“Partnership is the new leadership,” said Martin Lundstedt, President and CEO of Volvo Group. His CES® 2025 keynote showed how the company’s innovative collaborations put it at the forefront of groundbreaking technological developments that can achieve meaningful transformation.  
 
Volvo Group is one of the world’s largest producers of trucks, buses, construction equipment, and propulsion systems. These are the essential components of transportation and logistics that make modern life possible, whether that’s keeping grocery store shelves stocked, clearing trash from our streets, or ensuring hospitals have the life-saving equipment they need.  
 
However, there have also been negative side effects, such as climate impact, pollution, and noise. By using technology to innovate the transportation industry and mitigate those side effects, Volvo Group is shaping the world we want to live in. Lundstedt says this shift toward sustainable transportation can take some time, but it will happen. 
 
"It will happen because it makes sense for everyone involved and because so many companies and societies across the globe want to see those changes,” he said. “The transformation will lead to new levels of prosperity and sustainability. The companies and people who can make it happen will get rewarded with high levels of growth.”  
 
Achieving change, such as Volvo Group’s goal to reach net-zero emissions by 2040, will be a collective effort. Lundstedt said Volvo Group is leveraging partnerships in an “equation” with five key variables: product and services offering; total cost of ownership (TCO), including incentives, regulation, and carbon targets and pricing; infrastructure; fossil-free energy production; and supply network. This focus on innovation and collaboration is ingrained in Volvo Group’s Swedish heritage, as shared by special guest speaker Ebba Busch, Minister for Energy, Business, and Industry and Deputy Prime Minister for Sweden. 

Also speaking during the keynote was “master of tech” Lars Stenqvist, Volvo Group’s CTO. He explained the company’s three-pronged approach to clean vehicle power: electric battery, hydrogen-powered fuel cells, and combustion technology with renewable fuels. The goal, he said, was creating solutions that are 100% fossil-free, 100% safe, and 100% more productive.  
 
During a VR demonstration, Stenqvist introduced the Volvo VNL, the company’s flagship truck in North America that boasts major powertrain enhancements and a more aerodynamic cab design to improve energy efficiency. It also includes new active drive assist and pedestrian detection systems for optimal safety, one of Volvo Group’s core values. These trucks are cleaner and safer, but they’re also smarter thanks to seamless connectivity that can monitor vehicle performance and even predict the breakdown of components to minimize downtime in critical operations.  
 
Other transportation innovations from Volvo Group include a Mack electric garbage truck, and an electric excavator and a hydrogen-powered articulated hauler for more eco-friendly construction sites. For commercial vehicles like these, Volvo Group has partnered with competitor Dyna to create the new Coretura software-defined platform that Stenqvist said will pave the way for the next generation of vehicles.  
 
Autonomy will also be critical for the future of transportation. Volvo Group’s autonomous wheel loader uses AI to create self-learning capabilities, while its hydrogen-electric boat facilitates seamless docking based on weather and water conditions. And because freight volumes will increase fivefold through 2050, Volvo Group and Aurora are developing autonomous trucks. Sterling Anderson, Co-founder and Chief Product Officer of Aurora, said the trucks’ perception system — utilizing high-resolution cameras, imaging radar, microphones, short-range lasers, and proprietary technology — is faster than human response times to potentially dangerous situations.   

“This is not the end; this is the turning point,” Lundstedt said. “Because history shows that this stage is where strategies are refined, resilience is tested, and the foundation for success is built. Because the right tech solutions will eventually win and soon momentum will accelerate again, and those prepared will lead the way forward.”  

Why It Matters 

Rapid climate change requires companies to rethink the old norms for mobility and explore new pathways toward greater sustainability. Strategic industry/government partnerships can leverage current technology and equipment to create vital change across the supply chain, for the well-being of society and the health of our planet.

Key Takeaways 

• Decarbonization Strategy: Volvo Group is investing in different types of clean power (electric battery, hydrogen-powered fuel cells, and combustion technology with renewable fuels) to reach its net-zero goals.  
• Partnerships Are the New Leadership: Collaborations are key to driving innovation forward. Everyone can play a role, including governments, businesses, and even consumers.  
• Tomorrow’s Cities Can Be Cleaner Cities: Electric or hydrogen-powered commercial and construction vehicles can reduce noise and air pollution while still handling the toughest jobs.
• Smarter = Safer: Autonomous and connected vehicles will drive the future of transportation.
• The Time for Change Is Now: With our heavy reliance on transportation and logistics systems, it is critical to make them more sustainable for the future.