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More Productive Trucks House of Sweden December 1, 2010

More Productive Trucks House of Sweden December 1, 2010. Ron Huibers Senior Vice President – Sales & Marketing Volvo Trucks North America. Challenge your thinking. 1956. Gallon of milk: $0.97 Gallon of gas: $0.23 U.S. population: 168,903,031 Cross-country drive time: 3 weeks.

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More Productive Trucks House of Sweden December 1, 2010

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  1. More Productive TrucksHouse of SwedenDecember 1, 2010 Ron Huibers Senior Vice President – Sales & Marketing Volvo Trucks North America

  2. Challenge your thinking 1956 • Gallon of milk: $0.97 • Gallon of gas: $0.23 • U.S. population: 168,903,031 • Cross-country drive time: 3 weeks

  3. Challenge your thinking 2050 • Estimated price, gallon of milk: $7.00 • Estimated price, gallon of gas: ??? • Estimated U.S. population: 420,080,587

  4. Challenge your thinking 2010 • Gallon of milk: $3.50 • Gallon of gas: $2.80 • U.S. population: 307,006,000 • Estimated flight time from Earth to the moon: 3 days

  5. We can’t base what we do today on what we did or thought yesterday. Things change.

  6. Today – Dwindling Productivity • Cost of Bottlenecks • 226 bn hours (sitting in traffic) • $19 bn per year in delays, fuel • CO2 emissions • (based on 2006 FHWA study of 326 congested areas) • Growth by 2020 • Traffic +40% • Total freight tonnage +26% • Truck population +26% • Truck miles driven +27% • Total tons carried +31% • In 20 years, congestion costs are expected to be 1.6% of GDP.

  7. Transportation Productivity Gap 420 M Productivity Gap Population Freight Tonnage Infrastructure/Equipment/Etc. 169 M 1956 2050 Time

  8. The Challenge To deliver more freight, more efficiently in support of current & future demands

  9. Call to Action • Innovate and adapt in ways that will allow progress • Stop waste & inefficiency; lead – don’t follow – global competitors • Address fuel efficiency, freight productivity & traffic congestion • Tackle environmental concerns & safety issues • Use more productive trucks as part of the transportation mix

  10. LCVs Could expand use selectively and strategically in U.S. Heavier Trucks To improve productivity, save fuel and help the environment Truck-Only Lanes A good idea, but costly and not likely in the near term Improved Logistics Innovation needed to move more freight per load Potential Solutions

  11. Increased Freight DemandStrategic Requirements Upgrade Infrastructure Invest in Logistics Maintain safety

  12. Benefits • Less highway congestion • Reduced CO2 emissions • Lower fuel consumption • Less dependence on foreign energy • Reduced potential for accidents (fewer trucks on the road) • Lower prices due to reduced transport cost per commodity

  13. Thank you!

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