Volvo 2006 Annual Report Download - page 18

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Innovation and product development
Renewal and concept development
Development of innovative technology is the key to success for new genera-
tions of products, and to maintaining market-leading positions in the future.
Efforts are constantly under way within the Group to improve the per-
formance of products and thereby strengthen competitiveness. At the
same time, research looking even further into the future is conducted in
order to achieve new technical breakthroughs.
The Volvo Group cooperates worldwide with a large number of external
partners in projects and forums that allow experience to be exchanged and
contact to be made with cutting-edge technologies and innovations. The
Volvo Group will continue to actively exchange information with many differ-
ent players, such as universities, research institutes, customers, suppliers
and government authorities.
Providing a complete, customer-oriented offering
For a global organization such as the Volvo Group, product planning must
ensure that the right products with the right specifications are offered in the
right markets. Accordingly, products typically offer an extensive range of
customer adaptations. Product adaptation supports the distinctive features
of each brand and its competitive advantages as seen from the customer’s
perspective.
Improving fuel efficiency and increasing the use
of alternative fuels
It is a major challenge to create a sustainable society that does not jeop-
ardize the environment for future generations. The Volvo Group is a driving
force within the transport industry in such areas as energy and the environ-
ment. This undertaking seeks to attain a gradual transition from fossil fuels,
such as oil and natural gas, to fuels from renewable sources and hybrid drive
systems.
Product development has to be
based on requirements from the
customers. Volvo CE invites se l -
ected customers at an early stage
when new products are to be
designed. Customers give the
company valuable feedback on
what needs they have and what
features should be included in
coming products.
2
14 A global group 2006