Volvo's Product Development Practices: Focus on Safety

In January 2004, at the North American International Auto Show held in Detroit, the Swedish car manufacturer - Volvo Car Corporation (VCC)³ - unveiled two new safety systems for its automobiles - Adaptive Cruise Control and Warning System with Break Support. Industry analysts pointed out that these state-of-the-art safety technologies reaffirmed Volvo's top position in the field of automobile safety and contributed towards better accident prevention in Volvo cars. Commenting on the systems, Lex Kerssemakers, Vice-president, Global Marketing, and Head, Product Planning, at Volvo Cars said, "We see these advanced systems as vital in our ongoing strategy of remaining world leaders in the field of safety."⁴

By doing so, the company enhanced its brand image to such an extent that the name, 'Volvo' became a synonym for safety. The company was credited with introducing several path breaking safety technologies during its eight-decade history. For instance, the three-point seat belt, which Volvo introduced in 1958, was later made mandatory for automobiles across the world.

Volvo also introduced the side impact protection system in 1992, five years before they were made compulsory in the US (Refer Exhibit I for Volvo Safety Firsts). Analysts felt that Volvo's constant emphasis on safety research played a major role in developing advanced safety technologies.