Future Urban Transport Presentation April 20th 2009 Volvo Car Corporation, Paul Gustavsson

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1 Volvo Car Corporation Strategy for a sustainable environment Future Urban Transport forum Göteborg April 20th 2009, Paul Gustavsson, Vice President Business Development

2 Agenda Corporate presentation Brand strategy Environmental strategy Sustainable transportation Key Message: Interactions between stakeholders requires cooperation - industry, consumers, government, academy

3 The world of Volvo Cars Head office, product development, marketing, administration Göteborg Design Centre Göteborg, Sweden Barcelona, Spain Camarillo, California Component manufacture Skövde Floby Olofström Car Production 2008 % 2007 Göteborg, Sweden Uddevalla, Sweden Gent, Belgium Chongqing, China Assembly Plants Malaysia Thailand Total: Represented in about 100 countries around the world About 2,400 local dealers

4 Model range Volvo S80 31,114 Volvo S60 26,148 Volvo S40 48,950 Volvo XC90 52,872 Volvo XC70 32,675 New Volvo XC60 6,954 Volvo C70 14,381 Volvo C30 39,966 Volvo V70 59,152 Volvo V50 62,085

5 We design cars for a better life Our brand target is a premium price position with a distinct and desirable brand image Volvo Car Corp focus areas Volvo Cars Brand Pyramid Continue to build the safest cars Be leading in both passive and active safety Deliver distinct, attractive yet, functional design Stunning visual apperance Enhance material perception Improve dimensions Be a leader on environment Deliver X g target line CO 2 /km by 2020 Secure clean compartment Meet competition and minimum requirements Improve handling Improve premium quality (material quality, solidity and dependability) Volvo will continue to be the leader on safety and focus on improving the environmental brand promise

6 Environmental Strategy focus areas Volvo Car expects Volvo Car respons Significantly increased focus on less environmental harm from urban transportation e.g. - CO2 free city centres - CO2 leveraged tax - tolls & parking fee structure Consumers expect classic car performance AND environmental performance Increased focus on efficient urban transport solutions Energy Effectiveness Base vehcicle improvements weight, efficiency, electronics Petrol/diesel ICE improvements Alternative fuel Electric drive Advanced Mobility Concepts

7 Diskussioner med svenska regeringen

8 Diskussioner med svenska regeringen Volvo C l/100km 104g CO2/km Volvo S l/100km 104g CO2/km Volvo V l/100km 104g CO2/km Volvo S l/100km 129g CO2/km Volvo V l/100km 129g, CO2/km Volvo XC l/100km 159g CO2/km Volvo XC l/100km 159g CO2/km

9 Volvo Flexifuel MY09 Volvo C30 Volvo S40 Volvo V50 Volvo S80 Volvo V70 1,8F 125hk 7,3l/100km 174 g/km CO 2 1,8F 125hk 7,4l/100km 177 g/km CO 2 1,8F 125hk 7,4l/100km 177 g/km CO 2 2,0F 145hk 8,3l/100km 199 g/km CO 2 2,0F 145hk 8,6l/100km 206 g/km CO 2 2,5FT 200 hk 9,2l/100km 219 g/km CO 2 2,5FT 200 hk 9,2l/100km 220 g/km CO 2

10 Volvo V70 2.5FT Bi-Fuel V70 2.5FT Bi-Fuel in product offer from model year Production start in Gothenburg planned for Q Volvo Cars in cooperation with Alternative Fuel Vehicles, Sweden. Order, finance, ensurance, delivery through Volvo AFV guarantees CNG installation 900 km s on biofuels!

11 Environmental strategy next steps no silver bullets Future areas for Volvo Cars Further development of technologies for engines running on biofuels Plug-in hybrid technology Demo car project cooperation with Vattenfall Battery Electric Vehicles Early phase project to understand technology and preconditions Weight reduction of base car

12 Interactions between stakeholders requires cooperation People Manufacturer Society Driving Behavior Incentives Congestion charges CO 2 taxation Fuel taxes Vehicle Efficiency Environmental concern Running Costs CO 2 Legislation Environmental Rating Public opinion Infrastructure Where to live/work Charging stations Infrastructure efficiency

13 Plug-in hybrid democar project Vattenfall AB and Volvo Car Corporation AB 2009 Thank you!

14 Plug-in hybrid democar project Vattenfall AB and Volvo Car Corporation AB 2009 Thank you!

15 Plug-in hybrid democar project Vattenfall AB and Volvo Car Corporation AB 2009 Thank you!

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