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AUTOMOTIVE SWEDEN
NEWSLETTER
Claes Jerveland, President & CEO of Volkswagen Group Sverige
Climate-smart essential to VW
There has been a clear trend in recent motor shows: more and more carbon dioxide-lean vehicles. "Customers today demand - and expect - climate-smart vehicles. But at the same time, they're not willing to compromise on performance," says Claes Jerveland, President & CEO of Volkswagen Group Sverige, which annually imports over 80,000 vehicles for the Swedish market.
In 1948, just after the end of World War II, Scania became the general agent for VW in Sweden. That summer, the first VW bugs hit Swedish streets. The partnership with Scania gradually expanded, and a network of dealers began to grow. In 2002, Scania sold its ownership shares to Volkswagen AG and Svenska Volkswagen (as the company was then called) became a wholly-owned subsidiary of Volkswagen AG in Germany. In addition to VW, their product range now also includes Audi, Seat, Skoda and Porsche, which together account for over 23% of the market on new car registrations in Sweden. The addition of roughly a third of the light commercial vehicle market makes the Volkswagen Group the largest player on the passenger car and light commercial vehicle markets in Sweden.

"2010 was an all-time high for us, and our long-term plans include taking even more market shares in Sweden," says Jerveland. "Our Swedish market shares seem stable, although the financial crisis has taught us that this can turn quickly. Today, we're trying to work with a smaller inventory and make sure our costs aren't too high, so that we'll be prepared in case something happens again."

Downsizing trend among customers
The race for the most fuel-efficient cars is in full swing, which has led (among other things) to increased awareness among consumers. In February 2011, diesel vehicles accounted for 62% of new car registrations, which is a new record. During the same period, roughly 900 VW Golfs were sold, which puts the Golf in the number two spot for new car registrations, with the VW Passat coming in at a close second. "We try to have a wide selection among our cars in terms of fuel alternatives," says Jerveland. "For our VW Passat model, for example, you can choose between Gasoline, Ethanol, Diesel or Biogas. Our first hybrid is part of the SUV segment - the VW Touareg that we launched in 2010. This technology is now also offered in both the Porsche Panamera and the Cayenne. Because we still don't know what fuels will lead the way in the future, the Volkswagen Group is keeping a wide focus and aims to remain in the forefront in several areas."

Customers are demanding smaller cars, and soon it will be the premiere for the new mini-car that will enter the ring with the Toyota Aygo and the Peugeot 107. "As I said, the trend is moving toward smaller cars, and we're going to meet this trend with a new mini-car," continues Claes. "We're also developing an electric driveline, but it will take a little while longer before our electric vehicles are ready for mass production. We had the world-premiere for the electric-powered Volkswagen "Bulli" bus at the Geneva Motor Show. The electric motor in this model is supplied with energy from a lithium-ion battery and has a range of up to 300 km (186 miles). Naturally, the concept may even come to comprise one of Volkswagen's efficient gasoline and diesel engines as an alternative."

The government must put down its foot
Broad initiatives in fuel issues mean big development costs. "We hope that the government puts down its foot soon and sets an agenda for the future," concludes Jerveland. "It's just as important that we as manufacturers are given clear playing rules as it is that customers are given information on the situation and what applies. Buying a car is a big investment and it's important that customers feel secure in their purchases. The best thing for the Swedish automotive industry would be a wide-scale agreement in the EU. We need a harmonized, long-term European policy, and we need it fast."

FACTS - Global
VW Stats Total cars sold in 2010: 7.2 million
VOLKSWAGEN AG brand portfolio: VW, Audi, Skoda, Seat, VW Commercial Vehicles, Bentley, Bugatti, Lamborghini & Scania, and planned integration of Porsche.
Miscellaneous: Five-year investment plan comprising roughly 500 billion Swedish crowns through 2015.

FACTS - Sweden
Volkswagen Group Sverige Volkswagen Group Sverige: is the general agent in Sweden for Volkswagen, Skoda, Audi, SEAT, Volkswagen Commercial Vehicles, Porsche and Europcar.
New vehicle registrations in 2010: 67,470 passenger cars & 11,200 light commercial vehicles
Market share: 23% passenger cars & 29% light commercial vehicles

apr 11 2011
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