Volvo accelerates transformation: technology drives brand, system wins market.

? On the eve of the 2023 Shanghai Auto Show, Volvo Cars held "Volvo? Technology? Day "event, and brought a new flagship pure electric SUV? EX90. On the basis of the original pure electric platform, the car adopts the advanced central electronic and electrical architecture in the industry, and is equipped with many innovative safety functions, which sets a new safety benchmark in the era of pure electric, and also demonstrates Volvo's determination to keep moving towards the vision of "zero collision".

At the same time, Volvo also released the "Tree of the World" intelligent security system. In fact, this is synonymous with Volvo's intelligent safety system based on the original pure electric platform, which further expands traffic safety from the traditional active and passive safety, and integrates the trend of electrification and intelligence into four different safety spaces: inside, outside and people-oriented, forming a comprehensive safety system in the new era.

After the event, Netcom had in-depth communication with An Boyang, Chief Commercial Officer and Deputy CEO of Volvo Car Group, Yuan Xiaolin, Senior Vice President of Volvo Car Group and President and CEO of Volvo Car Asia Pacific.

Amboyang said that Volvo has been doing the right thing, that is, winning customers with better quality and better safety. Today, Volvo has also become a technology-driven brand. From internal combustion engine to full electrification, Volvo will be transformed into a pure electric luxury car enterprise in 2030. He is very confident that China consumers will accept such a Volvo.

Yuan Xiaolin emphasized that for Volvo, the most essential things are products, brands and systems. As long as these three points are well done, there will be a better foundation and greater room for development in the future. In particular, system strength is the key to help brands survive in the face of market changes.

In his view, enterprises always have room for improvement, and strategic planning, implementation, quality management methods, technology selection, partners, talent exploration and training are all worth improving, which is the improvement of system capabilities. Real investment in these areas will certainly pay off.

How does Volvo view the current situation of the industry? What attitude will Volvo take to deal with the complex competitive market? Yuan Xiaolin believes that there is no essential difference between today's market competition and the previous market competition, and every era is the same. It's just that the whole environment, including the economic situation and the automobile market, may show different characteristics in different times. Not to mention the epidemic situation, economic weakness, and some challenges faced by the entire global economy, the "four modernizations" have challenged traditional cars in all dimensions.

How to deal with the business environment, each company faces different situations. Yuan Xiaolin emphasized that any enterprise should have a clear strategy, follow its own plan, seek truth from facts bit by bit, and respond to changes with an open mind.

Specifically, it is the strength of products, brands and systems. Yuan Xiaolin said: "If we keep our feet on the ground, we can do our own thing well in any big environment. As for these problems that accompany the price war, what happened to the product and who did what just means whether it occupied the headlines of the newspaper or caught everyone's eye. There are too many challenges at all levels every day. I feel that the auto market depends largely on the whole economy, how strong and fast it can be in the new era, and whether it can climb quickly. "

He believes that the whole industry should return to the essence. With the scale of China market, it is still the largest automobile market in the world. If Volvo can face these problems in a down-to-earth manner, survival and development will not be a problem. There is too much market space in China, and now there are too many new opportunities. But whether we can grasp the most essential things, not be confused by those noisy things, and not interfere with our progress track because of some actions of others. We should pay attention to the most essential thing in development.

What is the essence of Volvo? In Yuan Xiaolin's view, it is still those three points: product, brand and system. As long as we grasp these three points, others can use this line to implement them. As long as the OEM has established its own products, brands and systems, others can participate. This is Volvo's positioning and the focus of Volvo. He hopes to focus on this and have a better foundation and more room for development in the future.

How will Volvo's product definition be closer to the market in China from the beginning of research and development in the future? Amboyang said that China is a very special market, the largest high-end car market and luxury car market in the world. You want to develop a special car for China. He thinks it is right or wrong.

"Consumers in China are actually very smart, and the use of luxury cars is different from other regions." He thinks it is necessary to keep some characteristics about Volvo, otherwise it is not Volvo. "The China market is very important, and our team is very concerned about the China market. China's team is also helping us and giving us strength. We hope to continue to strengthen China's leadership. "

How does Volvo view the price war? Will you make some adjustments in strategy? An Boyang pointed out that the automobile market has always been very competitive, and Volvo also hopes that this market will become more intense. According to the observation in the past five years, the new forces have some innovative products and models, but not everyone is successful. You can also see some traditional main engine factories, hoping to make some changes for the future and do electrification transformation, but not all of them have succeeded. Some traditional OEMs have succeeded, and some have not.

He said: "Now, Volvo is at a turning point, with increasing pressure and increasing market participation. However, Volvo is confident. Because of its high-end market positioning and advanced products, it will launch better and better models in the future and launch brand-new electric vehicles every year, so we don't need to be nervous and afraid because we have a very clear strategy. We are still profitable, growing and creating a very good customer experience, so I think we will definitely survive. "

Yuan Xiaolin added that this is a complicated issue. First, how much a brand has dropped, from the suggested retail price of the original manufacturer to the present, in fact, some things have not happened. But being an enterprise is a very serious matter. Don't believe some news on the internet at will.

Second, products, channels, brands and the whole operation are the most basic. If there is a short board in any way, this short board must not happen in one day, but it already exists. Either I didn't realize this, or I realized that I hadn't changed, or I wanted to change. If this happens, enterprises can't survive, especially in the whole big economic environment. Without giving enterprises a chance to hitchhike, survival may even be a problem.

He took the switch of China 6A as an example to see whether the enterprise system has the ability to adjust the whole supply chain system or even the whole production plan according to the market sales situation. Sometimes, but the enterprise is unwilling, the system level is unable to cope with this change, and nothing is managed until it is produced. Now that the market is not working, enterprises give themselves a reason. But everyone has no hard day in this market. How can it be a expect the unexpected thing to change the country to 6A? At this time, the system ability of the enterprise is needed to help the brand survive.

Will Volvo's procurement in R&D and China be better than other brands in three to five years? Amboyan is very confident in Volvo's global strategy. At present, Volvo is focusing on the future of full electrification, but full electrification is not achieved overnight. Previously on ... Volvo has launched some hybrid and plug-in hybrid vehicles, and will launch a pure electric vehicle every year in the future. By 2030, Volvo will be transformed into a pure electric luxury car company.

He said: "We are very concerned about the China market. We hope to launch some models in China. We also have many suppliers in China, so we are very confident that we have such a strategy to make Volvo a winner in the future and beat other original equipment manufacturers. "

Yuan Xiaolin answered this question from two aspects: one is from the general direction, which is a global knowledge. Second, Volvo is a company. If an enterprise wants to survive and develop, it must have a foundation for survival and development. This foundation is that profit can be sustained, and other people's money can't be burned, no matter where the money comes from.

Therefore, in the face of such a big market as China, we must seek truth from facts and have a clear direction, but there are different paths and different rhythms in how to go. He believes that in this process, it is a test for local teams.

Does Volvo have any new thoughts on green energy saving and carbon reduction in the whole life cycle? Amboyang said that Volvo's strategy is very clear, and it will become a climate-neutral company by 2040. "We hope to take immediate action to reduce the carbon footprint of vehicles and reduce the carbon footprint by 40% by 2025. First of all, we must become fully electrified, and all batteries are made of recyclable materials, so that the entire supply chain is environmentally friendly. We must deal with the problems of plastics and aluminum and strengthen recycling in this area. "

In addition, Volvo also hopes to become an energy carbon neutral company. For example, by 2030, 50% of plastics and 50% of aluminum can be recycled, which is a very big goal. Volvo has developed a new process to reduce its carbon footprint by 2025. At the same time, they also want to work with supply chains and suppliers, which they can't do on their own.

Yuan Xiaolin revealed that Volvo also had a very important activity in May, namely the Sustainable Development Science and Technology Day, and this year should be the third year. It is a system, which is the result of the concerted efforts of Qi Xin, and all suppliers will join in.

Volvo insists on its own product ideas, is it confident to convince consumers? How to consider the subsequent investment in software development, including in-vehicle interactive experience, bottom control, OS, etc. Especially for the usage scenario of China. Amboyan pointed out that China leads the world in the number of luxury car consumers, and China consumers will certainly be able to accept some new functions brought by Volvo's electrification system. In fact, in Europe and America, Volvo has gone through the same process, but it takes more time. Therefore, he hopes to establish such a structure and make such innovations in China to see if it works.

He said that Volvo's new digital system includes the whole consumer experience cycle, from initial purchase to subsequent service to subsequent maintenance. , these processes can use digital platforms to improve efficiency. Therefore, Volvo has set its innovation center and innovation hub in China, and will continue to give play to China's advantages in this respect in the future.

Yuan Xiaolin emphasized that China and the headquarters are not antagonistic, but part of the global structure. Therefore, China is an inseparable part of the world from the strategic planning stage of products, to the definition of products, and then to the later development and implementation. He believes that the word "transformation" expresses the current characteristics very accurately. What was originally established, now everyone suddenly draws a question mark, is it invalid? There are many new things, and new standards have not been established, but they are still in the process.

Yuan Xiaolin believes that every participant in this process is trying different solutions in his own way, but the core point is the customer. "As a brand, we will always pursue value. Take this as a starting point, define your own products and cater to this era. This is what we are doing. "

Amboyan added: "China is a part of the world, and we have a responsibility to keep innovating in China, especially in Shanghai. For Volvo, China is rich in human resources, which is our talent pool, including many of our designers, engineers and management from China. Compared with new york and Sweden, China's talent pool is very abundant. " So in this respect, China is also a very important market.

How to treat the competition of China brand in Europe? In Amboyang's view, some car companies in China can really make amazing products, including superb digital level and electrification level, which shows that China car brands are on the rise. If China brand cars are shipped to Europe, he thinks two things will happen:

First, from the perspective of ecosystem, including logistics system, China's cars enter different continents and countries. Because there is no brand awareness, it is difficult for China brands to establish a sales network. Some China brands have succeeded, and some China brands have failed. This is not an overnight task, so we can see that the export of China brand will face great challenges.

Second, we should not only have good products, but also have long-term strategies. Building products is very important, as is spending time building brands, infrastructure and sales and service outlets. This process may take five years. So, in five years, let's see who can laugh last. At present, China brand has not become the most important brand in Europe, but there may be opportunities in the future.

What is Volvo's current plan to promote new energy? Yuan Xiaolin replied that there are many interference factors in the distribution of traditional internal combustion engines, plug-in hybrids, extended-range hybrids and pure trams. Everyone is gradually introducing pure electric products, and many companies are stepping up their efforts. What is the market situation? He thinks it deserves close attention.

Every company, whether it is launching its own products or increasing production capacity, has relatively large preparations and needs to plan in advance. Therefore, although it is impossible to answer specifically which technical route should be chosen, what should be its permeability.

But Yuan Xiaolin believes that one of the most fundamental things that everyone can adjust is the balance between supply and demand. For example, the sales volume of a certain brand is average. If the balance between supply and demand is adjusted, for example, if the price moves, it may have an effect and the sales volume will go up soon.

But now, in order to achieve sustainable development, many enterprises sell one dollar as fifty cents, which requires more and more enterprises to truly return to the commercial essence. In the long run, it will be difficult for enterprises to survive for a long time if they cannot achieve greater value that customers can recognize at a lower cost.

The newly established system, some pure electric vehicles on sale, can not be well integrated into it. How to treat the competitive pressure faced by existing products? Yuan Xiaolin said that both the products on sale now and the products to be launched in the future must be Volvo, which can be guaranteed. However, what characteristics each product presents and what technology it adopts must present different characteristics according to its time and different customer groups.

In the past three years, Volvo has encountered various situations, but from the perspective of market share, luxury car ranking, the whole system construction, including the promotion of brand power, Volvo has done a lot of work, which makes Yuan Xiaolin feel gratified and proud. A lot of things really don't happen overnight, but work slowly and carefully, especially the ability of a system.

Whether it's building a car or selling a car, it's definitely unrealistic to increase 100% forever. So it would be better to tell the truth, which is what Swedish enterprises should look like, which is also in line with the characteristics of long-term brand development.

Volvo is about to celebrate its100th anniversary. This is because Yuan Xiaolin, as a monk, has always been full of passion and feels that working in this company is very promising. It is based on honesty and long-term development, and every step is in one place and supported. He said that this is his feeling forever. Especially in the hustle and bustle, when everyone is flustered, you will feel more and more like returning to the most basic state.

It has been nearly half a year since the release of EX90 in June+10/October last year, and now it has appeared in China. How to treat the time lag of listing Volvo pure electric vehicles in China? Amboyang said that Volvo has been doing the right thing and winning customers with better quality and safety. Just like a marathon, we don't start running at the first kilometer. We should have our own rhythm and strategy. "We now have a very good foundation to achieve sustainable success and development. I think this is a very good strategy. Speed is important, but sustainable speed is the key to success. "

BBA's electric cars sell well in Europe and North America, but they are not used to it in China. EX90 enters China. Are you worried that Volvo's electrification transformation will encounter a similar situation? What do you think of this problem? Amboyang emphasized that Volvo is now also a technology-driven brand. "We have developed from an internal combustion engine to complete electrification, from a dealer-based mechanism to an OEM-led centralized mechanism. These are two different ways. "

What do consumers think?

He said that European consumers divide the market into new market and old market, and the new market is all electric. If it is not fully electric, it will be classified as an old market, which is the same as Europe and some European consumers' concerns about sustainability and climate. Now China is also showing such signs.

For the European market, consumers' ideas are relatively simple. Now the car is electric, and the old car is internal combustion engine. In China, it is actually another model. Today's vehicles, if not intelligent and digital, are old cars and brands. Therefore, consumers in the two places have different views.

Amboyan believes that customers in Europe and China will think that Volvo has entered a new era of electrification. "We will have some systems full of motors, intelligence and digitalization, so I am not worried about the future of Volvo. I think consumers will accept us and I am very confident. "

As a traditional car company, are cost and efficiency the two core elements of current competition? If so, do you think our speed is slow or will it be faster? Yuan Xiaolin bluntly said that there is always room for doing better, but the whole process from strategic planning to planning, to implementation, to quality management methods must be a systematic thing. Therefore, there are too many places that can be done better.

But more importantly, based on today's status quo, what possibilities does the market offer now? There is much to be improved in terms of technology selection, partners, talent exploration and training, and further understanding of the market.

The improvement in all aspects is the improvement of system capacity just mentioned. In this regard, he believes that from the perspective of supply chain, technology and solutions, the China market has huge room for development. This is because Volvo can continue to focus on China, and truly investing in these places will definitely pay off.

This article comes from Netcom, the author of Easy Car Number, and the copyright belongs to the author. Please contact the author for any form of reprint. The content only represents the author's point of view and has nothing to do with the car reform.