The green drive Scania

THE GREEN DRIVE

Scania, the global manufacturer of trucks and buses, has intensified its focus on making transport more environmentally friendly.

The company offers the transport industry’s widest range of vehicles that can run on alternative fuels and is also a technological leader in autonomous and electrified vehicles.

Headquartered in Södertälje, Sweden, Scania is a global company with sales of trucks, buses, engines and services in more than 100 countries. The group’s production units are located in Europe, South America and Asia. The company operates globally, with most of its sales achieved in Europe.

The company’s unique modular system allows it to offer an extremely wide portfolio of products using relatively few components and parts. This allows the company to optimise its solutions quickly and easily for specific customer needs, applications, and markets.

For example, the technology for hybrid and battery electric trucks builds on the modular system with components tried-and-tested throughout Scania’s truck range, well-known for their durability and reliability. Modularisation also creates a lean and flexible production system in which it is possible to introduce new technologies rapidly, bring them to market, and scale them up quickly.

Innovation at Scania is largely focused on advancing low-carbon transport solutions. This involves significant investment in sustainable transport solutions that are viable today, such as efficient powertrains powered by renewable fuels.

At the same time, the company is making long-term decisions to develop the autonomous, connected and electrified transport technologies of tomorrow. Currently, Scania has the transport industry’s widest range of vehicles that can run on alternative fuels and is a technological leader in autonomous and electrified transport solutions.

Scania’s efforts towards greener transport solutions have been widely recognised. In four consecutive years Scania has won the prestigious “Green Truck” award, and figures from the European Commission confirm that Scania is the only heavy vehicle manufacturer in Europe that has managed to reduce CO2 emissions below the CO2 limit set by the EU.

A year like no other

In 2020, Scania was affected by the global pandemic like everyone else. A large part of Scania’s operation was put on hold during the initial several months of the pandemic. Helped by the support packages in different countries, the company was able to keep a large part of its workforce on furlough during the most financially challenging time but still had to make the tough decision to decrease the workforce significantly.

Still, its focus on carbon emission reduction has continued. In May 2020, Scania became the world’s first heavy commercial vehicle manufacturer to have climate targets formally approved by the Science Based Targets initiative. The targets include halving carbon emissions from its own operations from 2015 to 2025, as well as reaching a 20% reduction in CO2 emissions from Scania trucks and buses when in use, which constitutes more than 90% of Scania’s environmental impact.

The year saw Scania achieve a milestone with the commercial launch of its first series-produced electric truck range, which will play an important role in its ongoing efforts to decarbonise the portfolio. To prepare for larger sales of electric vehicles, the company has made significant investments in the battery industry, including a battery assembly plant and a battery laboratory, a joint project with Northvolt, the European supplier of sustainable, high-quality battery cells and systems.

In 2020 Scania also took the historic decision to invest in its own industrial operation in China, purchasing a company with manufacturing rights in China - a unique step, since historically, foreign companies have mainly operated in China through joint ventures with local manufacturers. The goal is to gradually expand its operation in line with the market’s increasing demand for modern vehicles to support efficient logistics and sustainable transport.

Start of a new era

Despite the challenges, Scania has emerged from the difficult year in robust shape, set to lead the shift towards sustainable transport, and ready to make use of new opportunities emerging as electrification and autonomous technology disrupt the transport sector.

The new CEO and President of Scania Mr Christian Levin who was appointed by the Board to start in his role on 1 May 2021, commented: “After last year’s uncertainty due to the pandemic, the recovery in demand has continued to be strong during the first quarter of 2021. Our customers’ capacity utilisation is good and data gathered from connected Scania vehicles show a high level of transport activity, particularly in the long-haul and construction segments.”

He noted that in early 2021, the company started the construction of its new battery assembly plant in Södertälje. The facility, which will be fully operational by 2023, clearly demonstrates Scania’s determination to take a leading role in heavy vehicle electrification.

“To deliver increasing volumes of electric vehicles is crucial for Scania’s commitment to fulfilling our climate targets. New to the CEO position, I am looking forward to continuing to drive the shift to sustainable transport with Scania in the lead. The strategy remains unchanged, and to be able to deliver on the strategy, we are set to accelerate the ongoing transformation of the company.” n