first among all imported brands. In the first half of this year, the number of Volvo truck sales orders further increased significantly, which was a half of that in the same period of last year. According to forecasts by foreign institutions, in the next 3-5 years, the high-end demand in China's heavy-duty truck market will surely be even more robust. By 2010, heavy-duty trucks with more than 15 tons will account for 70% of the Chinese truck market.

According to Jorma Halonen, acting CEO of Volvo Group, Volvo is working with China Dongfeng Motor (Group) to develop a truck that can meet China's environmental protection and other standards. "The Chinese government has decided to implement the Euro III emission standard from 2010 and the Euro IV emission standard from 2012, which gives Volvo the opportunity to enter the market," he said.

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