Volvo Car Research Articles

Strategic Analysis of Synergistic Effect on M&A of Volvo Car Corporation by Geely Automobile

Strategic M&A is focused on the development of enterprises within the same industry or related industries and has multiple effects such as economies of scale, structural integration of upstream and downstream industry chain, powerful alliances and complementary advantages. A major motivation of strategic M&A is the synergistic effect. In the upsurge of M&A at home and abroad, failed to achieve the synergistic effect is one of the important reasons of a high failure rate of M&A. This paper probes into the example of Geely Automobile’s M&A of Swedish Volvo Car Corporation in March 2010 from a strategic angle by analyzing the strategic decision-making, the competitive environment, the me-chanism of action, the evaluation and the realization risks of the synergistic effect, thus to provide references for the M&A practice of Chinese enterprises.

Volvo Cars, PowerCell developing fuel cells to extend vehicle range

In Sweden, Volvo Cars is initiating development of a fuel cell that can extend a next-generation electric car's operating range without contributing any additional CO2 emissions. The aim is to have two prototype cars ready for road testing in 2012.

Radical innovation in a small firm: a hybrid electric vehicle development project at Volvo Cars

The potential paradigmatic shift in technology from the internal combustion engine to electric propulsion via hybrid electric vehicles (HEVs) has been addressed by most automakers, and has produced very different outcomes. This paper uses the framework of core capabilities to discuss how the small automaker, Volvo Cars, made substantial progress in its HEV development using an approach based on limited resources and a low risk. A comparison with Toyota's successful but very resource-demanding Prius project reveals some factors contributing towards rapid development in a context of limited resources, including focused project objectives, tight collaboration with suppliers of the new technologies, reuse of existing technologies and an unaggressive, bottom-up approach to change the firm's values and norms and other core capability dimensions. This paper provides an empirical illustration of how a small company in a mature industry worked with radical innovation in a development project drawing on the combination of organizational slack, entrepreneurial employees and an extensive use of external (knowledge) suppliers.

A study of the use of concept selection methods from inside a company

Design methods have been studied by researchers for decades. Academia considers their impact on industry to be insufficient. The objective of this research is to understand the use and impact of design methods in the context of a specific company, Volvo Car Corporation (VCC), by describing the behaviour of engineers in relation to methods, to assist in the future development of design methods and tools. We mainly concentrate on concept selection methods because of their relevance in this company. The data presented is the result of qualitative research carried out during 4 years at VCC, where the authors were located as researchers. The research shows that many methods are employed besides those with an academic name, that some in-company methods used contain improvements to methods researched by academia, that some modifications to academic methods lead to unreliable results, and that there is a lack of objectivity in method modification. For these reasons, the authors suggest further research on understanding the principles of successful and unreliable modification of concept selection methods.

Learning to work with interdependencies effectively: the case of the HRM forum of the suppliers teams at Volvo Cars Gent

PurposeThe purpose of this paper is to profile the way in which Volvo Cars Gent (VCG) Belgium and its suppliers succeed in managing their interdependencies on HRM issues through a shared HRM collaborative, called the Suppliers Team Volvo Cars HRM forum (STVC‐HRM).Design/methodology/approachA case study approach is used to develop understanding of the critical factors that contribute to the forum's success.FindingsIt was found that the critical success factors concern the way STVC‐HRM members enacted trust, common ground, leadership, shared responsibility, and representative‐constituency dynamics.Research limitations/implicationsTo understand the Toyota system of successful collaboration and learning with suppliers, it is necessary to look into the actual assembler‐supplier relationships and practices developed.Practical implicationsBuilding lasting manufacturer‐supplier relationships is considered to be one of the elements that contribute to Toyota's competitive advantage in supply chain management. However, other organisations struggle to improve manufacturer‐supplier relationships despite applying seemingly similar principles. The paper helps in recognising and managing the main collaboration issues at hand.Originality/valueThe work suggests how to build and maintain deep mutually beneficial manufacturer‐supplier relationships through the VCG‐suppliers case. Other organisations that want to develop those much‐needed relationships may learn from the successful VCG‐suppliers way of doing things.

Digital Human Modeling Simulation Results and Their Outcomes in Reality: A Comparative Study within Manual Assembly of Automobiles

The objective of this study was to examine to what extent ergonomics simulations of manual assembly asks correctly predict the real outcomes in the plants and if recommended measures originating from ergonomics simulations are taken into consideration. 155 ergonomics simulation cases were used in the study and all cases were performed by nine simulation engineers at Volvo Car Corporation in Gothenburg. The evaluations of the ergonomics conditions of the simulated tasks were done by six professional ergonomists working at Volvo Car Corporation in Gothenburg. The results show that digital human modelling tools (DHM-tools) are useful for the purpose of providing designs for standing and unconstrained working postures. Furthermore, the design of various auxiliary devices and their needed space for movements is a prevalent use of DHM-tools. However, the study also identifies areas that require additional development in order to further improve the digital human modelling tools’ possibility to correctly predict a work task’s real outcome, i.e. hand access, push pressure and pull forces, leaning and balance behaviour and field of vision. Moreover, a better feedback of product and process changes and a more careful order description of simulation cases to the simulation engineers would lead to improved simulation results in current and future projects.

Extensive Introduction of Ultra High Strength Steels Sets New Standards for Welding in the Body Shop

In order to meet upcoming legislative demands regarding acceptable levels of CO2 emissions and to contribute to the fight against global warming, while also meeting customer expectations of reduced fuel consumption, all automotive OEMs are today focusing on lightweight engineering. Some of them, mainly low volume premium brands, have chosen to introduce fairly expensive lightweight materials such as aluminium and magnesium to meet these targets, whereas the main portion of high volume producers are trying to optimize the classic steel concept by introducing different grades of advanced high strength steels. Volvo Cars has decided upon a unique utilization of hot-formed, press-hardened, ultra high strength steel components featuring tensile strength levels in the order of 1 500 MPa, but on the other hand, producing these parts in very thin gauges for weight saving reasons. The first product launched according to this ultra high strength steel intensive concept was the 2008YM version of the Volvo V70 and its sibling, the cross-country version XC70, both built on the EuCD platform. The body contains several parts manufactured by hot-forming and press-hardening. The extensive use of this type of Boron alloyed steel challenged all welding methods commonly used in car body manufacturing, not least, traditional resistance spot welding. This paper will address the following topics: overview of the V70 body structure and utilization of materials, a brief description of the hot-forming, press-hardening process, the procedure for validating weldability before going into series production, lessons learnt from resistance spot welding trials of material combinations involving one or more boron alloyed steel parts, and recommendations for default welding data, influence on the manufacturing system, introducing electro-servo welding guns, adaptive weld timers and ultrasonic non-destructive weld quality checking, necessary revisions of existing spot weld requirements. The presentation will end with a glimpse at perspectives for future welding challenges in Volvo body shops, as the need for further weight saving will promote a considerable introduction of various new grades of advanced high strength steels.

THE CONCEPT OFINTERESSEMENT: THE STORY OF A POWER-SPLIT TECHNOLOGY FOR HYBRID ELECTRIC VEHICLES

Innovation processes are out of necessity and by definition always open-ended and embedded in social interests and beliefs. This paper reports a study of how a power-split technology for hybrid vehicles needed and found support and interest from a variety of social actors to reach the market. One of the principal challenges of innovators is to mobilise support and attract interest among relevant social groups; innovations are always, to some extent, dependent on their ability to conform to pre-existing practices and beliefs. Based on a study of a hybrid electric vehicle (HEV) project at Volvo Cars, this paper investigates how the concept of interessement can contribute to a better understanding of the innovation processes (Akrich et al., 2002a,b). It concludes that this concept contributes to interesting perspectives on the dual technological and social nature of the innovation process but that the idea of one central innovator driving the process all the way may not always be applicable.

WHIPS (Volvo Cars' Whiplash Protection System)—The Development and Real-World Performance

Objectives: Present the performance of WHIPS and identify possible next steps of soft tissue neck injury reduction potentials, based on rear-end real-world crash data. Methods: Front-seat occupants (above 14 years of age) have been analyzed regarding influencing factors on reported incidences of soft tissue neck injuries. The outcome of 1858 occupants in cars equipped with WHIPS and 663 occupants in Volvo cars of model year 1999 without WHIPS are studied with respect to WHIPS injury-reducing effect for different impact severities and injury durations. The occupants in WHIPS are further studied with respect to seating position and sitting posture, such as turned head and head-to-head restraint distance. Results: Soft tissue neck injury risk reductions are seen for occupants in WHIPS as compared to prior Volvo cars; mean values ranging from 21 to 47% depending on impact severity and symptom duration. Sitting posture (turned head and increased backset) increases soft tissue neck injury risks. Based on the self-reported injury data, a significantly lower risk was found for occupants facing straight forward with the head in close proximity to the head restraint as compared to the risk for occupants with rotated head and a larger backset. Even though the highest risk of soft tissue neck injuries is found in higher impact severity, the large amount of soft tissue neck injuries sustained at low impact severity emphasizes the need of focusing measures for crash avoidance. Conclusions: This study presents the development and real-world performance of WHIPS as well as identifies situations for further focus and challenges for the next generation of soft tissue neck injury protection and prevention, including areas such as occupant posture and crash avoidance.

A comparative study of digital human modelling simulation results and their outcomes in reality: A case study within manual assembly of automobiles

The objective of this study was to examine to what extent ergonomics simulations of manual assembly tasks correctly predict the real outcomes in the plants and if recommended measures originating from ergonomics simulations are taken into consideration. 155 ergonomics simulation cases were used in the study and all cases were performed by nine simulation engineers at Volvo Car Corporation in Gothenburg. The evaluations of the ergonomics conditions of the simulated tasks were done by six professional ergonomists working at Volvo Car Corporation in Gothenburg. The results show that digital human modelling tools (DHM-tools) are useful for the purpose of providing designs for standing and unconstrained working postures. Furthermore, the design of various auxiliary devices and their needed space for movements is a prevalent use of DHM-tools. However, the study also identifies areas that require additional development in order to further improve the digital human modelling tools' possibility to correctly predict a work task's real outcome, i.e. hand access, push pressure and pull forces, leaning and balance behaviour and field of vision. Moreover, a better feedback of product and process changes and a more careful order description of simulation cases to the simulation engineers would lead to improved simulation results in current and future projects. Relevance to industry DHM-tools are increasingly the major means used to perform ergonomics analyses of manual assembly tasks in the automotive industry, but there is still a need for improvements of the tools. It is of great importance to disseminate end users' experiences of the use of different DHM-tools so these can be developed and applied in a more efficient way.

Global Perspectives on the Use of Naturalistic Driving Data to Improve Highway Safety

Naturalistic driving studies provide a relatively new, powerful tool for understanding driver behavior. This collection of vehicle and driver data provides an opportunity to garner a greater understanding of driver behavior and safety issues than ever before possible. The purpose of this panel is to discuss how various car manufactures around the world are using or plan to use naturalistic driving data to improve transportation safety. Top researchers in the area of safety and human factors form this panel. The panelists in alphabetical order are: Joerg Breuer, Head of Active Safety (Mercedes-Benz - Germany); John-Fredrik Grönvall, Manager, Traffic Accident Research - Volvo Safety Centre (Volvo Car Corporation - Sweden); Raymond Kiefer, Structure and Safety Integration Center (General Motors - USA); and Tomohiro Yamamura, Manager, Advanced Engineering Group (Nissan - Japan).

Experiential learning in retrospect: a future organizational challenge?

PurposeThe purpose of this paper is to describe a retrospective reflection over unconscious, emergent learning among employees of an organization and to suggest how to capture these moments of experiential learning for future organizational learning.Design/methodology/approachAction research in organizations is undertaken in interaction with the employees of the organization studied. The outcome is characterized by a deep understanding of the individuals as well as of the course of events in the system. The paper therefore applies action research, focusing on the experiential learning from daily actions in the case organization at Volvo Cars’ production plant in Sweden.FindingsThe conclusion is that an evolution toward a learning organization, as exemplified by the case studied, is not identified until after it actually happens, i.e. in retrospect. It is suggested that the competence build‐up recognized in retrospect should become an integral part of future educational programs. The multidisciplinary competence established should also be considered when teams are set up for new projects.Practical implicationsFuture strategies for capturing learning are provided and summarized, to structure the capturing of learning as it takes place in the daily operation, to identify the individuals who initiate changes and let them act as learning ambassadors, to integrate multidisciplinary competencies in the early stages of projects, and to facilitate multidisciplinary cooperation along organizational processes, within and between firms.Originality/valueThe paper's contribution is the identification of and reflection about emergent learning that takes place in daily work tasks. It also provides suggestions for future strategies of capturing these experiential learning occasions.

Cooperating and competing in supply networks: Making sense of a triadic sourcing strategy

This paper introduces the concept of a “triadic sourcing strategy”. Triadic sourcing is a way for buying companies to nurture and benefit from cooperation and competition between two suppliers with partially overlapping capabilities. In contrast to hybrid sourcing strategies outlined in the literature-parallel and network sourcing—the distinctive feature of triadic sourcing is that the buyer actively creates interdependencies between two suppliers. To illustrate this principle and the characteristics of triadic sourcing, Volvo Cars’ use of two suppliers of seats is described. The paper asserts that triadic sourcing is a dynamic sourcing strategy that contributes to efficiency and innovation for the buyer and the two suppliers, together forming a triad that is subject to firm interdependence and network embeddedness.

CFD meshing for aerodynamics of the Volvo XC 90

With the aim to shorten the lead times for the aerodynamics simulations with CFD programs of Ansys Fluent significantly, the Volvo Car Corporation has analyzed, optimized and partially automated all process steps and tools. One of the changes was the use of the meshing program Harpoon from CEI as an alternative to the programs ICEM-CFD and TGrid, uses so far. To show that these changes were not made at the expense of quality, a comparison was made between simulations for a Volvo XC 90 on the base of an ICEM-CFD/TGrid mesh and a Harpoon mesh.

Volvo’s six-cylinder naturally aspirated inline gasoline engine

The six-cylinder 3.2-litre naturally aspirated gasoline engine is the base for a new family of six-cylinder all-aluminium engines to be used in Volvo cars and Premier Automotive Group (PAG) products. The engine replaces the successful 2.9-litre six-cylinder Volvo engine, first introduced in the early 1990s. It has improved performance, lower emissions and better fuel consumption, plus it addresses the need for a more compact engine for transverse installations with 6-speed automatic and manual gearboxes.

A corporate workplace model for ergonomic assessments and improvements

Several companies have developed their own company-specific models for ergonomic improvements. This study aims to describe and identify factors supporting and hindering the implementation and application of one such corporate model for ergonomic assessment and improvement. The model has been developed by Volvo Car Corporation and implemented at an assembly plant in Göteborg, Sweden. The model is unique as it is intended to be used by production engineers and safety representatives in cooperation. The process for assessment of musculoskeletal risks is standardised and participatory, which also supports identification of solutions. Interviews, questionnaires, observation and document studies were used to evaluate the use of the model. The model was found to improve participation and collaboration among stakeholders; provide a more effective ergonomic improvement process; visually represent the ergonomics situation in the company; and give legitimacy to and awareness of ergonomics. However, the model was found to be rather resource demanding and dependent on support from management and unions. In particular, a substantial training programme and regular use of the model are needed.

Evaluation of ergonomics in a virtual manufacturing process

This paper presents a study of the evaluation of ergonomics using virtual tools in a pre-production phase when verifying the manual assembly of the XC90 car model at the Volvo Car Corporation. The case study focused especially on the verification of visual demands in assembly work due to its complexity. The virtual development process was mapped in observations of the use of virtual tools and interviews with actors involved in the verification. Results show that computer manikins are viable tools in verifying ergonomics early in a development process and that they help to detect many problems prior to physical pre-series. There are, however, substantial improvement potentials, both in the software itself and, even more, in the process of using virtual tools. The study identified several factors that can increase the reliability of the results of computer manikin simulations (e.g. participative ergonomics and documentation issues). The special focus on visual demands shows the need of basic knowledge about human behaviour for making valid simulations. This case study stresses the need for knowledge about simulations in both analysis and interpretations in order to achieve maximum output from a virtual manufacturing process.

Working with concepts in the fuzzy front end: exploring the context for innovation for different types of concepts at Volvo Cars

Automotive firms are balancing the increasing needs for cost and time efficiency with the necessity of developing more innovative products to stand out on in a competitive market. The strive for efficiency has led to an increasingly structured development process with limited allowances for deviations. Previous academic work has pointed out the importance and embedded potential of the fuzzy front end, where new concepts still have the possibility to impact the new product development (NPD) process. However, most research has focused on the transfer of new technologies, while concepts based on e.g. customer or market knowledge have been more or less neglected. This paper discusses the need for alternative and contingent approaches in the front end of NPD to also consider the transfer of other types of concepts. More specifically, it addresses the need to distinguish between different types of concepts and to explore their different prerequisites in NPD. It is argued that customer‐ and market‐based concepts experience certain difficulties due to the history and power of technology in research and development (R&D) domains in the automotive context as well as a lack of support from the existing, formal processes. In this paper, we argue that all new concepts need to be conceptualized before being introduced to the NPD process, but that does not always suffice. Concepts other than technology concepts also need a contingent package to enable an evaluation in the context of the R&D process – they need to be contextualized. This paper draws on an in‐depth case study of Volvo Cars within a long‐lasting collaborative research setup. It is based on an interview study with key persons in the areas of concept work and NPD, and uses an insider/outsider approach.

Vehicles for innovation and learning: the case of a neglected concept car project

AbstractIn the competitive automotive industry product development processes are increasingly structured, leaving little room for learning and hence developing the knowledge needed for creating the innovative new products that are essential in order for automotive companies to remain competitive in the long run. Previous studies underline the importance of explicitly managing innovation and knowledge creation in order to successfully develop innovative products. It is our contention that the concept car constitutes an important arena for learning and creating useful knowledge in the automotive industry. This paper presents a detailed analysis of a concept car project at Volvo Cars (the YCC project), tracing how it was used from a learning perspective. Based on this longitudinal study, this paper argues that there is a need to manage more explicitly the learning opportunities provided by concept car projects in order to leverage on the knowledge created. It also discusses some of the barriers to learning that are illustrated by the case study. Finally the paper suggests further research directed towards innovative activities, such as concept cars in order to better understand the nature of their interface with established NPD processes. Copyright © 2007 John Wiley & Sons, Ltd.

Viewpoint: Bertil Turesson on PLM

'Viewpoint' presents current trends, research directions, end user perspectives, and vendors' strategies that are shaping PLM today. 'Viewpoint' brings a pragmatic perspective focused on the 'what', 'why' and 'how' of PLM. In this first edition of the column, Bertil Turesson, PLM Strategist, Volvo Car Corporation is interviewed to give his perspectives on PLM. Bertil's perspective on PLM is unique because he has a historical perspective dating back to the introduction of 3D CAD, through the development of CAD data management, and PLM at Volvo, while at the same time being a part of the evolution of 'PLM theory'. Bertil emphasises PLM as a holistic business approach with aspects of Process, Methods, Information and Tools, as well as the importance of corporate culture as determining the success of PLM initiatives in corporations. Such an approach to PLM is particularly challenging to corporations with a strong functional-hierarchical structure as found in large traditional manufacturing companies. Related to this is the challenge in creating academic PLM programmes with the appropriate cross functional scope that spans engineering, computer science, business and organisational behaviour.