Volvo’s Persson Sees Energy, Environment Issues as Critical for Trucking

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LOUISVILLE, Ky. — Energy and the environment remain issues of great importance for trucking, in terms of the types of fuels consumed and regulations and laws that arise from the concern, the CEO of Volvo Group said here.

Olof Persson, Volvo’s CEO since 2011, spoke here March 27, addressing the Heavy Duty Manufacturers Association during the Mid-America Trucking Show.

Persson said “$45 per barrel won’t last forever,” so the need for natural gas and dimethyl ether will not disappear. Natural gas plays an important role now, he said, and DME remains one of Volvo’s favorite issues over the long term.

“It could really be a game-changer,” he said.

Switching to the regulation of greenhouse-gas emissions by trucks, Persson reiterated his company’s long-standing position that federal regulators should set complete vehicle standards.



“There are no loose engines pulling freight down the highways,” Persson quipped. More seriously, he said engineers prefer to look at a system as a whole to see how it can be improved.

Forcing a focus on just engines could end up being counter-productive, he warned.

Persson also took a swipe at glider kits that are used to modify older trucks into a useful second life.

“Their effect is to allow older, dirtier engines to remain in new trucks. I find it curious they are so broadly permitted,” Persson said, adding that Volvo companies will not participate in such a market.

In general he was a happy man addressing a happy group of his suppliers. While the European truck market is “flat-ish" and South America has slow economic growth, North America remains genuinely strong, Persson said.

“Our immediate challenge is managing near-record volumes, a challenge we’d all like to have,” he said.

Asked whether rearview cameras might be superior to the mirrors that are standard today, he replied, “You run into a lot of legislative issues you need to address.”

Government issues will also play a major role if there really are to be autonomous cars and trucks, he said.

Persson said he understands the importance of sustainable business operations — economic, environmental and societal — but he would like to see old and poorly maintained infrastructure improved and said regulators and legislators need to catch up to the pace of technological change.

Also at the event, Tim Myers, president of Alcoa Wheel and Transportation Products, succeeded Pat Cavanagh, CEO of Enovation Controls, as chairman of HDMA.