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All-new Volvo VNL Class 8 tractor loads up on car-like features

A few months ago, we wrote about the public-private partnership between the U.S. Department of Energy and Class 8 truck makers to create concepts called SuperTrucks. The four manufacturers involved designed lighter, more aerodynamic, and more fuel-frugal trucks to hit escalating freight efficiency targets in each phase of the program. Daimler, Navistar, Peterbilt, and Volvo spent the past 18 months showing the results of the SuperTruck 2 phase while work gets going on SuperTruck 3. This month, Volvo becomes the first of that group to debut an all-new truck incorporating lessons learned in the SuperTruck program. Starting with a clean sheet of paper, the new Volvo VNL is said to be as much as 10% more fuel efficient than before, a stat to get fleet managers and owner-operators to pay attention. Even carmakers tout a 10% increase in fuel economy, and the benefit — like the size — is so much larger in trucks. Let's keep it easy and say a solo driver does 100,000 miles in a year in a truck that averages 7 miles per gallon. That driver needs 14,286 gallons of diesel to do those miles; at $4 per gallon, that's $57,144. If the VNL driver gets 10% better fuel economy and his truck returns 7.7 miles per gallon, this driver only needs 12,987 gallons of diesel, and pays only $51,948. Tell a fleet manager they can save $5,000 per truck, and assuming a sensible purchase price and consistent reliability costs, that fleet manager is going to want to set up a meeting. Just as with car redesigns, a lot of little changes went into this, some we'll recognize from the car world. The VNL's cab adopts a stronger wedge shape and sharper corners. Instead of the usual large, flat windshield sealed with a gasket, the new VNL gets a curved windshield bonded to the body. Tighter gaps between exterior components like the bumper and hood leave fewer spaces for turbulent, draggy air to develop. Volvo also reworked the area behind the cab to reduce one of the greatest aerodynamic maelstroms, the gap between cab and trailer. The D13 engine up front is said to be more fuel efficient and more durable, offering a range of outputs from 405 to 500 horsepower and from 1,748 to 1,947 pound-feet of torque. Considering that the first VNL generation lasted 22 years before a major redesign, from 1996 to 2018, Volvo incorporated powertrain flexibility into this one.

Daimler and Volvo could jointly develop internal combustion engines

BERLIN — Luxury German carmaker Daimler and Volvo, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources. The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody. A Daimler spokesman said the company's cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further. Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs. In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines. Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains. Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China. Geely bought Volvo Cars in 2010 from Ford, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands. Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely's Lynk brand. Both companies share and develop common vehicle platforms. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Volvo Cars plans $20 billion stock IPO this month, sources say

STOCKHOLM — China's Geely Holding is in advanced discussions with banks to list its Volvo Cars unit in the coming weeks, three sources told Reuters, in what is expected to be one of Europe's biggest initial public offerings (IPOs) this year. Volvo Cars is aiming for a valuation of about $20 billion in the planned Stockholm listing, the sources said, with one saying the launch was penciled in for the end of September. Goldman Sachs and SEB are leading the transaction, while other banks including BNP Paribas, Carnegie and HSBC are also involved in the deal, the sources added. Volvo Cars declined to comment. Geely did not immediately respond to an emailed request for comment outside normal business hours in China. SEB and Goldman Sachs declined to comment. The other banks were not immediately available. Geely, which bought Volvo from Ford more than a decade ago in the biggest acquisition by a Chinese firm of a foreign car maker, sought to float shares in the Swedish firm in 2018 but then pulled the deal citing trade tensions and a downturn in automotive stocks. Traditional carmakers have fallen out of favor in recent years, as Tesla has risen to be one of the world's most valuable companies, putting the focus on electric vehicles. Many European firms have pivoted toward the electric sector, including Volvo, which aims to only make fully electric cars by 2030 and owns a 49.5% stake in electric car maker Polestar. Valuation Gothenburg-based Volvo Cars aims to secure a valuation of roughly $20 billion, one of the sources said, while another mentioned a possible range of $20 billion to $30 billion. A third source suggested a $16 billion valuation was more realistic, citing the firm's revenue outlook. A $20 billion valuation for Volvo would be equivalent to six to seven times its earnings, a level some analysts say is high although it would put it in line with rivals Daimler and BMW. Tesla's valuation is more than 70 times that. NordLB's automotive analyst Frank Schwope estimated a valuation range of $10 billion to $15 billion. "The strong margins seen in the first half of 2021 are unlikely sustainable as the market benefited from a strong post-pandemic rebound that is unlikely to continue," Schwope said. For Geely's founder Li Shufu, who bought Volvo for $1.8 billion, the listing is a milestone on the road to transport of the future, where cars are part of an electrified network of mobility services generating data and business opportunities.