Volvo 2007 Annual Report Download - page 43
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Please find page 43 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Products and
development
Volvo delivered the fi rst US10-compli-
ant trucks to customer for fi eld testing
Volvo Trucks North America has delivered fi ve
Volvo trucks that meet the stringent US10
truck emission standards to customer for fi eld
testing. The US10 standard becomes effective
in 2010 and the trucks now delivered are
equipped with the EGR (Exhaust Gas Recir-
culation) and SCR (Selective Catalytic Reduc-
tion) emission-control systems. The VN model
trucks have been delivered to a customer,
which will now fi eld test the SCR technology
that is common in Europe. To date, the emis-
sion requirements in North America were met
by applying EGR technology and particulate
fi lters. The trucks now being delivered are
also equipped with SCR.
Volvo displayed
carbon-dioxide-neutral trucks
The Volvo Group is the fi rst vehicle manufac-
turer to have produced seven demonstration
trucks that can all be driven without emitting
any environmentally harmful carbon dioxide.
These trucks were exhibited for the fi rst time
in August and are equipped with diesel
engines that have been modifi ed to operate
on seven different types of renewable liquid
and gaseous fuels. The seven Volvo FM trucks
are equipped with Volvo’s own 9-liter engines
that have been specially modifi ed to illustrate
the possibilities of carbon-dioxide-neutral
transport. The seven trucks can be operated
on the same number of different renewable
fuels and/or combinations of fuels: biodiesel,
biogas combined with biodiesel, ethanol/
methanol, DME, synthetic diesel and hydro-
gen gas combined with biogas. Since all of
these fuels are produced from renewable raw
materials, they provide no carbon-dioxide
contributions to the ecosystem when com-
busted and, accordingly, do not impact the
environment.
Volvo’s plant in Ghent fi rst in the world
with carbon-dioxide-neutral vehicle
production
In September, the Volvo Group, presented
Volvo Trucks’ plant in Ghent, Belgium as the
fi rst vehicle plant in the world completely car-
bon dioxide (CO2) neutral. The Volvo Group’s
efforts pertaining to CO2-neutral plants are
fully in line with EU’s goal for reducing car-
bon-dioxide emissions by 20% in Europe by
2020. The Volvo Group’s ambition is to make
all its plants CO2-neutral. Already in 2005,
the Volvo Group decided to transform the
Volvo Trucks plant in Tuve, Sweden into a
CO2-neutral vehicle plant and work is currently
in progress on the completion of the local
planning and an application for environmental
permits has been prepared. The plant in
Umeå, Sweden is also set to become CO2-
neutral. For Ghent, investments in wind power
and biofuel will provide the plant with electricity
and heat that does not add any carbon dioxide
to the atmosphere.
Volvo Aero’s light-weight technology
chosen for the Airbus A380 GP7000
engine
Pratt & Whitney has selected Volvo Aero to
re-design a component for the GP7000
engine for Airbus’ new A380 jumbo jet. The
agreement also anticipates that Volvo Aero
will assume responsibility for manufacturing
and product support for the component, the
turbine exhaust case, during the engine’s life-
time. The turbine exhaust case is a highly
critical part of the aircraft engine because,
among other reasons, as it is one of the two
support systems that carry the weight of the
entire engine. The new construction pre-
sented by Volvo Aero reduces the compo-
nents weight by over 10%, with consequential
effects on fuel consumption and therefore
also the engines environmental infl uence.
Series production of the new TEC for the
GP7000 engine is projected to start as early
as 2010. At the end of the same year, Volvo
Aero will take over full manufacturing respon-
sibility.
Events in 2008
Negotiations with the US union UAW
In North America the former agreement
between Mack Trucks and UAW, the Ameri-
can union for vehicle workers, was due 30
September 2007. The agreement has been
prolonged on a day-to-day basis. During Jan-
uary 2008 the agreement between Volvo
Trucks North America Operations and UAW
was due, without the parties agreing on a pro-
longation. Since the parties at that time had
not succeeded in reaching an agreement, the
UAW chose to engage in a strike. Negotia-
tions are ongoing. At present, it is not possible
to estimate neither the duration of the strike
nor the outcome of the negotiations, which
have not been terminated, but there is a risk
that the outcome may have a signifi cant nega-
tive impact on the consolidated operating
income in 2008.
Board of Directors’ Report 2007 39