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Forbes
21-07-2025
- Automotive
- Forbes
The Combustion Engine Strikes Back: Volvo Reimagines Hydrogen
Volvo heavy duty trucks (from left to right): electric, fuel cell and hydrogen combustion. We go for better electric solutions, we go for fuel cell electric solutions, and we also continue to invest in combustion engines. As a data point, it's rather interesting to say that last year, 2024, was a record year for us in investing in combustion engines. Some people believe that this is already technology of yesterday, sunset technology, but we believe that combustion engines running on renewable fuels, including hydrogen, will be part of the equation for our industry going forward. Hydrogen and Electric Spirit at Volvo The Volvo Group recognizes that decarbonizing heavy transport will require a diverse mix of technologies. Committed to achieving fossil-free operations by 2040, the company is pursuing a multi-path approach to decarbonization. This strategy centers on three complementary propulsion technologies: battery-electric vehicles, fuel cell electric vehicles—particularly suited for long-haul transport—and hydrogen-powered internal combustion engines tailored for high-load, demanding applications. On July 2, 2025, Volvo Group President and CEO Martin Lundstedt, along with 30 senior executives from leading energy, automotive, and hydrogen companies, signed a joint letter addressed to EU and Member State leaders. Together, they issued a clear and urgent message: hydrogen mobility must be strategically placed at the center of Europe's clean transport and industrial policies. The letter emphasizes that hydrogen is essential to achieving the continent's climate goals and securing its economic resilience. The CEOs warn that without a more coordinated and pragmatic policy framework—particularly to support the rollout of infrastructure—hydrogen mobility in Europe risks stagnation. A similar call to action is urgently needed in the United States. The U.S. heavy-duty hydrogen market has recently lost two of its early movers, Nikola Trucks and Hyzon Motors—companies that, in many ways, entered the market ahead of its readiness. With sales and investor confidence lagging, their exits highlight the fragile state of the industry and pose a threat to the slow development of the country's seven hydrogen hubs. For example, California's ARCHES H2 hub aims to deploy 5,000 hydrogen-powered heavy-duty trucks to serve the Ports of Long Beach and Los Angeles. However, as supplier options dwindle, market development becomes more difficult. While the root challenges may differ between the EU and the U.S., both regions share a critical opportunity: to leverage abundant renewable energy resources and accelerate the transition to a hydrogen-based economy. Volvo Group maintains a comprehensive and locally focused truck manufacturing operation in the United States, producing all Volvo trucks for the U.S. market domestically, about 30,000 per year. The company's primary facility is the New River Valley Plant in Virginia, where trucks are built from the ground up—including cab welding, painting, trimming, and full assembly. This plant also produces autonomy-enabled trucks, equipped with redundant safety systems essential for future autonomous operations. Engines and transmissions are manufactured at Volvo's Hagerstown, Maryland facility and then shipped to Virginia for final integration. This tightly integrated U.S. manufacturing footprint allows Volvo to efficiently serve the North American market, meet regional regulatory requirements, and swiftly implement new technologies such as autonomous driving systems. Electric Trucks on the U.S. Market Volvo Trucks began offering a comprehensive portfolio of electric trucks in 2019. As of April 2025, the company has delivered 5,000 battery-electric trucks to customers across 50 countries. With eight electric truck models currently available, the U.S. market is served by the Volvo VNR Electric with approximately 700 units deployed domestically. The electric model range is designed to meet the needs of urban and regional distribution, as well as the construction and refuse sectors. Volvo's top five markets for electric truck deployments are Germany, the Netherlands, the United States, Norway, and Sweden. In parallel, the company has been actively developing fuel cell trucks through its joint venture with Daimler Trucks, with cellcentric— their joint venture fuel cell company—supplying power units. The latest generation fuel cell system delivers up to 375 kW (>500 Hp) of power. Volvo's fuel cell developments were previously discussed in greater detail in Volvo's Hydrogen Trucks: A 3-Year Journey. Currently, there are five fuel cell trucks in testing, the number is planned to double by 2026, then by 2027 Volvo plans to introduce around 50 trucks in a small-scale customer fleet on European roads. Volvo VNR electric truck offered on the U.S. market. Hydrogen Fueled Engines In recent years, significant competition has emerged among OEMs and engine manufacturers to develop the most effective hydrogen combustion engines as a cost-efficient alternative to more expensive fuel cell powertrains. Being a global industrial giant, Volvo has entered this race not with one but with two innovative solutions based on a diesel engine platform, rather than the more common spark-ignition systems adopted by other manufacturers. In both cases, Volvo technology is based on hydrogen as the main fuel where a small amount of biodiesel ignites hydrogen—an unconventional and bold solution. Volvo's hydrogen combustion engines operate similarly to traditional diesel engines but are specially adapted to handle hydrogen as the main fuel, displacing diesel and reducing particulate and CO₂ emissions from combustion. This technology has been adopted in Volvo engines in cooperation with a marine and stationary technology company that has developed and refined hydrogen–diesel dual-fuel technology. The author came across this company in 2019 while learning about the pioneering hydrogen tugboat plans during a visit to the Port of Antwerp. The approach is to have ultimate flexibility in their engines where amount of added hydrogen can vary up to 85% power coming from it. But their engines can still run 100% on diesel when hydrogen is not available. The Volvo strategy is that the use of hydrogen is maximized, and diesel is just the flame initiating agent—a key aspiration toward sustainability and transition to clean transport. Volvo Penta diesel engine conversion with the hydrogen injection system at the air intake by ... More In the traditional diesel engine, turbocharged air is brought into the cylinder and compressed by a piston moving to the top of the cylinder. At this point, diesel—all of the fuel—is introduced as an atomized spray from the injector directly into the hot air, initiating combustion. This is followed by a power stroke, deriving net power from the engine. In the Volvo-adopted technology, hydrogen is supplied from 350-bar storage tanks and reduced to a lower pressure to enable port injection into the engine's air supply at the moment of air induction and in the appropriate quantity. Hydrogen displaces diesel as fuel. The air–hydrogen mixture is compressed and then ignited by a small injection of diesel that burns completely and produces the required power. This technique allows for controlled ignition and efficient power delivery while minimizing emissions, with no power reduction. Hydrogen can replace up to 85% of diesel. The system is designed to work on top of the engine's existing architecture and electronics, simplifying the overall conversion. When CO₂-neutral biodiesel is used, the engine emits limited CO₂, with water vapor as the main byproduct. While some NOₓ emissions are still present due to high combustion temperatures, they remain within the proposed Euro 7 limits. This approach provides a practical path to decarbonization, particularly for long-haul applications where electric charging or hydrogen fuel cells may not be feasible due to infrastructure or operational constraints. The first deployments of this technology are already underway. Volvo is focusing on developing FH Aero heavy-duty trucks with a 13L engine. In late 2024, the Port of Gothenburg celebrated the opening of Hydri's hydrogen refueling station, enabling Volvo Penta's field testing of a dual-fuel hydrogen–diesel terminal tractor at the RoRo (roll-on/roll-off vehicles) terminal. hydrogen genset features a Volvo Penta Stage V D8 340 hp industrial engine, applying hydrogen dual-fuel technology that could be used in decarbonizing port operations and off-grid power generation. In 2023, the partnership launched Hydrobingo, an 80-passenger ferry operating in Japan, powered by Volvo's dual-fuel engines while achieving CO₂ emissions reductions of up to 54%. Volvo hydrogen combustion engine terminal tractor in testing at the Port of Gethenburg, RoRo ... More Terminal. The second approach, looking into the future, is based on injection technology being further refined by Cespira, a joint venture established in 2024 between Volvo Group and Westport Fuel Systems to accelerate the development and commercialization of high-pressure direct injection (HPDI™) fuel systems for hydrogen and natural gas combustion engines. Westport contributed intellectual property, assets, and business opportunities to the venture, while Volvo acquired a 45% stake for an initial $28 million, with an additional $45 million tied to performance-based milestones. Cespira focuses on adapting internal combustion engine technology to run on cleaner fuels while meeting increasingly stringent emission standards like Euro 7 and U.S. EPA regulations. HPDI-enabled engines offer a viable alternative to fuel cells by allowing continued use of familiar diesel-based engine architecture—making the transition more cost-effective for OEMs and fleet operators. In this setup, hydrogen is injected into the combustion chamber as air is being compressed, along with a small quantity of pilot fuel such as biodiesel, which is used to initiate ignition and the consequent combustion of hydrogen with air. Volvo's fuel injection system uses a dual concentric needle injector—a patented technology that precisely delivers both pilot fuel and hydrogen into the cylinder. It first injects a small amount of pilot fuel to start combustion, followed by high-pressure hydrogen gas. By advancing both dual-fuel and high-pressure direct injection hydrogen technologies—through in-house innovation and strategic partnerships like and Cespira—Volvo is creating practical, scalable alternatives to fossil fuel transport. Together with battery-electric vehicles and hydrogen-powered fuel cell and diesel engines, Volvo's three-pronged strategy is driving targeted competition toward meeting global sustainability standards.
CNBC
18-07-2025
- Business
- CNBC
The impact of tariffs is starting to show up in Europe's company earnings
Earnings season has kicked off in Europe , and the impact of U.S. tariffs are beginning to show up in the hard numbers. That has now made analyst consensus — which just last week predicted a mild 0.2% dip in profits for companies on the Stoxx Europe 600 index — forecast a 0.7% year-over-year decline, according to LSEG data. The gloomier forecast comes as a growing number of European industrial and consumer giants report that tariffs are hitting sales, raising costs, and cooling the investment environment. Manufacturing The auto industry is on the front lines of the trade conflict. Jaguar Land Rover said its retail sales plunged 15.1% in the quarter ending June 30. The British carmaker, owned by India's Tata Motors , attributed the slump to a "pause in shipments to the US during April 2025 following the introduction of US import tariffs." Similarly, Sweden's Volvo Group is scaling back its North American operations in response to weak demand. "Demand in North America has been weak in the wake of uncertainty surrounding both tariffs and the [Environmental Protection Agency] 2027 emissions regulations," said Martin Lundstedt, chief executive of the truckmaker, confirming the company is "reducing production capacity there to adapt." The uncertainty from the trade war has also led to customers of major companies to delay purchases. Norway's Tomra Systems , which makes machines used in recycling waste, said its order intake has been affected by "macroeconomic and tariff uncertainty which is postponing customers' investment decisions." This sentiment was echoed by Swiss industrial giant ABB , which noted that customers for its robotics division are in a "wait-and-see mode on the back of continued tariff-related uncertainties," causing some projects to be delayed. However, across the group, ABB had record second-quarter orders. Consumer goods For other companies, tariffs are translating directly into higher costs. Consumer-goods maker Essity , which produces incontinence pads under the brand TENA, reported that while it managed to raise prices, it was to offset "increased costs of goods sold, including trade tariffs." Barry Callebaut , the world's largest chocolate maker, cited "particular tariff-related uncertainty in North America" as a factor in its 9.5% third-quarter volume drop, forcing it to revise its full-year guidance downwards. Even Europe's financial sector does not appear to be immune. Nordea Bank said its market-making business was "impacted by volatility due to tariff uncertainty," while Investor AB noted that the profit margins of its medical-device subsidiary Molnlycke were squeezed by a "smaller negative impact from tariffs." Tariffs 'fully offset' Not all companies are equally affected, however. Industrial group Sandvik reported a "swift response to tariffs, fully offset in the quarter." Swiss pharmaceutical giant Novartis also said tariff are not expected to hit its finances this year. "We have adequate inventory in the U.S. for this year and feel fully confident that for this year any tariffs would not impact our guidance," Vasant Narasimhan, chief executive of Novartis, told CNBC's Karen Gilchrist. "We're moving as fast as possible to ensure over the next few years we're able to produce all our medicines for the U.S. in the U.S. and fully mitigate tariffs." — CNBC's Karen Gilchrist contributed reporting.
Reuters
17-07-2025
- Automotive
- Reuters
Truckmaker Volvo counts on improving Europe to offset North America slump
July 17 (Reuters) - Swedish truckmaker Volvo ( opens new tab reported higher than expected quarterly earnings on Thursday, as signs of recovery in Europe helped it offset sluggish demand in North America. Truck orders in North America have fallen more than 40% in recent months compared to last year, adding to the pressures on pricing and sentiment across the sector. The second quarter was characterized by a general stabilization of the European market, contrasted by more uncertainty and a wait-and-see mode among customers in North America, Volvo said. "The results are better than feared, but the heat does appear to be coming out of Europe," analysts from Jefferies said in a research note. The downturn in North America is likely to last for quarters, CEO Martin Lundstedt told Reuters, although there might be a positive a pre-buy effect next year if new U.S. emissions rules become clearer. Those rules could make trucks more expensive and harder to maintain from 2027. Analysts have said that Volvo, which makes vehicles under brands such as Mack Trucks and Renault as well as its own name, looks better positioned than its peers to weather U.S. tariffs as it builds a larger share of its trucks locally, reducing its exposure to import-related costs. Volvo's truck order intake was similar to last year's at 47,761 vehicles, while deliveries fell 10.5% to 52,764 vehicles. Analysts from said they expected deliveries to improve in Europe in the second half of 2025. Lundstedt said he was "rather confident" that the recovery in Europe would continue, as Volvo had a full order coverage through the third quarter and bookings were also coming in for the fourth. Future tailwinds from infrastructure and defence investments should also help the business in Europe, he added. Volvo's operating profit, excluding currency exchange effects and one-off charges tied to lower battery volume commitments and asset impairments in its electric vehicle operations, fell to 13.5 billion Swedish crowns ($1.39 billion) in the second quarter. Analysts polled by LSEG had expected 13.3 billion on average. The Volvo shares, which jumped more than 3% in early trading, were broadly flat by 0945 GMT. ($1 = 9.7384 Swedish crowns)
The Star
17-06-2025
- Automotive
- The Star
Volvo Group, Daimler look to technology joint venture in bid to save costs
FILE PHOTO: President and CEO of AB Volvo Martin Lundstedt stands in front of a Volvo truck, on the occasion of the publication of an interim report, in Gothenburg, Sweden, April 20, 2023. TT News Agency/Adam Ihse/File Photo GOTHENBURG (Reuters) -European truckmaking rivals AB Volvo and Daimler Truck hope to cut costs and reduce reliance on suppliers by jointly developing a software-defined vehicle program, they said on Tuesday. Fleets and truck manufacturers, like automakers, have been racing to produce technology-packed vehicles while also grappling with the need to reduce costs. Truckmakers are currently heavily reliant on suppliers because their software is closely tied to hardware, but Daimler and Volvo's new business - called Coretura - aims to develop a software-defined vehicle platform and reduce that dependence. The companies are looking to create an "industry standard", Daimler Trucks CEO Karin Radstrom told reporters. "We're looking at how we can move from our current reality where we are very much dependent on our suppliers - which drives both cost and sometimes timelines - and instead looking at what's the next generation of software that we need to bring to the vehicle", Radstrom said. The Gothenburg-based venture will employ 50 employees to start, with the hope of first deliveries of its connectivity platform in 2027 and further deliveries towards the end of the decade. "Everything in the vehicle industry is very much oriented around software and controlled by software", said Johan Lunden, a Volvo veteran and the newly appointed CEO of Coretura. Software will play an increasingly vital role in achieving sustainability, productivity, and safety targets in the future, he added. While rivals, Volvo Group and Daimler have collaborated on various businesses in recent years, such as within charging and hydrogen fuel cell development. (Reporting by Marie Mannes in Gothenburg and Jesus Calero in Gdansk; Editing by Matt Scuffham)
Yahoo
18-05-2025
- Business
- Yahoo
Andrea Fuder, Chief Purchasing Officer at Volvo Group has tragically passed away
GOTHENBURG, Sweden, May 18, 2025 /PRNewswire/ -- Andrea Fuder, Chief Purchasing Officer and a member of the Volvo Group Executive Board since 2017, has tragically passed away following a short illness. Andrea led the global purchasing team and its ecosystem of supply partners through one of the most significant transformations the industry has ever seen, including navigating the pandemic, supply shortages, and an increasing volatile geopolitical landscape. She was instrumental in driving the Volvo Group transition towards more sustainable transport solutions. "My thoughts are with Andrea's loved ones during this difficult time of loss. There is no doubt that the leaves behind a remarkable legacy, having played a vital role in the Volvo Group success over the past eight years. She was a true driving force in harnessing purchasing power as a catalyst for positive change. Thanks to her dedication and commitment, our supply network is stronger than ever. Andrea will be deeply missed," says Martin Lundstedt, President and CEO, Volvo Group. Jens Holtinger, Executive Vice President Group Trucks Operations will serve as acting Chief Purchasing Officer. Journalists wanting further information, please contact:Claes Eliasson, Head of Media Relations+46 76 553 7229press@ For more information, please visit For frequent updates, follow us on LinkedIn The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm. This information was brought to you by Cision The following files are available for download: Press Release - Andrea Fuder, Chief Purchasing Officer at Volvo Group has tragically passed away AndreaFuder 1860x1050 View original content: SOURCE AB Volvo Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
