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Supplying Volvo 2014

  • ID: 2761564
  • February 2014
  • 55 Pages
  • SupplierBusiness

This new addition to the Supplying the OEMs series of reports takes a look at Volvo. The report takes a look at the company’s product and platform strategy, including the upcoming SPA and CMA platforms. The report also goes inside the Volvo’s purchasing strategy, including an in-depth interview with Lars Wrebo, Senior Vice President of Purchasing and Manufacturing at Volvo.

The report also looks at the company’s current manufacturing sites based in Sweden, its future production strategy for China, and looks at OEM-supplier relations. The report is backed up with IHS Automotive’ Production Forecasts, the industry standard for automotive forecasting and analysis

Volvo is one of the most iconic and best-known Swedish brands. Although a relatively small company, assembling fewer than 500,000 cars per year in recent times, it is arguably one of the best-known automotive companies world-wide. Its widespread recognition derives from its reputation for leading-edge safety technology and environmental compliance. It has traditionally been seen, especially in the United States, United Kingdom, and some continental European markets, as the supplier of the archetypal middle-class family car, especially its estate models.

It has had an eventful history, having moved from independence to being part of Ford’s Premier Automotive Group (1999–2010) and onto Chinese ownership in the last four years. Geely paid USD1.8bn for Volvo. After a period of some uncertainty, especially regarding what the new owners, Geely, really wanted to do with the company, it is now in the midst of revamping its entire model line-up and expanding geographically. An investment programme worth around USD11bn is nearing completion.

Note: Product cover images may vary from those shown

1. Introduction

2. Financial Overview
First-half 2013 summary

3. Product and platform strategy
Introduction
Current major model programmes
- V40
- S60/V60/XC60
- V70/XC70
- S80
- XC90
Future platforms and model programmes
- SPA
- CMA
Powertrain strategy
New 4-cylinder engines

4. Purchasing strategy
Overview

5. Interview
Lars Wrebo, Senior Vice President of Purchasing and Manufacturing at Volvo
- Introduction and evolution of the purchasing function at Volvo
- The role and significance of Geely
- Implications for suppliers
- The significance of the new platforms
- Size and scale of purchasing function
- Developments in China
- Sourcing in Sweden
- Government support
- Supplier assessment
- Supplier finance
- Directed sourcing, managing tier two suppliers
- Supply chain security
- Logistics
- Implications of the new platforms for manufacturing
- Expanding existing manufacturing operations
- Reasons for S60 being made in two places
Supplier interview: David Grice, Johnson Controls Sweden AB

6. Production strategy and manufacturing footprint
Introduction
- A growing manufacturing network
Sweden
- Gothenburg - Torslanda
- Uddevalla
- Skovde engine plant
- Floby component plant
Belgium
- Ghent
China
- Major new investment
- Chengdu supplier network
- Environmental compliance
- Joint model development with Geely

7. Technology
Introduction
Vehicle connectivity
- Extending pedestrian detection technology to cyclist detection
- Night driving improved through innovative high-beam systems
Self-driving, autonomous cars
- New battery concept: energy storage within body panels

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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