Saab BioPower and the Swedish Bioethanol Breakthrough
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1 Saab BioPower and the Swedish Bioethanol Breakthrough Jan Åke Jonsson Managing Director Saab Automobile Automotive News Europe New Powertrain Congress March 28, 2007
2 Driving forces behind renewable fuels Reduce fossil CO 2 emissions Energy security Oil price volatility & need to diversify energy sources Biofuels are an opportunity for agriculture and domestic industry growth
3 GM Advanced Propulsion Technology Strategy Improved Vehicle Fuel Economy & Emissions Displace Petroleum Hydrogen Fuel Cell Battery Electric Vehicles (E-Flex) IC Engine and Transmission Improvements Hybrid Electric Vehicles (incl. Plug-In HEV) Time Energy/Fuel Diversity Petroleum (Conventional & Alternative Sources) Bio Fuels (Ethanol E85, Bio-diesel) Electricity (Conventional & Alternative Sources) Hydrogen
4 Saab BioPower
5 Saab BioPower Formula Flexible runs on E85 or petrol or any blend in between Price ca over petrol version Significantly reduced impact on the + environment More engine power (+30hp) on E85 = Saab BioPower
6 Saab 9-5 BioPower is #1 environmental car in Sweden...and best selling flex-fuel car in Europe Rapid growth of environmental cars in Sweden Environmental car sales up 150 % vs and 415% vs 2004 (13% market share) Saab BioPower For d Flexif uel Volvo Flexif uel Volvo Bi -f uel Toyota Hybr id Infrastructure growth ca. 700 pumps (ca. 20% of total) Saab 9-5 BioPower leads segment outselling Toyota Prius 5:1 Ser ies sales Sweden *Environmental = Vehicles that can run on alternative fuels, hybrid or extremely low tailpipe emissions
7 Why is Saab 9-5 BioPower successful? Vehicle industry Government Consumer
8 Benefits with Bioethanol (E85) Renewable fuel Reduces greenhouse gas emissions Helps reduce dependence on petroleum and creates greater diversity in our energy sources and supplies Uses and adapts existing technology Uses existing supply/distribution infrastructure No big capital investments required Flexibility in the transient period (change over from petrol without interruptions) Parallel development of technologies for long term perspective
9 Why is BioPower relevant for Saab? High customer relevance Saab customers appreciate performance, but are keen for responsible consumption Easy No compromise or behaviour change required of customers Innovation Challenges conventional thinking Saab turbo heritage High performance and good efficiency. BioPower utilizes the same recipe. Scandinavian brand High social responsibility and care for the environment
10 Customers choose BioPower for enviromental reasons...and cost advantages Reasons for Purchase Class of car; 4% Ethanol; 7% Saab; 4% Other; 4% Economical advantages 35% Positive environmental effect 45% Increased performance; 2% Surver of Company and Private BioPower drivers, Sweden Total Survey = 200
11 What has the Swedish Government done? No energy- or CO 2 tax on biofuels until 2008 R& D support for more energy-efficient and more cost- effective processes for biofuel production 25% of all vehicles used by the Government or other authorities to be environmental cars* in %-40 % company car tax relief (depending on technical solution) Free parking in cities for environmental cars* Congestion charge relief (Stockholm) A law enforcing all major filling stations to provide an alternative fuel has passed N.B.: France and Ireland are also active and adopting similar policies
12 How can policy support the introduction of alternative fuels? Need to be standardized and simple Must consistently support overall vision Balanced between today and longer term Support further developments Fast in implementation Create customer sense of urgency
13 BioPower concept cars explore future direction Saab Aero X The eco-friendly sports car Powered by a 400hp BioPower engine (E100) Saab BioPower Hybrid Concept BioPower (E100) combined with twomode hybrid technology BioPower 100 Concept Production-based engine optimised for E100 Demonstrates further potential for bioethanol and turbo for rightsizing
14 Saab is commited to BioPower approach Jan-June July-Dec Jan-June July-Dec Jan-June July-Dec Jan-June 2.0t World premiere Paris International PR events 2.0t SoS Sweden 2.0t roll-out Europe.. Aero X Concept the eco-friendly sports car BioPower Hybrid Conceptzero fossile CO2 emission 2.3t premiere London 2.3t SoS Sweden Cont d BioPower roll out Europe t = Full range BioPower 100 Concept
15 Summary We know that we have to change the transport system for the future and the transition period is long Options such as E85 are available to make a difference already today Policy, industry and consumer needs to work together for a successful introduction We know that it is possible to make a change. Sweden is a good example!
16 Thank you for your attention
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