Following the move by Jaguar Land Rover (Malaysia) Sdn Bhd (JLRM), a joint venture between SISMA Auto and Sime Darby, to consolidate its retail operations in Malaysia, SISMA Auto has announced the opening of SISMA Auto Hub, a new premium multi-brand 3S centre to buy, sell or service any brand of luxury car.
Located at the former Jaguar Land Rover 3S centre in Glenmarie, Shah Alam, Selangor, the new SISMA Auto Hub Glenmarie has a 14-car showroom and a 16-workbay service centre.
While SISMA Auto still retains significant interest in the Jaguar Land Rover business as a joint venture partner in JLRM, it now plans to leverage its more than 25 years as a franchise dealer for Jaguar, Land Rover and Volvo to offer the same premium 3S experience for any brand of luxury car.
Continuing to grow
The company aims to continue to grow with the Volvo Cars brand in Malaysia and has started construction of its flagship Volvo 3S facility in Sungai Besi, Kuala Lumpur. The 50,000 square foot facility spread over 4 floors, represents a significant expansion of SISMA Auto’s Volvo business. It is expected to commence operations by the end of 2022.
Aside from Jaguar Land Rover (Malaysia) and SISMA Auto Hub, the company currently operates two Volvo outlets – a sales showcase atBukit Bintang and Service and Selekt Centre in a Glenmarie, next to the SISMA Auto Hub.
“We believe that a premium 3S experience should be available to all luxury car owners. At SISMA Auto Hub, our highly trained team will provide the same level of exceptional service that you have come to expect from SISMA Auto,” said Syed Khalil bin Syed Ibrahim, Managing Director of SISMA Auto.
Today, Volvo has six SUV models in its range (including electrified variants), all of which are selling well around the world. However, the company was actually late into this segment which began its rapid growth in the 1980s. Mitsubishi Motors and Isuzu had made 4×4 workhorse vehicles into more comfortable dual-purpose vehicles that could be used as alternatives to cars, and then Toyota and Honda lit the ‘SUV mania’ in the mid-1980s with their small SUVs.
Very quickly, other manufacturers began to come out with SUVs, with even the German premium brands including Porsche offering at least one model. But Volvo seemed slow to have a SUV in its range and on occasions when the Swedish executives would be asked, their response would be that they were working on a model but it had to meet the high safety standards of Volvo before they could offer it to the public.
Finally, in January 2002, at the North American International Auto Show, Volvo finally introduced its first SUV – the XC90. Some thought that the carmaker had joined the SUV segment too late although it was true that Volvo was preoccupied with the safety aspects of SUVs, which delayed its new model.
Volvo’s concerns were in part related to the truck-like driving properties which contributed to making them significant roll-over accident statistics. Such vehicles, with extra ground clearance, are taller than passenger cars and so the centre of gravity is higher up, making it easier for the vehicle to tip over in certain cornering situations.
Hans Wikman, Project Director of the XC90, recalls his feelings when the management team inspected the three design alternatives under the burning desert sun at the Arizona Proving Ground in America in May 1999. “We in the project team were a bit tense. The SUV program had been canned twice before. Now we kept our fingers crossed that our favorite design was so good that the executives would approve it without hesitation. And that’s exactly what happened,” he said.
Solving inherent safety issues
But they had to solve the safety issues and were determined to do so when the XC90 was cleared to proceed towards production by Volvo’s top management. And Wikman and his team were able to come up with ingenious approaches to addressing the known issues of SUVs. At that time, Volvo was part of Ford so there resources were shared in doing research on the issues. Ford too wanted active systems that could make its SUVs safer.
The solution was a system called Roll Stability Control (RSC), which was an automotive world-first when it was introduced in the XC90. Using a gyro-sensor, RSC measures the degree and rate at which the vehicle’s body is leaning and if it senses a rollover is about to occur, the system is activated. The electronic stability control system engages, engine torque is reduced and one or more wheels are braked until the car has regained its stability.
How Roll Stability Control in the XC90 worked.
Cooperation between the reinforced roof structure, seat belt pre-tensioners and inflatable side curtains helped create superb roll-over protection for all 7 occupants. This world-class safety level was demonstrated in an unusually tangible way when the Volvo invited the world press to watch a violent roll-over test with the XC90 outside the state-of-the-art Safety Centre in Gothenburg, Sweden.
Demonstration in front of media
The video from the 2002 event, still available on YouTube, shows how the XC90 rolls over three times before ending up on its right side. “The roof structure was more or less intact after the car finished rolling. The spontaneous applause from the media representatives confirms that we made a real impression with this unique demonstration,” said Wikman.
The strength of the XC90’s structure was demonstrated in front of international media when the SUV was rolled sideways a few times, and the cabin area remained intact.
The safety level is also emphasized in the Volvo Car Corporation’s research. The accident investigation files include remarkably few accidents where XC90 occupants have been killed or sustained severe injuries.
Besides the RSC system, the other world-firsts in the new SUV were inflatable side curtains for all three rows of seats, an integrated sliding centre booster seat for children in the second row and seatbelts with pre-tensioners for all seats. The pre-tensioners, now common in cars, remove slack from the seatbelt when there is a collision and the airbags are about to deploy. By doing so, the restraint is more effective and can help to reduce injuries in some cases.
Female feedback for the design
Doug Frasher, working at the Volvo Cars Monitoring and Concept Center (VMCC) in California, was the proud father of the winning design that became the production XC90. And just like the first Ford Escape, the model benefitted from having a female group provide feedback on the design and features. The multi-background reference group, including Swedish Hollywood actress Maud Adams, inspired the shape of the XC90 by asking for masculinity instead of the traditional ‘macho look’ of most SUV’s,
“The model we showed to the management was almost identical to the production XC90 we revealed in Detroit. We had done our homework well, much thanks to our female reference group. A majority of SUVs were driven by women and our ladies gave us great input,” said Frasher.
“I remember one of the ladies making a sweeping gesture that almost sketched the sleek shape of the bonnet flowing up on the A-pillar. We put a lot of effort into creating a design that felt strong and protective without the impression of sheer size. The XC90 was muscular, but not aggressive,” he recalled.
A success story for Volvo
Volvo’s original target for the first XC90 was 50,000 units per year worldwide. However, the model became so popular that the figures grew rapidly until they peaked at 86,000 units in 2005. The US market imported up to 38,800 units in one year. That made it Sweden’s most valuable export product, with total yearly export value over US$6.2 billion in the peak years.
Volvo’s SUVs range 20 years after the first SUV model was introduced. The three models are also available with electrified powertrains.
Ever since the radio could be installed in a car, entertainment while motoring has been constantly evolving in tandem with the technologies of different decades. What used to be audio systems before are now called infotainment systems – providing a combination of information and entertainment of different kinds.
In the old days, a radio in the car was the only form of entertainment on a long journey.
In time, we’ll be travelling in cars that can operate on their own, driving safely to wherever we want to go. Without the need to control the car or even pay attention to the road ahead, the driver will have more time to do other things – read a book, watch a movie, listen to music or even play videogames. Such a scenario means that infotainment systems in cars will have to change and provide even more features and capabilities.
Volvo is already starting on this evolution and is developing next-generation infotainment systems that can be offered in the near future. For example, using Qualcomm Technologies’ Snapdragon Cockpit Platforms takes the carmaker’s Google Android Automotive-based infotainment system to the next level. By leveraging Volvo Cars’ and technology firm Qualcomm’s in-house R&D competence, the companies will improve the overall capability of Volvos powered by Google Android to become faster and more responsive.
Qualcomm’s Snapdragon Cockpit Platforms is designed to be a central hub for high-performance computing. It is capable of fulfilling highly demanding graphics, audio and artificial intelligence requirements in the forthcoming Polestar 3 SUV and Volvo Cars’ upcoming fully electric SUV, all while having a very low power consumption. Using the latest Snapdragon Automotive Platforms, the next generation infotainment system will be more than twice as fast, while graphics generation will be up to 10 times faster.
The continued partnership between Volvo Cars and Google will also see Volvo being the first carmaker to directly integrate its cars with Google Assistant-enabled devices. This integration basically turns cars into smart devices.
This planned direct integration allows for a seamless connection between Google Assistant and cars to date, letting Volvo drivers control functions in their car by issuing voice commands to Google Assistant-enabled home and mobile devices. By pairing their car with their Google account, drivers can directly talk to Google in their car and remotely control a variety of functionalities, such as cooling it down on a hot day or just locking the doors in case they forgot to do so.
“Volvo Car Group was first to introduce Google technology and services in our cars and we are now looking to be the first to integrate fully with Google Assistant-enabled devices – it is a natural next step in our partnership with Google,” said Henrik Green, Chief Product Officer at Volvo Cars. “This integration allows us to improve the customer experience immensely, as it gives customers the possibility to easily and securely manage their car while at home or on the go, through any personal device that has Google Assistant.”
Finally, YouTube video playback will also come to all Volvo cars with Google built-in. YouTube will be the first video platform to be featured and available for download in Volvo cars on Google Play. This is the beginning of enabling video streaming in cars. Volvo is providing YouTube video as an enjoyable way to pass the time during stop with an EV to recharge. However, mindful of safety, videos will be allowed to be played only when the car is fully stationary.
“Allowing our customers to watch videos while charging or when waiting to pick up their children from school is part of our promise to make their lives better and more enjoyable,” said Green. “With YouTube and other major streaming services coming soon, our customers can enjoy their charging break instead of seeing it as just a hassle – making electric car ownership that bit easier.”
“The car is a great venue for enjoying video and audio, so I would not be surprised if this means that people spend more time in their Volvos, even when they are not going anywhere!” added Green.
Before SUVs appeared, the stationwagon was the ideal multi-purpose vehicle to haul a lot of stuff. Sedan-like but stretched a bit to have a big boot space, it was as low as a sedan and just as comfortable. Volvo, which had been making stationwagons since 1953 when it introduced the Duett, became a leader in the stationwagon segment in the 1980s, especially in Europe where its models were popular.
The Duett had been conceived as a vehicle which could be used for work as well as for family use, so it was the original dual-purpose vehicle (a term which came into use in the early 1980s when the first 4x4s like the Mitsubishi Pajero and Isuzu Trooper were introduced). The success of the Duett encouraged the Swedish carmaker to continue making such cars and in the years that followed, it would always have a stationwagon variant of the prevailing model series. Malaysian motorists will remember the police using Volvo stationwagons in the 1970s and then the 850 stationwagon in the 1990s for highway patrol work.
And although in the 21st century, it has been selling more SUVs than sedans and stationwagons, the company has assured stationwagon fans that it will continue to offer such models in future. These will be alternatives to the SUV and crossover ranges and will eventually be fully electric. They are currently designated as S and V models although these may change as the future models will have more aerodynamic forms. Volvo had originally wanted to designate its stationwagons as ‘F’ – for ‘Family’ – when it launched the first V40. However, Ferrari sent a note of protest and said that a ‘F40’ would mislead people into thinking of the sportscar made by the Italian carmaker which had the designation. So Volvo switched to ‘V’, which it said meant ‘Versatility’.
In the US market, which has been a huge consumer of Volvo stationwagons for decades, some of the models are no longer being sold (which led to the rumour of Volvo stopping stationwagons altogether). However, the company will still sell some versions of the current models and in Malaysia, the latest V60 Recharge T8 has just gone on sale with a price of RM287,474 for the Inscription version (the only one available).
This is an electrified PHEV model with a plug-in hybrid Drive-E powertrain. There is a turbocharger and supercharger which boost output to 320 bhp/400 Nm, to which is added the output of an electric motor that can generate up to 407 ps/640 Nm. A lot of power to all 4 wheels which provides effortless cruising even when the 519-litre boot is fully loaded.
As a PHEV, the V60 Recharge T8’s battery pack can be recharged from an external power source rather than just being recharged while on the move. The time for recharging varies depending on the type of charging used. If from a normal household power socket, each hour of charging can provide 7 to 14 kms but if using DC fast-charging 150 kW station, then in 10 minutes, the battery pack can ‘fill up’ for up to 100 kms of range at a 150 kW station. Shell recently started operations of a DC fast-charging station at its station near Tangkak in Johor and will establish a network of 12 stations along the North-South Expressway.
With a fully charged battery pack, it can travel a claimed 49 kms on just electric power but in normal driving, the system will be continuously varying the use of the two power sources for optimum efficiency. Unlike a fully electric powertrain which will come to a standstill if the battery pack is empty, a PHEV like the V60 Recharge T8 will still be able to run using its petrol engine.
As for the design, the V60 Recharge T8 maintains the sleek form which has been around since the days when Peter Horbury, the company’s former design head, declared that ‘we kept the toys and threw out the box’ as he introduced the C70 coupe in 1996. Thereafter, Volvo stationwagons no longer looked like boxes on wheels and had a streamlined profile that added elegance.
The interior too is what you would expect of a Volvo with their Scandinavian ambience and focus on functionality. These days, the emphasis is on using sustainable materials and ensuring that the cabin air is as clean as possible. And although the environment is like that of a premium sedan, there is still the versatility of a SUV with rear seats that fold down and extend the length of the boot.
“The addition of the Volvo V60 Recharge T8 as a PHEV brings Volvo another step forward in our electrification strategy. We are one step closer to realising our aspirations in having a fully electric line-up by 2030 as we move further into a more sustainable future,” said Charles Frump, Managing Director of Volvo Car Malaysia.
Carmakers wanting to enter the US market have often found that the west coast state of California is a good place to start. It seems that consumers there are receptive to new trends and new cars, so Volvo Cars will introduce its unsupervised autonomous driving feature, Ride Pilot, to customers in the state of California first.
‘Unsupervised’ would mean that Ride Pilot offers the highest level of autonomous motoring where humans do not have to be involved at all. It’s the stuff of science fiction movies and will free up more time for the occupants to do other things. Whether we can call it ‘driving’ any longer is something that will need to be debated.
In tandem with the introduction of Ride Pilot, the company is also setting a new standard for safety, with over-the-air (OTA) software updates in combination with a state-of-the-art sensor set-up. The software is developed by autonomous driving software company Zenseact, together with Volvo Cars’ in-house team of developers, and developers from Luminar, one of its technology partners.
The sensor set-up consists of more than 2 dozen sensors, including Luminar’s cutting-edge Iris LiDAR sensor, which will be tightly integrated with the developed software. Luminar’s LiDAR sensor will complement 5 radars, 8 cameras and 16 ultrasonic sensors in Volvo Cars’ upcoming fully electric SUV. This standard sensor set-up provides excellent vision and perception reliability. Together with continuous, over-the-air software rollouts, the system will ensure full redundancy and enable Volvo Cars to achieve safe autonomous driving with Ride Pilot.
For autonomous motoring to be safe with no supervision by humans, the vehicle will have to be able to scan all round with various sensors to detect other vehicles and hazards. The sensors will include cameras mounted in the windscreen like the ones shown below.
Rigorous testing and verification
While this software-sensor combination, and the safety it enables, will be standard, available from day one on the new SUV and improved over time, Ride Pilot will be made available to customers only once it has gone through Volvo Cars’ rigorous verification and testing protocol. This includes validation of the technology as safe for use on highways in a number of varying conditions. This new flagship for the company will be revealed later this year.
As part of this verification process, Volvo Cars is already testing autonomous driving functionalities on roads in Sweden together with Zenseact, and collecting data across Europe and the USA. By the middle of this year, the company intends to begin testing on roads in California (pending approvals from relevant authorities), where the climate, traffic conditions and regulatory framework provide a favourable environment for the introduction of autonomous driving.
But where and how far autonomous driving will be permitted is not known yet. In some countries where autonomous vehicles are permitted to operate, only limited sections of public roads can be used. On such roads, the surrounding environment is properly prepared to ensure that the imagery systems can correctly function to detect and identify road hazards and signage.
More free time on a journey
The name ‘Ride Pilot’ implies what the driver can expect: when the car is driving on its own, Volvo Cars takes responsibility for the driving, offering the driver comfort and peace of mind. By using Ride Pilot, drivers will be able to free up time while driving, and spend it on secondary activities such as reading, writing, working or socialising. The feature can also help drivers arrive at their destination rested and recharged, by reducing the mental strain that may come with driving, especially in traffic jams or heavy traffic.
Without the need to supervise what the car is doing, the driver will be able to do other things like read or even talk on a phone without breaking any law. Perhaps the occupants could even sleep on the journey – but can it be called ‘driving’ then?
“We are proud to announce the planned US launch of our first truly unsupervised autonomous driving feature, as we look to set a new industry standard for autonomy without compromising safety,” said Mats Moberg, Head of Research and Development at Volvo Cars. “Having Zenseact’s brand-new AD software and Luminar’s LiDAR standard in our new fully electric SUV is a game-changer for Volvo Cars, as well as for automotive safety and autonomous driving.”
Volvo Car Malaysia has updated its XC60 and apart from cosmetic changes and added safety features, the significant new feature is integration with Google Services. This is the outcome of the partnership between the Swedish carmaker and Google which sees a first-of-its-kind built-in infotainment system complete with a host of Google Services.
Volvo Cars is the first company to team up with Google to integrate an infotainment system powered by Android with Google apps and services such as Google Assistant built in. This means that Volvo drivers can get the same sort of apps that they have on an Android smartphone integrated with their infotainment system and use voice commands to manage and operate them.
Of course, there is now also Android Auto which can mirror apps from a compatible smartphone onto infotainment systems but having the apps and services as part of the system is even better.
Additionally, with the Volvo Car App and Connected Services, the driver can be easily connected to the XC60 using a mobile device. This enables convenient remote control of several functions, eg cooling down the cabin by starting the air-conditioner, checking vehicle status, locking/unlocking the doors, etc.
Referring to the latest model as ‘The Smarter XC60’, Charles Frump, Managing Director of Volvo Car Malaysia, said that with Google Services, customers can get the most intuitive infotainment experience in the automotive industry. “It fully delivers on our brand promise to provide the freedom to move in a personal, sustainable and safe way,” he said.
The latest XC60, priced from RM325,449 (without insurance and sales tax), has a new grille, new front bumpers and a new exterior colour. For the Recharge T8 version, there are also new 19-inch 6-multispoke black diamond-cut alloy wheel design and a Bowers and Wilkins sound system as standard.
As an electrified model, the XC60 uses hybrid technology with its 2-litre 4-cylinder petrol engine that has a supercharger as well as a turbocharger. The combustion engine output is 407 bhp/640 Nm with the electric motor contributing 87 bhp/240 Nm. All that power goes through an 8-speed Geartronic automatic transmission and propels the car from 0 to 100 km/h in a claimed 5.3 seconds.
In the past, that sort of performance would mean high consumption but the XC60 is said to be able to do up to 45 kms/litre. This is because the powertrain does not run on the petrol engine all the time and depending on conditions, it use the electric motor which means no fuel is consumed. There is even a mode that can ‘lock’ the powertrain in pure electric mode but only for a limited distance as it will be constantly drawing on power from the lithium-ion battery pack.
Volvo built much of its reputation on safety and the XC60 ensures that is maintained. While the early Volvos had impressive passive safety (which protects occupants when an accident occurs), today’s models have more advanced Active Safety systems. These Advanced Driver Assistance Systems (ADAS) can help to avoid collisions, keep the car in its lane and even stop the car at a junction if another vehicle is approaching from either side (but the driver is unaware). Small cameras provide a simulated image of the area around the vehicle so the driver can spot hazards and also park more precisely.
Manufacturing processes in the auto industry have been continuously improving and, together with better materials, automotive parts have been able to last longer. This has given carmakers the ability to progressively lengthen warranties which, 40 years ago, were just a year long or maximum of 20,000 kms after first registration.
Today, many companies offer coverage for a period of 5 years or longer, and there is no limit on mileage. However, owners must follow the schedule of maintenance services and inspections, and visit authorised service centres in order to keep the warranty valid. This is a reasonable condition since the vehicle also needs to be kept in good running condition which will help it to last.
Since manufacturers are confident enough to give longer warranties, it stands to reason that the parts in a vehicle are also long-lasting and this has led Volvo Car Malaysia to offer the ‘Customer Lifetime Parts Warranty’ programme. Under this new programme, owners who have purchased and installed Volvo genuine parts at an authorised Volvo dealership from October 1, 2021 will be eligible to for the warranty. The coverage commences from the date the part is purchased and is valid as long as the vehicle remains under the ownership of the registered owner.
The Customer Lifetime Parts Warranty does not cover every single item, especially wear-and-tear items like windscreen wiper blades and light bulbs. Such items are also usually excluded from the general warranty unless there is a definite manufacturing defect.
Most other warranties on replacement parts are for a limited period so Volvo Car Malaysia’s Lifetime coverage will give more peace of mind. In the event that repair or replacement for any genuine Volvo parts are due to a material or manufacturing defect, Volvo Car Malaysia will repair and replace the parts free of charge.
Those with older Volvo models who have not visited an authorised Volvo dealership for more than 2 years can also enjoy this lifetime warranty programme. However, they need to first bring their vehicle to an authorised service centre for the Volvo Health Check. This is to ensure that the vehicle is in good condition and has not been modified or tampered with in any way.
Modifications can cause problems which can lead to parts wearing out faster or even failing. For example, using wheels that are not original and are of an ‘extreme’ size could place stress on certain areas, resulting in damage or failure. This would obviously not be Volvo’s fault and cannot be covered.
Older models can also enjoy the lifetime parts warranty if they meet certain conditions,
If the vehicle check confirms the vehicle is in good condition, then the owner can purchase parts under the warranty programme. However, the vehicles must be sent to any authorised Volvo dealership for subsequent services for the warranty to remain valid. This means that if the owner has not been using authorised service centres after the original warranty ended, they will now have to do so for the rest of the time they own the vehicle.
“This new offering is part of our commitment to provide the best aftersales services for our customers. Customer satisfaction have always been a pivotal aspect for Volvo, and through this warranty programme, our customers can now enjoy the benefits of decreased maintenance costs and experience the quality offered by Volvo, in the years to come,” said Charles Frump, Managing Director of Volvo Car Malaysia.
Cars and shoes… in some ways, they can be considered have similar functions since both ‘transport’ people around, though in very different ways. Cars use energy from the combustion engine or electric motor to move but with shoes, you have to provide your own energy. So it’s not unusual that on World Car-Free Day (September 22), Volvo Cars Canada and Casca footwear will launch a limited-edition sneaker. Available in Canada for $198 (about RM645), the shoes have been inspired by the fully electric Volvo XC40 Recharge.
“At Volvo Cars, we are committed to setting the highest standards of sustainability in mobility and that goes beyond electrifying our fleet to transforming all aspects of our business. The shoe we have created with Casca in celebration of World Car-Free Day, is one way to recognize the many steps we are taking on our journey to climate neutrality,” said Matt Girgis, Managing Director of Volvo Car Canada Ltd.
Volvo XC40 Recharge
For a carbon-neutral future
As would be expected, the shoe is all about sustainability in the long term, and both brands have a shared vision for a carbon-neutral future. On Volvo Cars’ part, there is a commitment to reducing lifecycle emissions per vehicle by 40% by 2025 and producing only fully electric vehicles by 2030. Casca’s adoption of water-based, low-energy UV treatment processes coupled with their 2-year product warranty are a testament to their ‘buy less, waste less’ philosophy.
“The Volvo XC40 Recharge was designed to reduce environmental impact, so it was the perfect inspiration for the shoe,” said Kevin Reid Lead Director and Co-Founder, Casca. “Through this collaboration, we’re also celebrating many design firsts – our first shared design, our fastest production to market, and new recycled materials we’ve never used before.”
Scandinavian influences
The goal was to create a shoe rooted in conscious design. Scandinavian influences of the XC40 Recharge were purposefully integrated for a collaborative new interpretation of Casca’s trademark clean lines. For instance, the ‘Thor’s hammer’ headlight influence can be seen in the linework and panelling, delivering a more performance-inspired aesthetic to Casca’s popular Avro silhouette.
The Swedish flag is represented on one shoe tag, while the classic Casca yellow can be seen on the other, honouring the collaboration between the two brands as well as minimalist, Scandinavian design.
Recycled materials
Of course, an important aspect of the shoe is how it is made and its environmentally-friendly credentials come from having 10% of each sole made from recycled car tyres, the first time this material has ever been used in a Casca shoe as part of an intentional repurposing and recycling of materials. Furthermore, 7 recycled plastic bottles are used to make the yarn for each breathable, flexible knit upper.
Those two features are a preview of some of the initiatives by both companies. By 2025, Volvo Cars aims to increase the share of recycled and bio-based materials in their vehicles by 25%. By 2022, all of Casca’s knit uppers will be made from recycled or renewable materials.
By 2025, Volvo Cars aims to increase the share of recycled and bio-based materials in their vehicles by 25%.
“We know that being advanced isn’t just about great design and technology; it means implementing ethical and sustainable practices,” said Braden Parker, CEO and Co-Founder, Casca. “This is just one of many similarities we see between our brand and Volvo Cars, we both want to create something with intention that lasts.”
Volvo Cars has signed an agreement with its parent company, Geely Holding, to acquire Geely Holding’s stake in the companies’ joint ventures in China. This development means that the Swedish carmaker, acquired by Geely from Ford in 2010, will take full ownership of its car manufacturing plants and sales operations in the biggest car market in the world
The acquisition of an additional 50% of the shares in Daqing Volvo Car Manufacturing and Shanghai Volvo Car Research & Development will further strengthen Volvo Cars’ position in China, its largest market, and maximize exposure to one of the fastest growing regions globally.
Volvo factory in Chengdu.In 2017, Volvo began sending the S90 sedan to Belgium from its Daqing factory via the China-Europe railway link. The connection to Europe is faster than the traditional sea route from Asian ports.
Full control over operations in China
Although the two joint venture companies are already fully included in Volvo Car Group’s financial statements, Volvo Cars’ share of their net income and equity will increase following the transaction. “With this agreement, Volvo Cars will become the first major non-Chinese automaker with full control over its Chinese operations,” said Hakan Samuelsson, Chief Executive of Volvo Cars.
“Geely Holding Group and Volvo Cars are continuously evaluating the best way to collaborate and structure operations within the wider Group. These two transactions will create a clearer ownership structure within both Volvo Cars and Geely Holding,” said Geely Holding CEO, Daniel Donghui Li.
Acquisition includes R&D facility
Volvo Cars has grown significantly faster than the average market in China in recent years and will continue to invest in the country to maintain the strong growth trend. Following the transactions, Volvo Cars will have full ownership of its manufacturing plants in Chengdu and Daqing, its national sales company in China and its R&D facility in Shanghai.
The transactions will be completed in two steps, starting in 2022 when the joint venture requirement for auto manufacturing in China will be lifted, and expected to be formally completed in 2023. The transactions will, of course, need regulatory approvals.
Volvo dealership in Beijing.
Strong growth in China in spite of pandemic
Volvo Cars has seen strong growth in the Chinese market in recent years. In 2020, it sold 166,617 cars in China, an increase of 7.5% over 2019 performance and its eighth consecutive sales record in the market in spite of the pandemic. In the first half of 2021, sales increased 44.9% compared to the same period in 2020, and by 40.1% compared with the same period in 2019.
Vaccination does not make you immune to COVID-19 infection. You can still get infected and you may not show symptoms but spread the coronavirus. Do not stop taking protective measures such as wearing a facemask, washing hands frequently and social distancing.
In order for autonomous vehicles to function safely, especially when the need for driver intervention is not required, sensor technology must be extremely precise and detailed. While the computer can make intelligent decisions to control the movements of the car, the sensors are its eyes and must collect data of the surroundings and the potential hazards.
At present, many cars already have radar and camera sensors to scan the road ahead, enabling identification of pedestrians and other vehicles. Even earlier, there were already sensors to detect vehicles in the blind spot and this has advanced to include vehicles that approach from the left or right as a vehicle is reversing out of a parking bay.
With the next generation of the Volvo XC90, to be revealed in 2022, state-of-the-art sensors will be used which will include LiDAR (Light Detection And Ranging) technology developed by Luminar and an autonomous driving computer-powered by the NVIDIA DRIVE Orin system-on-a-chip, as standard. This will be industry-leading safety technology that can help to save even more lives as the company sets a new benchmark for automotive safety.
By combining this state-of-the-art hardware with Volvo, Zenseact and Luminar software for the next generation of its well-established collision-avoidance technology, Volvo Cars aims to reduce fatalities and accidents as a whole with this new safety package.
“Volvo Cars is, and always has been, a leader in safety. It will now define the next level of car safety,” said Hakan Samuelsson, Chief Executive of Volvo Cars. “By having this hardware as standard, we can continuously improve safety features over the air and introduce advanced autonomous drive systems, reinforcing our leadership in safety.”
With the new safety package, Volvo Cars aims to reduce collisions, and the reduction rate is anticipated to accelerate over time via over-the-air software updates. The new technologies are also designed to specifically address those traffic situations which result in a large portion of the remaining severe injuries and fatalities found today.
“In our ambition to deliver ever safer cars, our long-term aim is to achieve zero collisions and avoid crashes altogether,” said Henrik Green, Chief Technology Officer at Volvo Cars. “As we improve our safety technology continuously through updates over the air, we expect collisions to become increasingly rare and hope to save more lives.”
Once introduced, the technology is expected to mature over time, becoming more capable and allowing the car to assist and improve the capabilities of a human driver in safety-critical situations. Whereas previous generations of technology largely relied on warning the driver for potential immediate threats, this new safety technology will, over time, increasingly intervene as needed to prevent collisions.
While saving lives and preventing injury remains the company’s first priority, Volvo Cars also sees a potential added benefit of lower insurance costs as car crashes involving Volvo cars become increasingly rare.
Beyond the sensor suite and Artificial Intelligence computing performance, Volvo’s forthcoming flagship model will also come with back-up systems for key functions such as steering and braking that make it hardware ready for safe, unsupervised autonomous driving once available.
These back-up systems, alongside LiDAR and the computer software, will enable the Highway Pilot functionality, developed in-house together with Volvo Cars’ autonomous driving software development company, Zenseact. An autonomous driving feature for use on motorways, the optional Highway Pilot will be activated for customers when verified safe and legally allowed for individual geographic locations and conditions.
Earlier this year, Volvo Cars announced it will use NVIDIA technology to centralise computing. The core computer and autonomous drive computer, both powered by NVIDIA technology, allow its cars to become safer, more personal and more sustainable over time through over-the-air updates, while also providing it with the computing power required for vision and LiDAR processing. The company has already been using the high-performance, energy-efficient NVIDIA DRIVE since 2016.
NVIDIA Orin system-on-a-chip maintains safety architecture.
In 2019, the Volvo Group (which produces commercial vehicle models) also signed an agreement with NVIDIA to jointly develop the decision-making system of autonomous commercial vehicles and machines. Utilizing NVIDIA’s end-to-end artificial intelligence platform for training, simulation and in-vehicle computing, the resulting system is designed to safely handle fully autonomous driving on public roads and highways.
