Automotive Sweden

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Automotive Sweden
The route to innovative automotive solutions
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The Swedish automotive industry

• Employs 185,000 people 1/10th of the EU total
• Accounts for 13 percent of Swedish exports
  (2000).
• Four manufacturers
• Volvo Cars (owned by Ford Motor Group)
• Saab Automobile (owned by General Motors)
• Scania (Volkswagen largest owner)
• Volvo Trucks (Renault largest owner)
• Home to leading automotive suppliers and partners
  (Autoliv, Atlas Copco, Haldex, Sandvik, SKF)

Source BIL Sweden
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A significant global player

• Volvo Global Trucks 160,000 trucks
• Volvo Cars 400,000 cars
• Scania 45,000 trucks
• Saab 120,000 cars
• Sweden holds 20 percent of world heavy truck
  production

Source BIL Sweden
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Why Sweden for automotive

• Locating in Sweden allows you to
• Develop innovative automotive solutions in a
  progressive buyer environment.
• Create and strengthen supplier relations with two
  premium automobile manufacturers and two of the
  worlds largest manufacturers of commercial
  vehicles.
• Be near global RD centers for the worlds
  largest vehicle brand operators, Ford and GM.
• Capitalize on Swedens recognition for quality
  and engineering know-how.
• Benefit from competitive cost of operations.
• Join competence clusters in telematics,
  intelligent vehicle safety, and design
  engineering.

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A leading position in growth segments
Telematics Ford has global RD center for
telematics in Göteborg. Volvo Trucks Dynafleet
in 2nd generation. Scania offers Fleet Analysis
System
Safety Saab and Volvo have outstanding
recognition for safety. Worlds most advanced
crash test center established in
Göteborg. Scania and Volvo Trucks have pioneered
impact- and crash tests of cabs.
Design engineering GM has granted platform
development for all premium segment models to
Saab. Scania modular production system Volvo
awarded Truck of the Year 5 times
A presence of strong companies in complementary
industries like microelectronics, mobile
communications, and high-tech engineering enables
Sweden to stay in the lead.
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Innovation milestones - cars

• Three-point seat belt (patented by Volvo in 1958)
  
• Seatbelts as standard feature (Saab, 1962)
• Establishment of auto accident investigation team
  (Volvo, 1970)
• Side impact protection (Saab, 1972)
• Turbo engine for every-day use (Saab, 1976)
• World's first side impact air bags
  (Volvo/Autoliv, 1995)
• Inflatable curtain for side impact head
  protection (Volvo/Autoliv, 1998)
• AWD traction system (Haldex, 1998)
• First active head restraint (Saab, 1998)
• First anti-whiplash seat (Volvo/Autoliv, 1998)
• First whiplash protection system for rear-seat
  occupants (Autoliv, 1999)

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Innovation milestones - trucks

• Turbocharging on 8-cylinder railcar engine
  (Scania, 1951)
• The world's first turbocharged diesel (Volvo,
  1954)
• The Globetrotter most comfortable truck in the
  world, (Volvo, 1979)
• Air-to-air charge-cooling introduced on trucks
  and bus (Scania, 1982)
• First truck engine with turbo compounding in
  series production (Scania, 1991)
• Airbags for trucks (Volvo, 1994)
• ECT, Environmental Concept Truck, and ECB,
  Environmental Concept Bus (Volvo, 1995)
• FUPS, Front Underrun Protection System, (Volvo,
  1996)
• Euro 3 versions of all straight six-cylinder
  engines (Scania, 1999)

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Sweden a global center for automotive RD

• Volvo
• Global responsibility for development of safety
  within the Fords Premium Automotive Group (PAG)
  Aston-Martin, Jaguar, Lincoln-Mercury and Volvo.
• Global center for telematics for PAG based in
  Göteborg.
• Volvo Car Safety Center opened in 2000. 
• Saab
• Global platform development responsibility for
  all GM and Fiat premium cars Alfa Romeo,
  Cadillac, Fiat and Opel.
• Responsible for development of turbo engines
  within GM.
• A large center for design, electronics and
  telematics established in Göteborg.
• Scania and Volvo Trucks
• Both have majority of RD located in Sweden

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Sweden for Telematics

• Home to world-leading companies in relevant
  industry sectors
• Saab, Scania, Volvo Cars, Volvo Trucks
  (automotive) Ericsson (mobile communications
  systems supplier) Telia (communications network
  operator) numerous IT systems suppliers.
• Highly advanced users of IT and
  telecommunication.
• Proven track record in defining, developing and
  producing complex systems.
• Ford has placed global telematics RD and
  business development center in Göteborg.
• Development centers for EDS and HP Labs placed in
  Telematics Valley cluster with more than 60
  companies.

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Sweden for Safety

• Volvo and Saab have pioneered safety advancements
  in cars Scania and Volvo Trucks in trucks.
• Autoliv, worldwide leader in automotive safety,
  is headquartered in Sweden.
• Vision Zero program supports industry
  development of new advanced safety features and
  systems.
• Launch of 10-year program to build Intelligent
  Vehicle Safety Systems (IVSS) cluster
• Volvo Car Safety Center emphasizes Swedens
  position as a key player in automotive safety
  world first computerized crash test dummy for
  pregnant women presented in 2002.

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Sweden for Design Engineering

• Quality and engineering know-how
• Swedish engineering competence an assurance for
  product durability, roadholding qualities and
  more.
• Industrial design competence and recognition
• Volvo FH12 Truck of the Year 2000 and 1994 (Volvo
  first brand to win five times). Scania 4-series
  Truck of the Year 1996
• Saab 9X voted top concept car 2002 by Europes
  leading automotive designers
• Volvos SCC voted top concept car 2002 in the
  U.S.
• Volvo XC90 wins 2002 World Traffic Safety Award
• Production technology know-how
• Scanias modular production system key factor
  behind outstanding profitability track record
• Innovativeness
• Swedish vehicle manufacturers and suppliers like
  SKF, Autoliv, Haldex, and Opcon are examples of
  Swedens innovativeness.

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Sweden for Winter Testing

• Northern cities of Arjeplog, Arvidsjaur and
  Älvsbyn have become the worlds leading winter
  test center.
• Over 25 automotive manufacturers and components
  suppliers perform winter tests in the area
• Bosch, Continental Teves, Delphi, Knorr Bremse,
  Mando, TRW Automotive, Unicia Jecs
• Alfa Romeo, Audi, BMW, Citroen, Ferrari, Fiat,
  Ford, Lancia, Jaguar, Man, Mercedes Benz, Opel,
  Peugeot, Porsche, Renault, Scania, Seat, Skoda,
  Smart, Volkswagen
• Saab and Volvo winter testing in Jokkmokk,
  Älvsbyn and Kiruna.
• Some 15 service providers. Investments set to
  double in 3-year period 2001-2003.

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Industry and university collaboration

• Swedish industry best in Europe almost 50
  percent of companies with 50 employees has
  co-operation arrangements with universities or
  research institutions
• The Program for Automotive Technology Research, a
  national body to coordinate and sponsor industry
  and university research efforts. Examples of
  products, tools, and concepts sprung from
  collaborative RD efforts
• BioRID, biofidelic rear impact dummy. Developed
  by Chalmers in cooperation with Autoliv, Saab and
  Volvo
• Chalmers University of Technology in Göteborg the
  first European university to sign an agreement
  with General Motors.

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Competitive business costs Score
Source EIU 2001
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Competitive labor costs technical
engineer2001, USD (including social charges)
Source Mercer Sweden AB, 2002
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Low corporate income taxPercent
Source KPMG, January 2002
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What industry insiders say

• Swedens strong automotive and telecoms
  industries have been a driving force in our
  selection of Göteborg as our base for the
  Scandinavian markets.
•  Christoph Neut, Vice President, TechTeam Europe
• Given the Göteborg areas expertise in both
  telecoms and car manufacturing, its the perfect
  location for our new RD center.
• John A Meyer, Jr., President, Information
  Solutions, Europe, Middle East
  Africa, EDS

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ISA your business facilitator

• Dedicated automotive team to assist you in
  investment matters
• For further information, please contact
• Sören Mellberg, Head of Automotive Project
• Direct phone [phone]
• Fax [phone]
• Mobile phone [phone]
• soren.mellberg_at_brg.goteborg.se
•  
• Invest in Sweden Agency, Norra Hamngatan 14,
  SE-411 14 Göteborg, Sweden