SHARE
COPY LINK

CAR

Volvo and Siemens rev up electric car venture

Swedish automaker Volvo Cars has teamed up with German industrial group Siemens to develop technology for electric vehicles, the companies announced said Wednesday.

Volvo and Siemens rev up electric car venture

“We are very happy to have Siemens as a partner. Their world-leading knowledge and experience will help bring the technology in our electric cars to a whole new level,” Volvo Cars CEO Stefan Jacoby said in a statement.

The two companies have formed a partnership that involves “extensive strategic cooperation” in electrical drive technology, power electronics and charging technology, a statement said.

The Volvo C30 electric car will serve as a test platform and early models will be on test tracks by the end of the year, it added.

By late 2012, Volvo is to deliver a test series of 200 vehicles to Siemens for testing under “real-life conditions.”

Financial details were not provided.

According to Jacoby, the companies hope to make quick progress working together.

“Our goal is to be the first with the latest electric motor technology,” he said, adding that the partnership increases Volvo’s chances of exploiting a “fast growing” market for electric cars.

“Both companies’ goals and core competencies in electric mobility are perfectly matched,” Siemens said, and the agreement provided the German group with a chance to take its electric drive technology to the auto market.

“Cooperation with Volvo is an important milestone in the development of top quality components and systems for electric cars subsequently intended for series production”, the statement quoted board member Siegfried Russwurm as saying.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

VOLVO

Sweden’s Volvo regains strength after pandemic puts brakes on earnings

Swedish truck maker Volvo Group was hit by a sharp drop in earnings due to the coronavirus pandemic, but business rebounded at the end of the year.

Sweden's Volvo regains strength after pandemic puts brakes on earnings
Volvo Group CEO Martin Lundstedt. Photo: Adam Ihse/TT

In 2020, the group saw “dramatic fluctuations in demand” due to the Covid-19 pandemic, chief executive Martin Lundstedt said in a statement.

For 2021, Volvo raised its sales forecasts in its trucks division – its core business – in Europe, North America and Brazil.

However, it said it also expected “production disturbances and increased costs” due to a “strained” supply chain, noting a global shortage of semiconductors across industries.

The truck making sector is particularly sensitive to the global economic situation and is usually hard hit during crises.

In March, as the pandemic took hold around the world, Volvo suspended operations at most of its sites in 18 countries and halted production at Renault Trucks, which it owns, in Belgium and France.

Operations gradually resumed mid-year, but not enough to compensate for the drop in earnings.

With annual sales down 22 percent to 338 billion kronor (33.4 billion euros, $40 billion), the group posted a 46 percent plunge in net profit to 19.3 billion kronor (1.9 billion euros).

Operating margin fell from 11.5 to 8.1 percent.

However, the group did manage to cut costs by 20 percent.

“We have significantly improved our volume and cost flexibility, which were crucial factors behind our earnings resilience in 2020,” the group said.

Volvo's business regained strength in the second half of the year.

“Customer usage of trucks and machines increased when the Covid-19 restrictions were eased during the summer and this development continued during both the third and fourth quarters,” it said.

“Both the transport activity and the construction business are back at levels on par with the prior year in most markets.”

For the fourth quarter alone, the company reported a 38-percent rise in net profit from a year earlier.

SHOW COMMENTS