Industry, innovations and university cooperation, some reflections Jan-Eric Sundgren Volvo Group Senior Vice President Public and Environmental Affairs Jan-Eric Sundgren 24 November, 2008

Short about Volvo Group Business Areas Nissan Diesel Mack Trucks Renault Trucks Volvo Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Jan-Eric Sundgren 24 November, 2008

Global activities 100.000 employees Production in 18 countries, sales in more than 180 countries Jan-Eric Sundgren 24 November, 2008

World Drivers - Volvo Group Economic Social GDI growth / GDI per capita Globalization Consolidation Political Demographics Lifestyle Education World trade liberalization Transport policies Political stability Suppliers 1st, 2nd, . Production Dealers Customers Transport Buyers Technology Legal Environment Innovations electronics, mobile communication, telematics, PC’s Internet Lead times Deregulation Controlled competition Environment Harmonization of laws Green house effect Polluted air and water Oil / gas availability & price Managing waste Jan-Eric Sundgren 24 November, 2008

Redesigning global finance The world economy Redesigning global finance 13 November, 2008 Jan-Eric Sundgren 24 November, 2008

The financial crisis The end of the ”long wawe”???? ? GDP Today ? 1970 1914 1875 1990 1945 1815 1895 1845 1785 An impressionistic interpretation of Schumpeter and Kondratiev Jan-Eric Sundgren 24 November, 2008

The financial crisis The end of the ”long wawe”???? GDP 1970 1914 Fiscal stimulus needed in: Innovations R&D Education Infrastructure ....... 1875 1990 1945 1815 1895 1845 1785 An impressionistic interpretation of Schumpeter and Kondratiev Jan-Eric Sundgren 24 November, 2008

Population (millions inhabitants) approx. 2015 Environmental Challenges Global warming Air quality Mega cities …… …... …... Los Angeles, 14 Beijing, 20 New York, 18 Tientsin, 17 Tokyo, 29 New Delhi, 18 Cairo, 15 Karachi, 21 Mexico City, 19 Shanghai, 23 Lagos, 24 Manila, 15 Bombay, 27 Calcutta, 18 Jakarta, 21 The Environmental Challenges, illustrated with one example here, are on top of our priorities for R&D. We spend around 50% of our efforts on these issues. It is important that we take a sustainability perspective and an integrated approach when we address them. There are many different stake-holders and actors that must work together. The EC has taken many useful initiatives to accomplish that. Sao Paulo, 21 Dhaka, 19 >25 millions 20-24,9 millions 15-19,9 millions 14-14,9 millions Population (millions inhabitants) approx. 2015 Source: UN prognosis Jan-Eric Sundgren 24 November, 2008

Reduced CO2 emissions Increased fuel efficiency Hybrid vehicles, plug-in hybrids (light vehicles) CO2 neutral fuels More efficient logistics, improved load capacity and telematic solutions Renewal of vehicles New and improved public and goods transport solutions Improved infrastructure, eg. for intermodal transport solutions Changed behaviours Jan-Eric Sundgren 24 November, 2008

Solutions require Passionate innovation The fundamental source of increasing wealth in an economy is innovation leading to increased productivity För en koncern som Volvo är teknik och tekniska innovationer kärnan i hela vår verksamhet. Vi bidrar med det vi kan bäst och det vi är passionerade för – teknikutveckling! Teknik är dock inget självändamål – teknik är vad vi använder för att ge våra kunder de produkter och tjänster som svarar mot de krav och behov som formuleras i samhället. Våra kunder och våra produkter möter grundläggande samhälleliga behov – de är med och bygger samhällen och skapar välstånd. Med vårt tekniska kunnande, vår teknikpassion kan vi bidra till att göra transporter av varor och människor säkrare, mer effektiva och mer miljöriktiga. Jan-Eric Sundgren 24 November, 2008

Construction Equipment AB Volvo Business Areas Mack Trucks Renault Trucks Volvo Trucks BA Asia Incl. Nissan Diesel Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Some of our Business Units Volvo 3P Volvo Powertrain Volvo Logistics Volvo Technology Volvo Technology Transfer Volvo Information Technology Jan-Eric Sundgren 24 November, 2008

Construction Equipment AB Volvo Business Areas Mack Trucks Renault Trucks Volvo Trucks BA Asia Incl. Nissan Diesel Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Some of our Business Units Volvo 3P Volvo Powertrain Volvo Logistics Volvo Technology our research and innovation company Volvo Technology Transfer our venture capital company Volvo Information Technology Jan-Eric Sundgren 24 November, 2008

How Volvo drives innovation Jan-Eric Sundgren 24 November, 2008

Vehicle Integrated Lane Keeping Support Available for Volvo FH & FH16 Lane Keeping Support (LKS) determines the vehicle position on the road by monitoring lane markings LKS warns and reduces the risk to: Unintentionally slide out of the lane Drive off the road Collide with meeting vehicles A vehicle integrated lane keeping support (LKS) system is already available on the market from Volvo. It determines the vehicle position on the road by monitoring lane markings It warns and reduces risk to Unitentionally slide out of the lane Drive off the road Collide with meeting traffic There are predictions indicating a reduction of truck related accidents by as much as 30% can be accomplished. Jan-Eric Sundgren 24 November, 2008

Vehicle integrated driver alert support Monitors driving behaviour Warns tired drivers Based on LKS The safety research community seems to agree that reduced driver awareness is a major reason for serious accidents. Vehicle integrated Driver alert support systems are available today. Volvo uses the Lane keeping support system as a base, which of course means that good lane markings must be provided by the road operators. Jan-Eric Sundgren 24 November, 2008

University cooperation is essential Jan-Eric Sundgren 24 November, 2008

Volvo and the knowledge triangle Market Venture Cap Core innovation Spin out innovation Volvo Group VTT Research Institutes Volvo Technology Universities VREF Schools VREF= Volvo Research and Educational Foundation Jan-Eric Sundgren 24 November, 2008

Needs driven research - Based on a research challenge and an industrial (societal) need and a - comon vision - Focused, Long term, Critical size, Multi disciplinary & multi stakeholder - Contains resources for tests and for validation of research results Universities Institutes Companies Universities Institutes Companies Basic research Applied research Development Basic research Needs driven research Development Jan-Eric Sundgren 24 November, 2008

EIT pilot projects – GAST project overview Jan-Eric Sundgren 24 November, 2008

Research Implementation Multistake holder engagements in R&D projects Support for demonstrators Support for establishing markets Proactive procurements Venture Capital, Seed funding Jan-Eric Sundgren 24 November, 2008