Volvo 2005 Annual Report Download - page 18
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Development of
tomorrow’s products
At the same time that Volvo’s shareholders
have received a favorable return in the form
of dividends, the Volvo Group has contin-
ued to invest in the products of tomorrow.
These are products that sharpen our com-
petitiveness, generate value for our cus-
tomers and thereby contribute to creating
future value for our shareholders.
High rate of development and increased
cooperation
To an increasing extent, product develop-
ment is conducted by means of cooper-
ation between several of the Volvo Group’s
operations. All of the business areas have
increased their rate of product develop-
ment, which was particularly evident during 2005 when a large number of
new products were launched.
Driving force of tomorrow
As a result of increasingly stringent emission regulations
and more expensive fossil fuels, the Volvo Group is
increasing its development resources for optimization of
engines and drivelines. The Group engages in research in
other areas, such as supplemen-
tary fuels and alternative drive-
lines. Development efforts focus
on such features as hybrid tech-
nologies for saving fuel and redu-
cing the environmental impact of
carbon dioxide emissions.
Diesel engine in focus
The Volvo Group is the world’s largest
manufacturer of heavy-duty diesel engines.
A few years ago, all development and production of
diesel engines and gearboxes was concentrated into
Volvo Powertrain.
These diesel engines are used in most of the Group’s
products. They are the key to the development of forth-
coming product generations and have helped many of the
Group’s vehicles, construction machines, marine engines
and generator units attain market-leading positions. The
focus on remaining at the leading edge of development
continues. For example, the new generation of engines is
a world leader in terms of fuel efficiency and environmen-
tal performance.
Development and
production of heavy
engines in the 9- to
16-liter range is carried
out in Volvo Powertrain.
Volvo has a strategic
cooperation agreement
with Deutz for develop-
ment and production of
medium-heavy 4- to
7-liter engines.
l/100 km
Improved fuel efficiency
Trend of fuel consumption (liters per 100
kilometers) Volvo's FH12 truck model, 40 tons
Source: Volvo
20
25
30
35
40
45
1980 1985 1990 1995 2000 2005 2010
14 Volvo Group 2005