Siemens AG's CEO Presents At The Joint Press Conference Of Siemens And Volvo Car Corporation - Conference Call Transcript

Siemens AG (SI)

Siemens and Volvo Car Corporation Joint Press Conference Call

August 31, 2011 07:00 ET

Executives

Alexander Machowetz – Media Relations

Professor Siegfried Russwurm – Member, Siemens Board and Chief Executive Officer, Siemens Industry Sector

Stefan Jacoby – President and Chief Executive Officer, Volvo Car Corporation

Presentation

Alexander Machowetz – Media Relations

Good afternoon, ladies and gentlemen. I would like to welcome you very quarterly here in Munich and just the best regards from Munich. Welcome to this press conference which is being broadcast live on the Internet. As you have seen in the press information, this press conference is held jointly together with our future partner, Volvo Car Corporation.

I would like to welcome the speakers, Professor Siegfried Russwurm, Member of the Siemens Board and CEO of Siemens Industry Sector and Stefan Jacoby, President and CEO of Volvo Car Corporation.

Following the presentations, we will have a Q&A session, where in addition to the two CEOs, the experts from Siemens and Volvo Car Corporation who are present here will also be included. I would like to ask all of you to please switch off your cell phones during the press conference and for the photographers, please do not use a flash during the press conference. We will have later on have the possibility for pictures. And I’d now like to give the floor to Professor Dr. Russwurm.

Professor Siegfried Russwurm – Member, Siemens Board and Chief Executive Officer, Siemens Industry Sector

Thank you very much, Mr. Machowetz. Ladies and gentlemen, Mr. Jacoby, our dear partner from Volvo Car Corporation, representatives of the press in Munich and around the world, I’d like to welcome you here at Siemens forum for this joint press conference of Siemens and Volvo Car Corporation.

The fact that Siemens is cooperating with renowned companies is something that you probably expect, because we at Siemens are not car manufacturers and we do not want to become one as opposed to some of the guests that are out there, but the fact that we are announcing the partnership with Volvo is something that might have surprised some of you.

The signature on our agreement is still wet although in the field of production, automation, we have been cooperating with Volvo very closely for a number of years already. We are familiar with them. We know Volvo Cars from a lot of projects as a reliable and first of all most a fast and pragmatic company and that’s why I am particularly be happy that the CEO of our future partner, Stefan Jacoby, has followed this invitation to participate in a press conference prior to the International Automobile Association.

Mr. Jacoby is now going to explain a little bit more about the car side of the Electric Mobility side. Stage is all yours.

Stefan Jacoby – President and Chief Executive Officer, Volvo Car Corporation

Thank you very much, Siemens. Thank you very much, Professor Russwurm for this nice and kind introduction.

Ladies and gentlemen when talking about the future of mobility of vehicles with electric drive, nowadays you can easily get the impression that this would be something entirely new, but this is not really the case. Looking at the books you can see that we already had electric vehicles more than one century ago. As early as 1897 there was an entire fleet of electric vehicles, electric taxi cabs in New York. And in 1902, the Woods motor company presented its feet on Chicago, an electric vehicle with a range of 30 kilometers and a maximum speed of 20 kilometers per hour for a very competitive price of $2000.

Another 14 years later, Woods also launched a hybrid model with a combustion engine and electric motor. And indeed that was a very promising beginning, but then there were two things that turned the entire situation around, on the one hand some enthusiastic people in Texas wearing cowboy hats found oil and prompted with lot of state subsidies from the Texas Soil.

And secondly, Henry Ford started the mass production of cost efficient automobiles with a combustion engine in Detroit. You might remember the words of a old wise Turkey Indian once said, the success of a rain dance depends primarily on timing. And looking back we can see today that the right timing was missing for the electric vehicle at that time. A lot of things would have gone entirely differently, the development would have been a different one.

Ladies and gentlemen, I am very happy to be here today and I am also very happy that I have brought a very competent team to Munich. On the one hand, the Head of our development department, Dr. Peter Mertens, the Executive Vice President of Volvo Cars; Lennart Stegland, Vice President for Special Vehicles, who is the Head of Development for the project C30 electric.

Ladies and gentlemen, today our society of mobility is on the verge of a new path towards sustainable development, the dependency from crude oil will have to be stopped and climate change will have to be countered with good products at the appropriate measures. We in the automotive industry are part of the problem and we will make our contribution when it comes to solving this problem. It is now the time to find long-term strategies and alternatives for this problem and launching them and making them sustainable.

Looking at the history of motor vehicle development, electric vehicle is now facing a come back and it will start a new chapter in the history of automobiles. We will also have to recognize and remain realistic that the transition to a CO2 free mobility will take its’ time, probably more time than a lot of politicians believe in lot of countries, because mobility needs to be affordable for our customers and our customers demand the respective confident functionality in automobile.

As Professor Russwurm already stated in the beginning, we are not among the biggest automotive companies, but nonetheless this prices with the unique opportunity of being different at Volvo. We are a fast moving company and one thing is very important for all of the developments that we are launching at Volvo mainly that we are designing around people. Particularly when we are designing cars, we like people and this has been the case since 1927 when the company was founded and our first car Volvo ÖV 4, this has already being parcel of all our strategy. Volvo represents robustness and safety for people and for the environment. We analyze the needs of people. We are listening to the customers to the people and we then build an automobile for these very people.

We clearly recognized that more and more customers around the world not just in Europe, not just in Germany, one to have a low emission vehicle with less CO2 emissions. But looking forward ecologically sustainable mobility does not mean that our customers are willing to make a big trader when it comes to enjoying the ride and enjoying the fact of owning a luxury vehicle, why should they. It is our objective to offer mobility to our customers and offer them vehicles that are the key to really enjoying driving a car. And we do not lose the fact out of site that we should be doing this in a responsible way.

We have set ourselves the target that until the change of the decade 20-20 that no people should die in a Volvo in the accident – in an automotive accident. But we’ve also said ourselves to target that in 10 years we want to try towards 00 emissions and we want to create a platform for a CO2 free mobility without any emissions in a comprehensive approach. It’s about making today’s drives more efficient and working towards alternative concepts. We already have seven diesel engines in our range with CO2 emissions that are below 120 grams per kilometers, three of them are below 100 grams per kilometer.

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