Exclusive Interview with Volvo CEO Stefan Lorentzson

By Mike Smith, CEO, Mike Smith Public Affairs, Washington, DC

MS – Stefan, I know you are moving back to Gothenburg June 1st for a senior management role. With 10,000 employees in the U.S., Volvo Group North America has a large presence here. We want to look at some of the greatest contributions you have made and where Volvo Group NA is heading.

SL -  I’ve been living outside of Sweden for about 8 years, but it’s about time to go back to Sweden.  It’s to the point when I could live here for rest of life, or go back and re-establish in Sweden.  Maybe I will come back to New York again.

MS - What are best contributions you have made in the States?

SL - Within the U.S., Volvo Group North America has legacy, visibility, and different brands (Volvo Trucks, Heavy Construction Equipment and Mack, etc.). So, we have a strong operation in U.S. with 10,000 workers, and there is strong market share in the U.S.; it’s quite big as a footprint.

MS – You have made an impact here in the Green movement. From what I learned at COP15, the Swedes and Danes lead the way. Can Volvo Group teach the U.S. movement anything?

SL – We have learned from each other! An environmental consciousness is adapted easily in Sweden; it’s not a huge country.  We are well adapted to wilderness and the environment. You can see this with other companies such as Ikea.

MS – We saw some of your Green technology on display at RETECH. There was an amazing lithium battery powered Mack truck on display, comments?

SL - It’s easy to build one hybrid truck or one hybrid bus. While it costs a fortune, it’s easy to build.  We want to make affordable hybrid technology.  Right now we are working with the Air Force, and have a NY Department of Sanitation garbage truck in NYC. These trucks offer fuel efficiency that is 30-50% better depending on the application.  This is great for the environment and customers. (NOTE – Sanitation truck began rolling last week)

MS - One of the cool things we learned at RETECH was that you could power your cell phone off of truck, this is true? There is power regeneration that is thrown off?

SL - Yes it is true, there is an advanced power system with technology to utilize both engines.  This means you can have smaller diesel engine.  The lithium battery adds more power and cuts down on fuel used. So there is additional power generated with usage.

MS – Let’s talk about your Carbon Neutral Plants. You have two operational now?

SL – The first one is in Belgium. Second one is in Sweden is almost online.  The goal is to be CO2 neutral.  The way you do that is simple.  Utilize wind power and renewable resources.

MS – Lot of news this week about Volvo Automotive and the Ford sale to China’s Geely. Ford just sold the car side to China, for $1.8 billion, which has no relationship to Volvo Group and trucks. Does this pose a problem with brand recognition?

SL - We have had the same brand for many years, same values, no real problems with auto vs. truck.  People just need to understand that it is only “Volvo cars” that is sold to China, not the Volvo group. Volvo is still a Swedish group with strong North American operations here.

MS - Is Bio-Mass the future?

SL - It is the Future.  What alternative fuel source you use depends on where you are in the world though.  In Sweden, we use DME from forestry industry; in Brazil, they use sugar cane.  The trend will continue.

MS – Your ChemRec operation also is using Black Liquor biomass; what is it?

SL - It is a waste product from resin in the foresting industry.  Normally thrown away, now we can utilize it as fuel. Three years ago, Volvo Group had 7 different trucks with 7 different fuels. President Bush and many others were there.  This shows that we have the technology, the technology is there.  It’s up to the companies to deliver the fuels.

MS - You are currently in Washington working with government affairs, the Pentagon, Air Force, and Army, are you looking to expand more?

SL - I think we should.  American industry should use trucks that are built here.  In Sweden we use the trucks that are built there, Americans should do the same.  Mack is the best truck we have now.  Who knows, we are willing to expand, so the sky’s the limit.

Mike Smith is a Washington-area public affairs exec who blogs regularly for The Energy Collective. mike@mikesmithpa.com