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Published on October 10, 2007

 Helping to slow down global warming by producing "green" automobiles might appear to be a job for mass-market sellers like Toyota and Honda.

But the premium marques are showing immense interest in the field and have produced some of the most economical and viable technologies for reducing automotive emissions of greenhouse gasses.

Volvo's environmental consciousness goes back a long way. One of its most notable milestones was 15 years ago, when it launched its Environmental Concept Car. The car used a gas/electric hybrid power system many years before such a system was even within hailing distance of production reality. As far as possible, it was also built using materials that did not cause environmental problems during production and could be easily recycled.

"Volvo has been researching alternative fuel technologies like CNG, LPG and others. Besides being a premium carmaker, our focus is also on decreasing an automobile's carbon footprint during its lifetime," says Volvo Thailand's president Paul Stokes.

"It does, however, depend on the interest of each country [in seeing the technology work], whether we are actually able to sell an alternative fuel product or not. Scandinavian countries, for example, promote environmental friendliness and the government policies are such that they encourage the public to be more green."

Stokes joined Volvo more than 10 years ago in the UK and before being appointed president of Volvo Thailand, he was in charge of Volvo Malaysia. He says Thai people are very accepting and open to new ideas, such as the adoption of alternative fuels. But he's worried about the government's approach to the issue.

The government's current stance is to support both CNG and ethanol-based fuels. Next year it will decrease by 5 per cent the excise tax on all vehicles sold that are capable of running on E20 [petrol with 20 per cent ethanol added].

Stokes accepts that Thailand has large quantities of raw material such as vegetable crops and oil palms that can be used to produce ethanol and biodiesel, and that this would benefit the country by decreasing its dependence on imported fuel.

"However, if auto-makers don't bring in vehicles capable of running on E20, then the oil companies will not distribute the fuel as it will be of no use. As a result, manufacturers will not produce ethanol and we have a chicken-and-egg situation on our hands. The situation is such that the government needs to take the first steps in the right direction," Stokes says.

Meanwhile, Volvo is planning to bring its S60 Flexifuel racer to Thailand. The car, which took part in the Swedish Touring Car Championship, runs on E85, a fuel with 85 per cent ethanol. It won the first few rounds of the championship despite claims that performance would be lost by switching from petrol to ethanol under the FIA Super 2000 regulations. The Flexifuel racer is now headed for the World Touring Car Championship.

"We want to show the world that turning to alternative fuels does not mean that you have to hug trees and be boring and slow. The E85-powered S60 clearly indicates that performance does not have to be sacrificed to be more environmentally conscious," says Stokes.

In the Thai market, Volvo has not been as active as its competitors, such as BMW and Mercedes-Benz, following the 1997 financial crisis. However, Stokes is now pushing a new image of a sportier Volvo that maintains its premium quality and family orientation, but is not the boxy car of the past, focused purely on safety issues.

The company is supporting the new image with products that appeal to younger customers. The recently launched C70 convertible and the C30 3-door hatchback, which is expected to be launched in Thailand later this year, clearly point in this direction.

Stokes says future models being considered for the Thai market include the S40 and V50 along with the XC60, which is currently at concept stage but will become a production model in the near future. The S80 was launched last month and the company expects 100 units to be sold by the end of this year.

"In the meantime, while alternative fuels are stepping into the scene, the temporary answer would be to choose diesel. Diesel engines have been greatly developed from their earlier reputation of being smelly, loud and difficult to maintain. New-generation diesel engines are quiet, very reliable and provide much better mileage. Although this does not decrease dependence on foreign oil, it does provide more mileage for the same amount of fuel," he says.

In terms of sales, Volvo lags behind other players in the premium car market, including BMW and Mercedes-Benz, even though all three companies have production facilities in Thailand. Stokes says that with its new range of products, this is about to change and Volvo expects to regain its shine within three to five years.

 Vijo Varghese

 The Nation