THE POWER OF WE

The strength of diversity VOLVO CARS GENT 2011

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 1

Volvo – a strong and global brand Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 2

SAFETY Volvo – een sterk en wereldwijd merk • Gebaseerd op kwaliteit en veiligheid “Cars are driven by people. The guiding principle behind everything we make at Volvo, therefore, is – and must remain – safety.”

Assar Gabrielsson and Gustaf Larson, founders of Volvo

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 3

Volvo – een sterk en wereldwijd merk • Gebaseerd op kwaliteit en veiligheid VEILIGHEID City Safety: Euro NCAP Advance Rating 3-point belt (Nils Bohlin) Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 4 Pedestrian Detection & Full Auto Brake (S60)

ENVIRONMENTAL CARE • Product strategy • Further optimize fuel engines DRIVe-range: seven models with best-in-class CO2 values • Plug In Hybrids/ Pure Electric C30 (project) • Alternative fuels • All plants use green power • Wind turbines (Ghent) for 15-30% of electricity consumption • Best-in-class paint shop regarding solvent emissions Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 5 Volvo C30 (stop/start) Volvo S40 (stop/start) Volvo V50 (stop/start) Volvo V70 Volvo S80 Volvo XC60 Volvo XC70 Verbruik (l/100 km) 3.9

3.9

3.9

4.9

4.9

6.0

6.0

CO 2 (g/km) 99 99 99 119 119 154 154

Volvo – een sterk en wereldwijd merk • Gebaseerd op kwaliteit en veiligheid SCANDINAVIAN DESIGN • • • Nature as a source of inspiration Design to fit man Allergy free textiles and interior components (Öko-Tex certified) Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 6

Volvo Cars’ world Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 7

Model range - Production

Volvo S80 2010: 28.949 Assembly: Gothenburg Volvo S60 2010: 27.579

Assembly: Ghent Volvo S40 2010: 28.666 Assembly: Ghent Volvo XC90 2010: 36.711

Assembly: Gothenburg Volvo XC70 2010: 21.156 Assembly: Gothenburg Volvo XC60 2010: 83.670

Assembly: Ghent Volvo C70 2010: 9.532

Assembly: Uddevalla Volvo C30 2010: 35.248 Assembly: Ghent Volvo V70 2010: 48.585 Assembly: Gothenburg Volvo V60 2010: 13.404 Assembly: Gothenburg Volvo V50 2010: 54.302

Assembly: Ghent

Incl. assembly in China (S40/S80L), Thailand (S80, XC90) and Maleisia (S40, S80,V50,XC60,XC90).

Total VCC-production 2010: 387.802 cars

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 12

China strategy

• Manufacturing plant in Chengdu, 1,600 km west of Shanghai. 100,000 cars annually; production is estimated to start during 2013. • Plant to follow Volvo Cars Manufacturing System • The expansion in China will not affect operations and employment in Europe.

• Investigating the opportunities for establishing a plant in Daqing in north-eastern China.

• Shanghai will serve as Volvo Car China headquarters and centre for product development, design and sourcing. To support Volvo Corporation R&D in Sweden regarding the development of electric vehicles and hybrids. • Focus on increasing sales in China and expanding dealer shops. • Volvo Car Corporation will optimize its sourcing network in China for the global market. • Volvo Car China will start to employ new staff to work with product development for the Chinese market and support local production and purchasing.

• Geely is Geely and Volvo is Volvo. Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 13

Volvo Cars’ plants

Assembly

•

Göteborg (S): 136.323

•

Uddevalla (S): 9.532

•

Ghent (B): 223.117

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 14

Components

•

Skövde (engines)

•

Floby (connecting rods and brake discs)

•

Torslanda (body components)

•

Olofström (body components)

Activities Volvo Cars Gent

Welding (1972)

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 15

Painting (1972; 1997) Trim & Final (1965)

Teamwork

THE POWER OF WE Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 16 • Teams of approx. 12 people • Job rotation • Autonomous management • QCDISME (quality, cost, delivery, improvement, safety, man, environment)

200 150 100 50

Key figures

300

PRODUCTION VOLUMES

1 2 1 Shift system 2 250 3 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09

MARKETS

Europe: 65% North America: 14.8% Far East: 10.4% Others: 9.8%

UK Sweden Germany Belgium Italy France Netherlands Spain EMPLOYEES 10.2 % 9.6 % 7.6 % 6.3 % 6.0 % 4.3 % 4.0 % 3.5 %

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 17 6.000

5.000

4.000

3.000

2.000

1.000

0

History

1965-1969: Amazon 1967-1974:Volvo 140 1974-1984: Volvo 240 1984-1992: Volvo 740 1991-1996: Volvo 850 1996-2000: Volvo S60/V60/V70 2004-: Volvo S40, V50, C30 2008-: XC60 Small platform (C) Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 18 2010-:S60 Large platform (EUCD) Production 1965 2010: 4.4 million cars

Building and Equipment

Site surface: Built-up area: Robots: Assembly lines: 547,000 m 2 275,340 m 2 828 (mainly for welding and painting) 15.7 km Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 19

Trim & Final Paint shop Non-colour Paint shop Colour Welding plant Siffer dock Kennedylaan Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 20 DSV Sequencing Center

Sequential suppliers

Borgers Rieter (1) Kautex (2) Tenneco Automotive MC Syncro Brose Faurecia TI Group (Lokeren) SAS Automotive Engine Center Gent Benteler Plastal Tower Automotive DSV JCA / JCI (Assenede) 10 11 Boot trim Floor carpets 44 45 Fuel tanks Exhaustsystems 83 Combination wheel-rim 85 90 Doormodules Interior components • Delivery “just in time” and “just in sequence”.

• 3000 employees and over 1 billion euros turnover 175 Fuel tanks (synthetic materials) 189 Cockpit (dashboard) 210 225 Motors Chassis components (subframes) 225 Bumpers 340 Bodywork modules 584 Logistic provider 650 Seats; Interior components Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 21

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 22 • Kautex • Brose, MCSyncro • Plastal • ESDIC (Volvo Cars) Not on this map: • Johnson Controls Assenede • TI (Lokeren) • Engine Center Gent • SILS-center (Supply In Line Sequence) : Faurecia, SAS, Benteler, Tenneco • Tower Automotive •

Volvo Cars Gent

• DSV (Sequencing Center) • Distribution Yard/EuroBridge

Do’s and don’ts for visitors

• No smoking in Volvo Cars Gent.

• Not allowed: mobile phones in the plant; photography.

• Keep on the walking aisles (green: pedestrian area; yellow: mixed pedestrian/fork lift traffic); follow the guide.

• Safety glasses obligatory in the welding plant.

• Don’t touch the car bodies or cars.

• Use doors instead of gates (fork lift traffic).

Volvo Cars Gent; PR & Communicatie; mdemey Issue date: Update 01/2011, Security Class: Public Page 23