Drive Towards Zero, Volvo Cars Manufacturing Engineering, Luc Semeese Issue date: , Security Class: Propriety Page 1
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2 Volvo Cars Electrification Strategy DRIVe Towards Zero Brussels April 20th 2010 Luc Semeese Director - Volvo Cars Manufacturing Engineering Page 2
3 Company philosophy : DRIVe towards Zero! Zero accidents : Our vision is to design cars that do not crash! Safety In the shorter perspective the aim is that by 2020 no-one should be killed or injured in a Volvo. Zero emissions : Environment Our vision is to offer cars that have 0 C0 2 -emission!
4 6,5 5,9 Best Volvo Fuel consumption l/100km Best Volvo CO² emission g/km 159 g CO 2 3,8 99 g CO 2 C30 DRIVe 1,9 49 g CO 2 HYBRID 0,0 0 g CO 2 PEV X Page 4
5 Environmental Care DRIVe towards Zero Emission : Three main tracks EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 5
6 Environmental Care Three main tracks EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 6
7 Volvo C30 S40 V50 V70 S80 XC60 XC70 litres/100km CO 2 g/km EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 7
8 Environmental Care Three main tracks EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 8
9 Volvo Cars - Broadest green vehicle offer 14 Green models/engines In Sweden appr 60%. < 5 % petrol vehicles 100% Bränslemix Volvo Sverige * acc ,6% 46,0% 46,1% 50,3% Green vehicles 50% 10,6% 39,6% 39,3% 34,4% 13,9% 0% 4,7% * Bensin Bi-fuel Diesel DRIVe Flexifuel EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 9
10 Sweden's recipe for an alternative fuels strategy Legislation, Tax and Incentives : Legislation requiring E85 fuel pumps at all gas stations with an annual volume of petrol sales > m Company Car Tax incentive 20% rebate on benefit-in-kind for E85 capable vehicles and 40% rebate on CNG vehicles and electric hybrids Annual Circulation Tax (ACT) CO2 related with 30% rebate for alternative fuel capable vehicles (E85/CNG/electric hybrids) Green car purchase cash-back Continued tax exemption on E85 ( ) cash-back replaced with 5 yrs ACT exemption for new alternative fuel capable vehicles Free parking in major cities for alternative fuel capable vehicles Procurement - Requirement to have 50% green vehicles in public fleets Congestion charge - Exemption for green vehicles in Stockholm when regime implemented. Exemption abolished in EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 10
11 Environmental Care Three main tracks EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 11
12 Electricity will reduce environmental impact from cars Manage uncertain future oil availability Higher total efficiency than fossile fuel Fewer emission pipes > simpler control (CCS) Electricity production in the EU is under the Emission Trade System cars are not Over time electricity production gives lower CO 2 emission and can in principle be climate neutral No pollution and less noise in the traffic environment Page 12
13 Choice of electrification level Conventional vehicle w/ added electrification BEV w/ added aux power device Stop/start Mild HEV Medium HEV Full HEV Plug-In HEV BEV + Range Extender BEV Volvo focus Volvo focus Page 13
14 VCC electrical strategy Targets Meet EU 140g start/stop - DrivE PHEV SOP EU 95g line all cars PHEV prepared EV available (tbd) Large cars PHEV C30 Electric EV (tbd) Full portfolio prepared for PHEV EV Large scale (tbd) VCC Product range Small cars Page 14
15 Joint efforts are needed Electricity suppliers Renewable electricity Infrastructure Pricing Car manufacturers/suppliers Attractive price incl. batteries Attractive product Business modell Society Incentives Legislations Consumer driving pattern Page 15
16 The ultimate Volvo on its way Safe, Green and Fun-to-drive The 2012 Volvo Plug-In Hybrid 1.9 l/100 km (49g CO 2 ) Up to 50km electric driving range High performance fun to drive 275hp, up to 600Nm 0-100km/h < 8 s Convenient fuel up at home, 4-6hrs charge [230 Volts / 10 Amps] 1/3 running cost vs diesel drivetrain Zero CO 2 emissions in electric mode The VCC/Vattenfall V70 PHEV democar 2009 Page 16
17 Volvo Plug-in Hybrid Electric Vehicle the Tech Combined with an efficient premium diesel 150 kw (205 hp) Chargeable from power network - on board charger Lithium Ion battery 11.3 kwh 150kg Electric motor 50 kw (70 hp) Electric hydraulic power steering Regenerative braking system Start/Stop system included Electrical air condition Two cars in one On the market 2012 Page 17
18 Zero Emission Vehicle PEV : Pure Electrical Vehicle No compromises Safety Driving behaviour Climate comfort 4 persons + luggage Page 18
19 C30 PEV Battery capacity 24 kwh 150 km range (90% of daily commuting in EU) Electric engine 82 kw (110 hp) Acceleration km/h 10.5 seconds Top speed 130 km/h Safest place for the battery Battery weight 2 x 150 kg Front axle 56% Rear Axle 44% home : 230v 10A : max. 8 hours Page 19
20 Key events /proposal min. 250 test vehicles [2011] Start Of Production Q Customer Research Program Preferable Sweden & Belgium (*) Battery life Driver behaviour 3 year full service lease program Monthly leasing cost [still under evaluation] Local Volvo dealer and service workshops (*) : Volvo wants to build an EV in Gent, as first in Belgium. The more test vehicles in Belgium, the better! Page 20
21 Need for more electricity capacity? Medium-sized wind-power station can cover annual consumption of plug-in hybrids. 15 percent plug-in hybrids in Europe would only increase total electricity use by 1-3 percent. Simple household energy savings would keep energy requirement at current levels. Energy-efficiency improvements at Volvo Cars plants correspond to 15,000 plugin hybrid cars.
22 Key factors influencing the market introduction Product cost development Alternative cost the oil price Public awareness and acceptance Political incentives and standardisations Page 22
23 Sweden's recipe for Bio-Ethanol strategy Useful for Belgian Electrification strategy Legislation requiring E85 fuel pumps Push Load Infrastructure in the market Company Car Tax incentive 20% rebate Tax incentives at purchase of electrical vehicle Continued tax exemption on E85 ( ) Tax exemption on electricity (during lifetime of electrical vehicle) Free parking in major cities for alternative fuel capable vehicles Additional incentives for electrical vehicles 50% green vehicles in public fleets Push of electrical vehicles in public fleets EFFICIENCY ALTERNATIVE FUELS ELECTRIFICATION 23
24 Volvo Cars Electrification Strategy Brussels Seminar April 20th 2010 The Future is Electrical. Be ready!!! Page 24
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