In this regard and with respect for all colleagues, before redundancy notice was issued, a number of other measures were taken. We cooperated closely with politicians, trade unions and authorities to mitigate the consequences of the economic downturn. We have tried to find solutions to avoid layoffs and to launch stimulation packages for the automotive industry, based on national conditions. These endeavours also resulted in an agreement with unions in Sweden for work-time and salary reductions in some plants and offices. In France, Belgium and Germany, we have used various forms of short-time work weeks financed by governments, employees and the company.
Managing the downturn required effective leadership and communication. During this period all managers in the Group have had a very important task – to inform colleagues and listen to their questions, then respond. Information must be shared the moment it is available and managers have received training and assistance to enable them to handle the situation in the best possible way.
I have also received many comments from colleagues all over the world, both criticisms and suggestions for improvements. I appreciate this open dialogue and the willingness to understand the relationship between the market impact on the Group and individual work situations. I hope that in the future we can look back and say that we did everything we could to support all colleagues who were affected by actions we had to take.
Even in difficult times it is essential to maintain a long-term view of the business operation and of products and services that will be profitable in the future. I am proud to say we have done this. In 2009 we continued to invest in research and development to allow us to launch competitive products in the years ahead. By focusing on developing increasingly more energy-efficient engines and complete vehicles that can operate on renewable fuels and by introducing hybridisation we are taking a lead in the market. More than 98 % of energy use in the transportation sector is from fossil fuels. This will not last forever. Rising fuel prices have a large impact on our customers’ economy and the necessity of combating climate change becomes increasingly urgent. So developing fuel-efficient vehicles is of the highest priority for us. Our more energy-efficient engines and alternative drivelines have a positive impact on our customers’ financial situation — and less impact on the environment.
Our involvement goes beyond our products. In order to create sustainable mobility it is necessary to cooperate with different actors in society. That is why we are participating in a number of projects for the advancement of future transports. To promote sustainable transportation solutions, several stakeholders must partner and work towards a common goal. We can offer the necessary technology, but we cannot create sustainability alone. We need to find more efficient ways to pool resources from industry, governments and academia to address the major environmental and societal challenges we are facing.
An example of an important societal issue is traffic safety. According to a modest estimate by the World Health Organization, more than 1.2 million people are killed and 50 million are injured every year in traffic. We have a long tradition of working with traffic and product safety. The protection of human life in the case of accidents has been a top priority for us for more than 80 years. Let me take this opportunity to launch our safety vision: “Zero accidents with Volvo Group products”. This vision shows our increased ambition for the future and the responsibility we take as one of the world’s largest manufacturers of commercial vehicles.
This report gives you a view of our strategies and commitment to sustainable development. It also shows our commitment to the principles of the United Nation’s Global Compact initiative and in our Code of Conduct. Our values and commitment to sustainability are, and will continue to be, reflected, promoted and implemented in Group strategy, decisions and actions.
I have an optimistic view of the Group’s future potential. In spite of the financial crises, the fact that heavy-duty transports and building infrastructure are the foundation of modern society remains unchanged. The Group’s products and services contribute to the development of society, and I cannot see anything in the financial crises of the past year that changes my positive view of the Group’s long-term development possibilities. Sustainability efforts are an important component of the Volvo Group’s competitiveness and our ability to create value for customers, shareholders and future generations.