Jan-Eric Sundgren1

AB Volvo

24 November, 2008

Industry, innovations and university cooperation, some reflections

Jan-Eric Sundgren

Volvo GroupSenior Vice PresidentPublic and Environmental Affairs

Jan-Eric Sundgren2

AB Volvo

24 November, 2008

Nissan Diesel Mack TrucksRenault TrucksVolvo Trucks

Volvo Aero

Buses

Construction Equipment Volvo Penta Financial Services

Short about Volvo GroupBusiness Areas

Jan-Eric Sundgren3

AB Volvo

24 November, 2008

Global activities

100.000 employeesProduction in 18 countries, sales in more than 180 countries

Jan-Eric Sundgren4

AB Volvo

24 November, 2008

World Drivers - Volvo Group

EconomicEconomicEconomicEconomic

• GDI growth / GDI per capita

• Globalization

• Consolidation

PoliticalPolitical PoliticalPolitical

• World trade liberalization

• Transport policies

• Political stability

SocialSocialSocialSocial

• Demographics

• Lifestyle

• Education

TechnologyTechnologyTechnologyTechnology

• Innovationselectronics, mobile communication, telematics, PC’s Internet

• Lead times

EnvironmentEnvironmentEnvironmentEnvironment

• Green house effect

• Polluted air and water

• Oil / gas availability & price

• Managing waste

LegalLegalLegalLegal

• Deregulation

• Controlled competition

• Environment

• Harmonization of laws

Transport Buyers

Transport BuyersCustomersCustomers Dealers Dealers Production Production Suppliers

1st, 2nd, . Suppliers 1st, 2nd, .

Jan-Eric Sundgren5

AB Volvo

24 November, 2008

The world economy

Redesigning global finance

13 November, 2008

Jan-Eric Sundgren6

AB Volvo

24 November, 2008

1785

1970

1895

1945

1990

1815

1875

1914

1845

Today

?

The financial crisis

The end of the ”long wawe”????GDP

An impressionistic interpretation of Schumpeter and Kondratiev

Jan-Eric Sundgren7

AB Volvo

24 November, 2008

1785

1970

1895

1945

1990

1815

1875

1914

1845

The financial crisis

The end of the ”long wawe”????GDP

An impressionistic interpretation of Schumpeter and Kondratiev

Fiscal stimulus needed in:

Innovations

R&D

Education

Infrastructure

.......

Jan-Eric Sundgren8

AB Volvo

24 November, 2008

Beijing, 20New York, 18

Los Angeles, 14

Mexico City, 19

Sao Paulo, 21

Cairo, 15

Lagos, 24

Jakarta, 21

Manila, 15

Shanghai, 23

Tokyo, 29New Delhi, 18

Bombay, 27

Dhaka, 19

Calcutta, 18

Tientsin, 17

Karachi, 21

Source: UN prognosis

>25 millions

20-24,9 millions

15-19,9 millions

14-14,9 millions Population (millions inhabitants) approx. 2015

Environmental Challenges Global warmingAir qualityMega cities………...…...

Jan-Eric Sundgren9

AB Volvo

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 Sundgren10

AB Volvo

24 November, 2008

Solutions requirePassionate innovation

The fundamental source of increasing wealth in an economy is innovation leading to increased productivity

Jan-Eric Sundgren11

AB Volvo

24 November, 2008

MackTrucks

RenaultTrucks

VolvoTrucks

Volvo Aero

FinancialServices

AB Volvo

Business Areas

Some of our Business Units

Volvo 3P

Volvo Powertrain

Volvo Logistics

Volvo Information Technology

Volvo Technology

BA AsiaIncl.

Nissan Diesel

VolvoPenta

ConstructionEquipment

Buses

Volvo Technology Transfer

Jan-Eric Sundgren12

AB Volvo

24 November, 2008

MackTrucks

RenaultTrucks

VolvoTrucks

Volvo Aero

FinancialServices

AB Volvo

Business Areas

Some of our Business Units

Volvo 3P

Volvo Powertrain

Volvo Logistics

Volvo Information Technology

Volvo Technology our research and innovation company

BA AsiaIncl.

Nissan Diesel

VolvoPenta

ConstructionEquipment

Buses

Volvo Technology Transfer our venture capital company

Jan-Eric Sundgren13

AB Volvo

24 November, 2008

I nnovation Activity Now +5 years +10 years +15 years

Customer Interaction & Product Validation

Marketing & Production

Speci- & Verification

Industrialisation

Optimisation

Platform Development

Standardisation

Prototype Demonstration

Concept Development

Technology Development

Research

Visioning, Business & Product Planning

performed by entrepreneurs, business developers, market people, customer analysts, product planners, inventors, engineers, researchers & managers in industry & development companies, authorities, institutes, universities, etc

Pilot Series

Product & business visions & plans

How Volvo drives innovation

Jan-Eric Sundgren14

AB Volvo

24 November, 2008

Vehicle Integrated Lane Keeping Support

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

Available for

Volvo FH & FH16

Jan-Eric Sundgren15

AB Volvo

24 November, 2008

Vehicle integrated driver alert support

Monitors driving behaviour Warns tired drivers

Based on LKS

Jan-Eric Sundgren16

AB Volvo

24 November, 2008

University cooperation is essential

Jan-Eric Sundgren17

AB Volvo

24 November, 2008

Volvo and the knowledge triangle

Schools

Universities

Research Institutes

Venture Cap

Market

VREF

VREF= Volvo Research

and Educational Foundation

Volvo GroupVTT

Volvo

Technology

Core innovation

Spin out innovation

Jan-Eric Sundgren18

AB Volvo

24 November, 2008

Basic research

Applied research

Development

CompaniesInstitutesUniversities CompaniesInstitutesUniversities

Basic research

Needs driven

research

Development

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

Jan-Eric Sundgren19

AB Volvo

24 November, 2008

EIT pilot projects – GAST project overview

M24

Collect projects

Identify (WP1) Design (WP2)

Analyse

Project management (WP7)

Sustainability (WP6)

Good practices

Roadblocks

Networking & Dissemination (WP5)

Governance

Operation

Funding

Partnership

Test (WP3)

Test project 2

Test project 3

Test project 1

Validate (WP4)

KIC framework

New model(s)

M6 M12 M18

Test project 4

M24

Collect projects

Identify (WP1) Design (WP2)

Analyse

Project management (WP7)

Sustainability (WP6)

Good practices

Roadblocks

Networking & Dissemination (WP5)

Governance

Operation

Funding

Partnership

Test (WP3)

Test project 2

Test project 3

Test project 1

Validate (WP4)

KIC framework

New model(s)

M6 M12 M18

Test project 4

Jan-Eric Sundgren20

AB Volvo

24 November, 2008

Research Implementation

Multistake holder engagementsin R&D projects

Support for demonstrators

Support for establishing markets Proactive procurements

Venture Capital, Seed funding