THE POWER OF WE The strength of diversity

Volvo Cars Gent; PR & Communicatie; mdemey

Page 1Issue date: Update 01/2011, Security Class: Public

THE POWER OF WEThe strength of diversity

VOLVO CARS GENT 2011



Volvo – a strong and global brand



“Cars are driven by people. The guiding principle behind everything we make at Volvo, therefore, is – and must remain – safety.”

Assar Gabrielsson and Gustaf Larson,

founders of Volvo

Volvo – een sterk en wereldwijd merk• Gebaseerd op kwaliteit en veiligheid

SAFETY



Pedestrian Detection & Full Auto Brake (S60)


VEILIGHEID

3-point belt (Nils Bohlin)

City Safety:Euro NCAP Advance Rating



• Product strategy• Further optimize fuel engines

DRIVe-range: seven models with best-in-class CO2 values

• Plug In Hybrids/Pure Electric C30 (project)

• Alternative fuels

• All plants use green power

• Wind turbines (Ghent) for 15-30% of electricity consumption

• Best-in-class paint shop regardingsolvent emissions

ENVIRONMENTAL CAREVerbruik (l/100 km)

CO2 (g/km)

Volvo C30 (stop/start) 3.9 99

Volvo S40 (stop/start) 3.9 99

Volvo V50 (stop/start) 3.9 99

Volvo V70 4.9 119

Volvo S80 4.9 119

Volvo XC60 6.0 154

Volvo XC70 6.0 154



• Nature as a source of inspiration

• Design to fit man• Allergy free textiles and

interior components (Öko-Tex certified)


SCANDINAVIAN DESIGN



Volvo Cars’ world



Model range - Production

Volvo S40

2010: 28.666 Assembly: Ghent

Volvo S60

2010: 27.579Assembly: Ghent

Volvo S80

2010: 28.949 Assembly: Gothenburg

Volvo V50


Volvo V70


Volvo C70

2010: 9.532Assembly: Uddevalla

Volvo C30

2010: 35.248 Assembly: Ghent

Volvo XC90

2010: 36.711Assembly: Gothenburg

Volvo XC70


Volvo XC60


Incl. assembly in China (S40/S80L), Thailand (S80, XC90) and Maleisia (S40, S80,V50,XC60,XC90). Total VCC-production 2010: 387.802 cars

Volvo V60




China strategy

• Manufacturing plant in Chengdu, 1,600 km west of Shanghai. 100,000 cars annually; production is estimated to start during 2013.

• Plant to follow Volvo Cars Manufacturing System

• The expansion in China will not affect operations and employment in Europe.

• Investigating the opportunities for establishing a plant in Daqing in north-eastern China.

• Shanghai will serve as Volvo Car China headquarters and centre for product development, design and sourcing. To support Volvo Corporation R&D in Sweden regarding the development of electric vehicles and hybrids.

• Focus on increasing sales in China and expanding dealer shops.

• Volvo Car Corporation will optimize its sourcing network in China for the global market.

• Volvo Car China will start to employ new staff to work with product development for the Chinese market and support local production and purchasing.

• Geely is Geely and Volvo is Volvo.



Volvo Cars’ plants

Assembly• Göteborg (S): 136.323

• Uddevalla (S): 9.532

• Ghent (B): 223.117

Components • Skövde (engines)

• Floby (connecting rods and brake discs)

• Torslanda (body components)

• Olofström (body components)



Activities Volvo Cars Gent

Welding(1972)

Painting(1972; 1997)

Trim & Final(1965)



Teamwork

THE POWER OF WE• Teams of

approx. 12 people

• Job rotation

• Autonomous management

• QCDISME (quality, cost, delivery, improvement, safety, man, environment)



50

100

150

200

250

300

65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09

Key figures

Europe: 65%

North America: 14.8%

Far East: 10.4%

Others: 9.8%

EMPLOYEESPRODUCTION VOLUMES

MARKETS

Shift system1 2 1 2 3

0

1.000

2.000

3.000

4.000

5.000

6.000

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

1968

1966

UK 10.2 %Sweden 9.6 %Germany 7.6 %Belgium 6.3 %Italy 6.0 %France 4.3 %Netherlands 4.0 %Spain 3.5 %



History1965-1969: Amazon 1967-1974:Volvo 140 1974-1984: Volvo 240

1984-1992: Volvo 740 1991-1996: Volvo 850 1996-2000: Volvo S60/V60/V70

2004-: Volvo S40, V50, C30 2008-: XC60 2010-:S60

Small platform (C) Large platform (EUCD)

Production 1965-2010: 4.4 million cars



Building and Equipment

Site surface: 547,000 m2

Built-up area: 275,340 m2

Robots: 828 (mainly for welding and painting)

Assembly lines: 15.7 km



KennedylaanSiffer dock DSV Sequencing Center

Paint shop Non-colour

Paint shop Colour

Welding plant

Trim & Final

NS

WE



Sequential suppliers

10

11

44

45

83

85

90

175

189

210

225

225

340

584

650

Borgers

Rieter (1)

Kautex (2)

Tenneco Automotive

MC Syncro

Brose

Faurecia

TI Group (Lokeren)

SAS Automotive

Engine Center Gent

Benteler

Plastal

Tower Automotive

DSV

JCA / JCI (Assenede)

Boot trim

Exhaustsystems

Combination wheel-rim

Doormodules

Interior components

Fuel tanks

Cockpit (dashboard)

Motors

Chassis components (subframes)

Bumpers

Fuel tanks (synthetic materials)

Floor carpets

Bodywork modules

Logistic provider

Seats; Interior components

• Delivery “just in time” and “just in sequence”.

• 3000 employees and over 1 billion euros turnover



• Kautex

• Brose, MCSyncro

• Plastal

• ESDIC (Volvo Cars)

Not on this map:

• Johnson Controls Assenede

• TI (Lokeren)

• Engine Center Gent

• SILS-center (Supply In Line Sequence): Faurecia, SAS, Benteler, Tenneco

• Tower Automotive

• Volvo Cars Gent

• DSV (Sequencing Center)

• Distribution Yard/EuroBridge

N SW

E



Do’s and don’ts for visitors

• No smoking in Volvo Cars Gent.

• Not allowed: mobile phones in the plant; photography.

• Keep on the walking aisles (green: pedestrian area; yellow: mixed pedestrian/fork lift traffic); follow the guide.

• Safety glasses obligatory in the welding plant.

• Don’t touch the car bodies or cars.

• Use doors instead of gates (fork lift traffic).

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THE POWER OF WE The strength of diversity