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- Car industry needs to change to reflect new consumer demands, Volvo CEO says at UN conference

K1600 207937 Volvo Cars T8 Twin Engine Range  Video

Car industry needs to change to reflect new consumer demands, Volvo CEO says at UN conference 

Volvo Cars, the premium car maker, is updating its business model to a changing world and believes the car industry as a whole needs do to the same, its president and chief executive Håkan Samuelsson will announce today at the bi-annual meeting of the UN Global Compact Nordic Network in Gothenburg. 

The meeting represents one of the biggest gatherings of Nordic corporate sustainability experts under the auspices of the United Nations. Over 190 delegates from 100 companies and organisations are meeting at Volvo Cars headquarters to discuss how business can support the UN Sustainable Development Goals (SDGs). Volvo Cars is a founding member of the UN Global Compact, the world’s largest corporate sustainability initiative. 

K1600 170158 Twin Engine T8 Volvo S90 Inscription White

In his opening speech as host of the meeting, Mr Samuelsson will tell the gathered delegates that customer expectations and demands are changing and that the car industry will have to change with them. Sustainability is no longer a simple box-ticking exercise, but business-critical as well as a significant business opportunity for those companies that get it right, Mr Samuelsson will say. 

K1600 199902 H kan Samuelsson President CEO Volvo Car Group K1600 199904 H kan Samuelsson President CEO Volvo Car Group

“Our customers want safer, more sustainable and convenient cars,” Mr Samuelsson will say. “We can meet that demand, be a force for change and grow our business at the same time. I am confident that our next generation of fully autonomous, electrified and connected vehicles will help make the cities of the future cleaner, safer and smarter.” 

K1600 190820 T5 Twin Engine on CMA and T8 Twin Engine AWD on SPA K1600 205095 The new Volvo XC60 T8 powertrain


As an example, he will underline the importance of Volvo’s electrification strategy. “We recognize the limitations of the internal combustion engine and the appetite for change in society,” Mr Samuelsson will say. “That is why we have such an ambitious target when it comes to electrification. Our commitments will not only help protect the environment and make people’s lives better and safer. They also make perfect business sense.” 

K1600 193266 Start of production of new Volvo V90 premium estate K1600 193270 Start of production of new Volvo V90 premium estate

Volvo Cars is adapting to this new reality by making sustainable business an integral part of its corporate strategy. As part of its sustainability programme, the company has identified nine commitments directly supporting the SDGs that were agreed by all UN member states in 2015. 

Volvo Cars believes these commitments will contribute to its sustainable profitability and growth. For example, it has committed to having up to 1 million electrified Volvos on the road by 2025, and aims to have climate-neutral manufacturing operations that same year. It has also stated the most ambitious safety vision in the industry: by 2020, no one should be killed or seriously injured in a new Volvo. 

K1600 205039 The new Volvo XC60 Crash tests K1600 205040 The new Volvo XC60 Crash tests

The company is making good progress in reaching these targets: for example, CO2 emissions from its European manufacturing plants have fallen by 70 per cent between 2004 and 2016. It currently offers six plug-in hybrids in its range and plans to make every new model available as an electrified vehicle. New world-leading passive and active safety systems have significantly reduced the risk for traffic accidents and serious injuries for Volvo drivers. 

K1600 7340 Volvo Cars Gent Plant from the air K1600 8737 Volvo Cars Torslanda Plant 2004

Volvo Cars knows it cannot make progress by itself. That is why the company focuses on both private and public partnerships in sustainable development. It cooperates closely with safety organisations and public bodies to share its knowledge and advance traffic safety, it works with both public and private partners in the Drive Me autonomous drive experiment and it joined hands with Stora Enso and the Belgian government to realise a 40 per cent reduction in CO2 emissions at its manufacturing plant in Ghent. 

K1600 193268 Start of production of new Volvo V90 premium estate

The other commitments within Volvo’s sustainability framework include ensuring no fatalities or serious injuries involving any of its employees or contractors, an aim to be a leader in customer well-being by offering better filters and materials, and promoting a diverse and inclusive company culture. 

This year’s annual meeting of the UN Global Compact Nordic Network takes place at the Volvohallen conference center, part of Volvo Cars’ global corporate headquarters in Sweden, on May 8 and 9.