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The 156 “zero-emission†buses that shuttle through the Shanghai Expo site are sending visitors a message that low-carbon is by no means the privilege of cars.
These "zero-emission" passenger cars come from the global commercial vehicle giant Volvo Group, including 120 "zero emission" pure electric buses and 36 super-capacity buses.
Although the public is now more familiar with Toyota's Prius, this type of consumer-oriented new energy cars, but Volvo Group President and CEO Leif Johansen in an exclusive interview with this reporter said: Commercial vehicle companies in energy-saving environmental protection It is entirely possible to walk in front of passenger vehicles because new energy technologies can help commercial vehicle owners save more fuel costs.
He also pointed out that new energy buses are easier to promote than new energy cars. Because it is difficult to promote new energy cars before establishing a huge new energy supply system (charging stations or new fuel stations). The bus has a few problems with supplementary energy due to the fixed line of operation, which makes it easier to promote.
After Lef Johansson took over the Volvo Group in 1997, he immediately spun off the Volvo passenger car business and sold it to Ford, focusing his funds on the development of the commercial vehicle business. At present, the Volvo Group has become the second largest manufacturer of heavy trucks and large passenger vehicles in the world, and it also ranks third in the field of construction equipment.
However, Ford failed to carry forward the Volvo passenger car business. Chinese private car company Geely recently acquired this part of the assets from Ford Motor Company. Leif Johnson said that he expects Geely's acquisition to be successful. “The Volvo Passenger Car Company is actually very talented. Providing them with the right environment should be successful.â€
Volvo's low-carbon technology
"21st Century": In addition to the 1500 passenger cars that have already arrived, what cooperation will Volvo and the Shanghai World Expo have? What opportunities do you think the Shanghai World Expo will provide for Volvo?
Leif Johansson: I think the main purpose of the World Expo is to show the charisma of various countries around the world. Volvo is Sweden's largest company and can reflect the characteristics of Sweden in many places. Therefore, Volvo is very proud to be one of the symbols of Sweden. Participate in the Shanghai World Expo. The Shanghai World Expo can provide us with tremendous opportunities. Frankly, China is a very strategic market for us.
"21st Century": Low-carbon society is one of the main concepts advocated by the Shanghai World Expo. What contribution does Volvo have to promote the low-carbon society? Have you developed a product that meets the concept of a low-carbon society?
Leif Johansson: Volvo has a large global product line, and the low-carbon technologies involved in various product areas are also different. For example, Volvo has entered the bus market in China, mainly involving hybrid technology and super-capacitor automotive technology. At present, we have a very solid product with Shenwo in the super capacitor bus. Hybrid technology also has a very good application in the passenger car. These technologies are also used in Volvo's truck and construction equipment products.
In addition to energy-saving technologies in these products, Volvo also minimizes carbon emissions in the production process. We have taken a substantial step forward in the construction of a carbon-neutral (carbon-free) plant. In Belgium we already have a fully carbon-neutral factory. We rely on wind turbines on the plant and on the roof. Solar power plants and some biomass power plants provide energy for factories. These technologies are also being promoted in Volvo's global factory system, including the factory where we are now. This allows us to save 50% of energy when building each car.
"21st Century": How high are the energy efficiency of these new energy vehicles that you just mentioned?
Leif Johansson: We have a hybrid pilot of a double-decker bus in London. The energy saving achieved is about 35%.
Commercial vehicle owner returns more energy
"21st Century": At present, many passenger car companies have high-profile launch of their new energy vehicle products, such as Toyota's hybrid car Prius, while commercial vehicle company's new energy car products are rarely known, does this mean Volvo? Are such commercial vehicle companies lagging behind in new energy vehicles?
Leif Johnson: No, I totally disagree with this. If you want to say hybrid technology, Volvo has applied to many products. If we want to achieve zero emissions in the commercial vehicle sector, we must use other fuels (to replace the current oil and diesel). Some engines of Volvo Commercial Vehicles can now support seven renewable fuel technologies that can achieve zero emissions.
In fact, I think that owners of commercial vehicles will take the initiative to accept new energy vehicles because the operating costs of commercial vehicles are much higher than those of passenger vehicles. This part of the funds can bear the cost of new energy technologies.
"21st Century": Why should commercial vehicle owners support new energy technologies? At present, the price of green energy is high. Commercial vehicles such as trucks and passenger cars are used as a production tool. Their daily operating time is longer than that of passenger cars and their fuel consumption is greater. Is the price paid for green energy not higher?
Leif Johansson: For passenger cars, the proportion of fuel expenditure relative to the cost of buying cars is very low, and the fuel cost of passenger cars is much higher, accounting for almost half of the total operating costs. Therefore, customers of commercial vehicles pay more attention to fuel efficiency. Because of the huge fuel consumption of commercial vehicles, new technologies that improve fuel efficiency can save commercial vehicle users more money. They are willing to accept the high prices of new energy technology commercial vehicles. It is because you can get a return on the cost of fuel.
"21st Century": Are all these new energy technologies from Volvo commercialized?
Leif Johansson: Volvo has now commercialized both hybrid and zero-emission alternative fuel technologies.
In the field of alternative fuels that can achieve zero emission, we have already practiced in the past few years to develop seven renewable fuel technologies based on diesel engines, and have successfully piloted in several cities. The two technologies fully illustrate that in fact, our commercial vehicle companies can walk in front of passenger cars in energy conservation and environmental protection.
"21st Century": There are many new energy solutions in the global automotive market. You just mentioned that Volvo has developed 7 types of renewable fuel technologies. Which of these technologies are you most optimistic about?
Leif Johansson: In terms of renewable fuel technology, I think the mixed fuel made up of biodiesel and common fossil fuels will be more widely used in the short term.
Asia is expected to become Volvo's largest market
"21st Century": I saw reports that you completed your first China trip as early as 1978. Then you should have an intuitive feeling of the rapid development of the Chinese economy in the past three decades. Do you think this high-speed growth can continue? Are you going? At present, some international economists are advocating "China's collapse theory," and even predict that the Chinese economy will collapse in the next year because of the collapse of the asset bubble. How do you evaluate this view?
Leif Johansson: Actually, my first visit to China was in 1975. Volvo began to enter China in the late 1970s and early 1980s and started business in the 1990s.
I do not agree with this theory of China's collapse theory. I did not see the composition of the asset bubble in China. Of course, I think that the Chinese economy may grow healthier at 8% instead of 11%. However, taking into account China's urbanization process and the demand for infrastructure construction, I do not think that there is currently a factor that causes China's economic collapse. I am very much looking forward to seeing a steady increase in China's economy.
"21st Century": Asia is the fastest-growing market for Volvo's business, and its sales have more than doubled in the past decade. Volvo’s quarterly report this year showed that when the Asian market sales grew by more than 20% year-on-year, the European market remained sluggish. Does this mean that Asia will overtake Europe as Volvo’s largest market in the future?
Leif Johansson: Today, Asia is already our second largest market. If the economic growth rates of China and India, the two largest countries in Asia, continue to stay above 10%, the Japanese economy will begin to recover after nearly 20 years of downturn. However, if the European economy continues to grow at a slower pace, Asia will one day replace Europe as Volvo’s largest market.
Look forward to Geely's successful integration of Volvo cars
"21st Century": China's private car company Geely recently acquired Volvo Passenger Cars from Ford Motor Company. This is the part of the assets that you stripped from Volvo Group to Ford 12 years ago, so I would like to know you How to evaluate Geely's acquisition? Do you think Geely can do better than Ford in terms of post-acquisition integration management?
Leif Johansson: I sincerely hope that Geely can succeed. The reason I am looking forward to this is that Geely has China, the world’s largest auto market after the slump in the US auto market. In addition, I would like to say that my former colleagues at Volvo Passenger Cars are actually very talented. Providing them with the right environment should be successful.
"21st Century": In the context of Detroit's decline, how do you evaluate the status of Chinese companies in the global automotive industry? Which Chinese company do you think is the most promising to become the leader of the global automotive market?
Leif Johnson: Since Volvo's business does not include passenger cars, I can only answer this question as an outsider. A large number of Chinese auto companies are competing with international rivals. Frankly, it is not yet clear who will ultimately succeed. But as long as Chinese auto companies continue to innovate in technology, they will naturally realize the importance of the brand, and we have enough reason to expect Chinese auto companies to succeed in the global market.
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