CSR
Report2018

UD Trucks Corporation

CSR
Report2018

Contents
Message from UD Trucks

02

About UD Trucks Corporation

03

CSR at UD Trucks

05

Feature 1

07

Launch of the New Heavy-duty Truck

So Customers can Selectthe Most Optimum Truckfor their Businesses

Feature 2

Improvement of Quality in the Field

Editorial policy
UD Trucks publishes its CSR
reports for our stakeholders tounderstand our approaches andefforts regarding the company’s
corporate social responsibilities that
we believe we should fulfill to
realize a sustainable society.
This 2018 issue includes feature
pages on the all-new Quon truck
and our after-sales service, and in
the report section, we present ouractivities in the five prioritized
themes at UD Trucks.
Scope of the report content“Going the Extra Mile”
in not only Products
but also Services

CSR activity report

This publication is prepared toreport on UD Trucks Corporation,
but it also encompasses certain
activities conducted by the Volvo
Group for UD Trucks as one of its
business areas.
Coverage period
This report covers fiscal year (FY)2017 (from January 1 to December
31, 2017). It also partially contains
contextual information and datafrom previous periods, reports onsome activities conducted in
FY2018, and future action plans.
Published in November 201801

11(1) Improving Customer Satisfaction

15(2) Better Collaborative Relationships
with Business Partners

20(3) Allowing Employees to Perform totheir Full Potential

21(4) As a Member of Society23(5) Our Environmental Management

25
29

Environmental Data
The Volvo Group33

Message from UD Trucks

We will provide products and solutions that support
the future of logistics and contribute to realizing
a fulfilling society.
Since its foundation in 1935, UD Trucks has continued to pursue the creation of new products,
services, and solutions, based on the cornerstone of our founder’s vision: “To make the trucks theworld needs today.”To realize this vision, it is vital that we listen to the many voices of customers and otherstakeholders, resolve the various business and social issues, connect such activities to businessgrowth, and approach business with a “creating shared value” (CSV) mindset, which values
sharing of profits.
With these thoughts in mind, UD Trucks developed its corporate social responsibility (CSR)
strategy in 2017 based on its business strategies and brand traits, while retaining consistency with
the CSR policy of the Volvo Group, which was being practiced earlier. Under this strategy, in
addition to strengthening the building blocks of CSR activities, such as corporate governance,compliance, and risk management, we will pursue CSV, which focuses on the logistics dimensionsof “environment,” “safety,” “people,” and “community needs.”
As part of these efforts, Touch & Ride events were held nationwide for the new heavy-duty truck
Quon in 2017, where customers experienced high levels of drivability, fuel efficiency andenvironmental care, and safety. When suggesting products that contribute to resolving customers’
business challenges and environmental issues through such activities, we focused on renewing
workshops and improving after-sales service so that our strengths regarding productivity anduptime are sufficiently implemented at customers’ locations.
Since we are a community-based company, we also engage in activities such as traffic safetyseminars for children in local areas where our business offices are located as well as Internet
training courses for the elderly.
ESG, which indicates engagement in environmental, social, and governance-related activities, iscurrently receiving increasing attention on a global scale as a new metric in business management.
Furthermore, to drive such efforts, the United Nations developed the Sustainable Development
Goals (SDGs) and issued the Paris Agreement, an international framework for environmental
issues. Responses to such requirements by the international community and participation in thedevelopment of a sustainable society are responsibilities of global companies, and they can lead toa sense of pride toward everyday work and provide motivation for the future.
By sharing such aspirations with all employees, we seek to realize our CSR vision: “Enhancing
sustainable logistics and contributing to the welfare of people by resolving social issues.”

Takamitsu Sakamaki
President and Representative Director
UD Trucks Corporation

02

About UD Trucks Corporation

A truck manufacturer that
supports logistics
UD Trucks was founded in 1935. Since its foundation 83 years ago as a commercial automobile manufacturer, we havebeen pursuing the manufacturing of better products while being discerning with regard to changes in the society, utilizing
advanced technologies, and listening to the voice of customers.
Today, UD Trucks faces new challenges, such as the once-in-a-100-years transformation of the automobile industry andshortage of truck drivers. In an age when further efficiency is required in logistics, it is important that we understand themeaning of our existence and continue to contribute to forming a sustainable society.
UD Trucks will contribute to the realization of a sustainable society and logistics and strive for long-term business growthby having our colleagues share and assertively participate in both our mission as a company and our values, that guide
us in achieving the mission.

Our mission
UD Trucks provides the trucks and services the world needs today

Our values
1. Going the extra mile for customer successWe always make the extra effort to support our customers, partners, and colleagues.
2. Ultimate Dependability through trust
We give trust in order to be trustworthy.
3. Excel on the essentials for performance
We focus on the most important things for our customers and in our daily work.
4. Smart and modern by embracing change
We give that little extra that changes hearts as well as minds.
5. Gemba spirit with passion
We are passionate and proud of the work we do and the business we run.

Company profile(as of October 1, 2018, except for the number of employees)

Company name
UD Trucks Corporation
Date of foundation December 1, 1935
Head office
1-1, Ageo-shi, Saitama 362-8523, Japan
Capital77.5 billion yen

03

Number of
employees

6,210 employees including contract and temporary employees(as of the end of December 2017).

Main businessJapanese business
Development, manufacture, export, and sales of heavy-duty trucks;
sales of medium- and light-duty trucks; manufacture and sales ofvehicle components; maintenance and sales of service parts fortrucks and buses; import and sales of the Volvo brand products.
Businesses outside of Japan
Outside of Japan, the following businesses are carried out as the
Volvo Group.
Development, manufacture, and sales of heavy-, medium-, and light-duty
trucks for growth markets; development, manufacture, and sales ofbuses for growth markets; manufacture and sales of vehicle components;
maintenance and sales of service parts for trucks and buses.

Domestic groupcompanies

VFS Japan Co., Ltd., New-Mech Co., Ltd.

Main locations
outside of Japan

Singapore Office, Thailand Plant, Parts Distribution Centers(Singapore, Dubai, South Africa, U.S.A.)

Officers
Executive Chairman
and Representative
Director
Joachim Rosenberg

President andRepresentative
Director
Takamitsu Sakamaki

Director (part-time)
Kerstin Renard

Auditor
Noriaki Fujii

Production sites and facilities in Japan
We have a service network of 165 locations across Japan
to offer support for our customers’ business.
Number of UD Trucks’ dealers in their respective regions(including private dealers)

Sanyo Regional Parts Distribution Center
Kyushu Regional Parts Distribution Center

ChuShikoku

Tohoku23

Hokuriku

20 15

Kyushu20

15

Hokkaido Regional Parts Distribution Center
Gunma Parts Distribution Center

Motegi Test Course
Volvo Penta Office

Chubu

Kinki

16

UD Trucks Headquarters / Ageo Plant /Training Center

19

Kanto

37

History of UD Trucks

Changes in global sales volume

History of the company

1935(as of October 1, 2018)

Hokkaido

History of the products(thousands of vehicles)

Nihon Diesel Industries, Ltd. is establishedin Saitama, Japan, aimed at producing diesel
engines.

1938
1939

21.6
19.0

Completion of the first diesel engine.

19.8 20.4 20.2

Completion of the first diesel truck, which undertooka total of 3,000 km legendary test run.

1942

The company is renamed as
Kanega-Fuchi Diesel Co., Ltd.

1946

The company is renamed as Minsei Sangyo Co., Ltd.

1950

The company is renamed as
Minsei Diesel Industries, Ltd.

1955
1958

Birth of the original UD engines.

2013

Birth of Japan’s first truck with a more than
10-ton payload 6TW model, which is leveraged
in the construction of the Shinkansen network.

1960

The company is renamed as
Nissan Diesel Motor Co., Ltd.

1962

Ageo Plant commences its operation.

1975
1990

Launch of the medium-duty truck Condor.
Launch of the Big Thumb with improved
low emissions, comfort, and safety.

2004

2014

AB Volvo becomes a major shareholder
in the company.

2010

The company is renamed as
UD Trucks Corporation.

2013
2014

Merger is completed with the sales company
UD Trucks Japan Corporation.

Asia

2015

The company’s 80th anniversary is celebrated.

2017

Launch of the light-duty truck Kazet.

Launch of the all-new Quon, as well as birth ofthe medium-duty truck Croner and light-duty truck
Kuzer for global growth markets.

2017(fiscal year)(number of vehicles shippedfrom the plants in FY2017)

Latin America

Birth of Quester, a brand new heavy-duty truck
developed for global growth markets.

2016

Sales volume by market

Birth of Quon, UD Trucks’ flagship heavy-duty truck.

2006

2015

168
16,494

Japan

10,979Southeast Asia

4,398South Asia

178

Middle East

939

Oceania

1,202

Africa

2,354

Total

20,218Brands and products sold by UD Trucks Corporation

UD Trucks

Volvo Trucks

Volvo Penta

Volvo Construction Equipment

Heavy-duty truck Quon, medium-duty
truck Condor, light-duty truck Kazet,
and heavy-duty truck Quester,
medium-duty truck Croner, light-duty
truck Kuzer for the growth markets.

Import and sales of Volvo brand’s
heavy-duty trucks. The main products
in Japan include Volvo FH 4×2 and6×4 tractors.

Import and sales of Volvo Pentabrand’s marine and industrial engines.
The main products in Japan include
inboards, IPS marine engines, andgenerator engines.

Import and sales of Volvo brand’s
construction equipment. The main
products in Japan include wheel
loaders and articulated dump trucks.

04

CSR at UD Trucks

We pursue activities designed tocreate shared value with stakeholders.
CSR Strategy
At the same time, all business activities that CSR
must carry out are defined as “fundamental CSR,” andefforts based on the reinforcement of corporate
governance, compliance, Volvo Group’s Code of Conductand main policies, and ISO compliance is promoted.
The CSR strategy is consistent with the Volvo
Group’s CSR policies, reflects our company’s businessstrategy and brand characteristics, and contributes togenerating synergy effects by reinforcing individual
brands the Group aims for. UD Trucks will fulfill its CSR
while encouraging participation by employees andcontribute to realizing a sustainable society.

UD Trucks developed an original CSR strategy to specify
the direction of CSR activities it should engage in and to
deploy activities in an aligned manner.
In this CSR strategy, the goals of our CSR are
embodied in our CSR vision. Additionally, we focus on
generating value for both stakeholders and our company
by engaging in resolving social issues and CSV (Creating
Shared Value), which aims toward sustainability.
In promoting CSV, we seek to contribute to society by
deploying our resources, such as knowledge, expertise,personnel, and facilities, by focusing on “logistics” and the“community,” which are closely related to our business.
Furthermore, within “logistics,” we identify the three focus
areas—“environment,” “safety,” and “people”—that leadto further specific and effective activities.

CSR Vision

Enhancing sustainable logistics and contributing to the welfare of people by resolving social issues.

Category

Theme

Focus Area

Fundamental CSR

CSV (Creating Shared Value)

Logistics

Environment

SafetyCommunity

PeopleCommunity
needs• Corporate governance• Compliance• Risk management• Supply chain management• ISO14001, ISO9001• The Volvo Group Code of
Conduct• Group policies

Participation by employees

Code of Conduct
In the Volvo Group, we specify basic principles andbehavior that all employees globally should comply with inour “Code of Conduct,” in order to carry out a business thatis ethical and compliant with laws. The entire code wasrenewed in 2017 to strengthen compliance much morethan before, specify its relevance to employee behaviors,and promote application by each and every employee.
Additionally, to ensure internal penetration, a newe-learning program was developed and implemented.

05

E-learning (above)
The Volvo Group Code of Conduct
cover page (left)

CSR management system
The persons in charge of CSR/Environment
Management are the central figures in promoting CSR. In
addition to aggregating information on CSR activities
carried out in various internal divisions and coordinating
them, a core team is developed in cooperation with thepersons in charge of Communications and Brand
Management. Companywide CSR frameworks, including
CSR strategy planning and raising awareness bothinternally and externally are contemplated.
Moreover, to ensure the deployment of activities thatalign with group-wide directions, each division, including
overseas operations, appoints designated CSR staff,
who have regular meetings to share information
organization-wide and to plan and discuss specificactivities. They also report the progress of these activities
to the executive team in meetings and receive
instructions, decisions, and approvals from management.

UD Trucks executive team
CSR core team

(CSR/Environment Management/Communications/Brand Management)

Domestic Sales and Aftermarket Division
Overseas Sales and Aftermarket Division
Product Development Division
Manufacturing DivisionCorporate Governance Division
Overseas operations

Compliance
We seek business activities that comply with the fiveimportant general rules, namely, “We respect one
another,” “We earn business fairly and lawfully,” “Weseparate personal interests from business activities,”“We safeguard company information and assets,” and“We communicate transparently and responsibly,” which
are specified in the Volvo Group’s Code of Conduct.
In these general rules, it is clarified that businessactivities should strive to comply with Competition Law,

Anti-corruption Law, Labor Standards Law, otherlabor-related laws, domestic and international laws, andrelevant Volvo Group regulations. Compliance educationfor employees, including management, is being carriedout continuously through classroom programs,
e-learning, and other necessary platforms. We also
implement whistleblower and auditing systems to allow
suspected cases of non-compliance to be reported fortimely and appropriate corrective action.

Risk management
In December 2017, a Security and Safety Department
was established to reinforce risk management.
The division’s main responsibilities are diverse,
including retaining safety in the workplace for employees
and visitors, protecting confidential information andassets of the business, attending to emergencies,

managing crises, planning for business continuity, andsupporting disaster recovery.
By foreseeing any possible risks and preventing themin advance, further safety and assurance in the businessenvironment are enabled.

Information security
Efforts toward information security are carried out basedon the Volvo Group’s “Security Policy.” Information on
security governance is being established in a mannerthat reflects this policy.
To be more specific, we manage and operate
electronic information at two places, namely, ourheadquarters and a highly earthquake-resistant data
center, to prevent our systems from ceasing due todisasters. We also have enhanced countermeasuresagainst electronic information leaks due to external
attacks. Moreover, we conduct regular educational
programs for our dealers across Japan to strengthen
information security.
In addition to these actions, UD Trucks follows the
Volvo Group’s “Privacy Policy” to ensure the proper
management and protection of personal information.

06

Feature1

Launch of
the New Heavy-duty Truck

So Customers
can Select the Most
Optimum Truckfor their Businesses

07Held Touch & Ride events

to introduce features of the all-new Quon.
In April 2017, UD Trucks launched the all-new heavy-duty Quon truck. In the same month, Touch & Ride events werestarted at nationwide circuits so that customers could confirm the performance of the new product at an early stage andmake use of it as a business solution.
In holding the Touch & Ride events, our staff confirmed the characteristic traits of the courses and important points indriving the courses in advance to offer a driving environment that was in line with the actual needs of drivers. Customers
were able to experience various types of performance, drivability, and maneuverability, including the various functions, aswell as the feeling of the newly-employed disc brakes when driving in the fuel-saving mode, the downhill auxiliary braking
performance, hill start on steep slopes, and slow-speed reverse driving in a setting where vehicles are drawn to
warehouse pits, all at location points suited to experience each situation. Additionally, five booths that introduced the fiveelements of, “drivability,” “fuel efficiency and environmental care,” “safety,” “productivity,” and “uptime,” respectively, were
set up in the venue, and employees from the Product Development and Aftermarket Divisions responded on the spot toenquiries regarding the technology or maintenance.
A lot of positive feedback was received from participating customers, such as “The engines are powerful, and you candrive the truck on uphill slopes without worrying about the load”* and “Gear changes are very smooth, and the disc brakefeeling is very good.” In the questionnaire survey conducted after the Touch & Ride event, the average score for the 11
criteria was high at 4.3 points or more (out of a maximum 5 points).
In 2017, we were able to have more than 10,000 customers experience the all-new Quon through the Touch & Ride
events at circuits nationwide and at region-respective Touch & Ride events with demo vehicles and exhibitions.
Similar efforts will be continued, and we hope to offer as many customers as possible an opportunity to experience
the all-new Quon and find their best single vehicle.
*Both trailer and cargo test driving vehicles were loaded with dummy weights.

Okayama International Circuit (Okayama
Prefecture)
Held in May. Customers from Chugoku, Shikoku,
and Kinki regions participated.

Fuji Speedway (Shizuoka Prefecture)

Sportsland SUGO (Miyagi Prefecture)

Held in April. Leveraged the characteristics of one of the best circuits in Japan, and prepared eight
experiential moments. Customers from many regions, from Hokkaido to Kyushu, participated.

Held in June and July. Customers from mainly
Kanto and Tohoku regions participated.

08

Launch of the evolved all-new Quon

UD Trucks’ all-new, heavy-duty truck Quon, launched in April 2017, comes with the highest fuel efficiency andenvironmental care in its class and is compliant with the latest Japanese exhaust gas regulations（2016 regulations). It
employs various cutting-edge technologies, including the electronically controlled automated manual transmission“ESCOT-VI” and the Traffic Eye Brake system (collision mitigation braking), to improve drivability and safety.
At the same time, the overall weight has been reduced by refining every component, and the payload of Perfect Quon
has increased up to 200 kg.
Furthermore, a semi-tractor* version of the all-new Quon was added in October, and the full line up was completedwith heavy-, medium-, and light-duty trucks. Thus, we offer a full selection of trucks to customers in the truck
transportation industry.
*Types of trucks that are connected to and pull trailers.

Advanced technologies
of Quon that “go the extra mile”

Under the concept of “innovation that puts people first,” the all-new Quon has significantly evolved by “going the extra
mile” in all five dimensions of trucks—drivability, fuel efficiency and environmental care, safety, productivity, and uptime.
UD Trucks has assertively offered opportunities to introduce these features of Quon, and by promoting them, thecompany contributes to realizing sustainability within the truck transportation industry.

Features of Quon

Drivability
The truck offers driving
environments where drivers
can concentrate from the
cockpit on driving
comfortably. It has also
pursued usability through theelectronically controlled
automated manualtransmission “ESCOT-VI,”
which has evolved in termsof maneuverability, and discbrakes installed throughout
the body.

Fuel efficiency
Safetyand environmental The truck also supports safe
driving by combining manycareadvanced systems such as
The “GH11 engine,” whichenables fuel efficiency,
power, and clean driving, has
good torque over a wide rev
range from low rev torque.
Also installed are advanced
fuel-saving driving support
functions such as Foretrack
anticipatory solutions thatuse GPS to look ahead or
the Fuel Coach that advises
on fuel-efficient driving.

Development oftrucks that respondto customer needs
on a global level09

the Traffic Eye Brake system(collision mitigation braking)and Driver Alert Support(device that alerts drivers
when irregularities in driving
are detected).

Productivity

UptimeEvery component has beenrefined to realize an overall
lighter vehicles. In addition,ease of loading andbodybuilding efficiency are
improved. Dry wing-bodyvariations are available in the
Perfect Quon range alongwith a refrigeration
wing-body.

We also pursued
maintenance aspects, suchas reduction in regularreplacement parts and longer
service intervals with genuine
parts, in addition to further
improving reliability anddurabililty of the vehicle.
Moreover, comprehensive
after-sales service, which
includes maintenance,service agreements, andlatest telematics services,
keeps customers’ vehicles inthe best possible condition.

In 2017, UD Trucks completed a full line-up of heavy-, medium-, andlight-duty trucks both inside and outside of Japan. In Japan, the heavy-duty
truck Quon, medium-duty truck Condor, and light-duty truck Kazet wereintroduced. In Thailand, Indonesia, Middle East, and other growth markets,the heavy-duty truck Quester, medium-duty truck Croner, and light-duty
truck Kuzer were introduced. The line-up meets various logistics needs
according to the characteristics of infrastructure and cargo in each market.

VoiceCustomer feedback

The impression of Quon wasenhanced by the performance ofthe disc brakes.

You don’t feel the weight of
the trailer even on uphill slopes.

The former Quon is still fully
used at our company, but
the most striking feature of
the all-new Quon isdefinitely the disc brakes,
which were newly installed
this time. I tried pressing on
Shuhei Shiiya
the brakes hard right before
President andthe first corner when the
Representative Director
truck started speeding, but it MARUSHU TRANSPORT
did not cause any of thatawkwardness that you usually get with drumbrakes. This on its own makes the image of Quon
even better. Also, I look forward to ESCOT-VI for
improved driving on snowy roads.

We have already had two
deliveries of single Quon.
Since we use prime movers
to transport containers, I
was looking forward to test
driving this time. What
stands out the most is that
Masashi Ishida
you can’t feel the weight ofRepresentative Director
the trailers even on uphill
Daimaru Unyu Co., Ltd.
slopes, and this makes
driving stress-free. I felt that
this had a lot to do with the ESCOT-VI and thepowerful GH11. The performance and feeling of
the disc brakes were good, and I look forward tothem contributing to safe and secure driving.

Feedback from employees

All the staff are united and offered an opportunity to experience Quon.

Senior Manager Hidetoshi Okabe (right)

Yuko Saito (left)

Promotion & Sales
Japan Vehicle Sales Division

We are in charge of planning and executing
events for customers and issuing newsletters as asupport function of Vehicle Sales at headquarters.
What we considered well in planning the Touch& Ride events was ensuring that customers
understand how the all-new Quon can meet theirchallenges and needs. To do this, we ensured theparticipation of sales promotion staff from eachregion from the planning stages, and we
coordinated with and collected information fromeach area and field and reviewed the program for
improvements each time, so that it aligned with theregional characteristics of participating customers.
At the same time, we were attentive to staff
education. It is up to the operational staff toensure safety in the venues, create a goodatmosphere, and thus satisfy the customers. The
phrase “putting people first” is included in theconcept of the all-new Quon. By asking the staff to“put customers first and let us fulfill our roles,” wetried to make sure that all the staff would attend all
Touch & Ride events with the same motivation.
Heavy-duty trucks had never been driven on
the main course at Fuji Speedway, and it was thebiggest challenge for us. We started out by
confirming if Quon could actually run on the Fuji
Speedway, and there were many unknown factors
during the preparation, even on the day of theevent. However, we were able to feel a big senseof achievement when we saw customers enjoying
the circuit run as a special opportunity and voicing
how they were satisfied with the event.
We will keep holding such events in the future
as one of our main activities. We would be very
pleased if the event becomes an opportunity forcustomers to not only confirm the vehicles forthemselves by actually experiencing them but also
learn about UD Trucks.

10

Feature

2

Improvement of Quality
in the Field“Going theExtra Mile”
in not only Products
but also Services

11Improvement of service quality
at workshops

UD Trucks seeks to not only improve the performance and quality of products but also enhance after-sales service sothat customers can continue using products after purchase in optimum conditions. The Aftermarket Division and Sales
Division coordinate to enhance operations at the workshops, called Customer Centers and to drive renewals of facilities.
Whether or not the next purchase will be made is dependent on the quality of the after-sales service. Based on thisunderstanding, UD Trucks strives to provide after-sales service that “goes the extra mile” and thus aims to improvecustomer satisfaction.

Promotion of the “Star Program”

UD Trucks deploys the “Star Program,” which provides after-sales service at three levels (★ one star, ★★ two stars, and★★★ three stars) at Customer Centers nationwide to strategically promote operational improvement and provide better
service to customers. In one-star activities, which center around the establishment of basic operational standards, daily
operations are based on 50 or more assessment criteria set for a total of 18 main activities, including accurate andprecise time recording by mechanics in their operations, quotations, and customer agreements; minimizing the number ofdays for issuance of invoices; and executing customer satisfaction surveys. Additionally, the certification of one star is
carried out by designated staff who conduct final audits to confirm and evaluate whether each activity meets thestandards. Furthermore, maintenance audits are conducted even after certification to maintain quality levels. Currently,
almost all Customer Centers have acquired one star and are striving for two stars.
We have begun deployment of this program to not only the maintain locations of our own direct dealers but also thelocations of independent sales companies. Establishing clear standards and visualizing progress have helped toenhance motivation levels among mechanics and all other after-sales service staff in their operations.

One-star certification

Final audit (interviews)

Final audit (at the workshop building)

Overview of the “Star Program”

One star

Understands the status quo of operations and customer needs,
and executes basic activities.

Two stars

Plans and executes action plans for operational improvements,from customer needs to profitability perspectives.

Three stars

Executes activities that are the best practices in each area.

12

Renewal of Customer Centers
As part of efforts to improve customer satisfaction, we have been renewing Customer Centers since 2014. We havecompleted renewals for 14 locations as of April 2018 under the following concepts: 1. Provision of comfort for customers
and communication of a unified brand image; 2. Improvement in the productivity of workshop buildings; and 3.
Improvement in employees’ work environment.

Workshop buildings
We improved their operational efficiency through LED lighting, which is about four times brighter than former lighting, as well as through daylighting roofs,
floor lifts, caterpillar lifts, and oil provision through reels. We also gave consideration to mitigation of the load on the environment and mechanics.

Customer waiting room

Facilities for employees

Air conditioning is provided in a relaxing room, and customers can waitwith comfort during maintenance of their vehicles. Waiting rooms for
women only are also prepared. Some Customer Centers have shower
rooms installed.

Clean and bright break rooms are used for meals, meetings, and otheropportunities for communication among employees. Locker rooms and largebaths are provided as well.

Promotion ofoperational
improvements in
Customer Centers
based on the resultsof customer
satisfaction surveys

13

In the Aftermarket Division, as part of the activities of the Star Program,surveys are conducted with customers who own UD Trucks’ vehicles toassess Customer Centers and investigate what customers prioritize whenselecting a workshop. The results are reflected in the action plans toimprove operations at Customer Centers.

Overview of the 2017 survey● Respondents: Customers who own UD
Trucks’ vehicles and have transactions
regarding maintenance or parts.
● Area: Throughout Japan● Survey method: Online survey● Response period: January to December
2017● Number of valid responses: 1,988

VoiceFully utilize new facilities to improve satisfaction of customers and employees.
Issues surfacing at the facilities while
the number of stored vehicles are increasing
The area where the Atsugi Customer Center islocated is an important point for transport, as this iswhere the Tomei Expressway, Metropolitan Inter-city
Expressway, and Odawara-Atsugi Road passthrough. In addition, with the extension of theMetropolitan Inter-city Expressway and the new
Tomei Expressway, many distribution-related facilities
are being constructed. While many of our customers’
business locations are within about a one-hourdriving distance from the Customer Center, manyother customers from outside the prefecture passing
through the expressways visit us, and the number ofstored vehicles are on the rise from the current 40 to
50 vehicles per day.
The history of the Atsugi Customer Center, which
was opened in 1965, is quite long. Since vehicles arelarger today than when the center first opened, thiscenter has a limited area of about 6,600m², while other
newly-built Customer Centers are about 9,900m².
Additionally, since it has been more than 50 years
since the facility opened, there were various issues
such as lack of energy-saving or eco-friendly facilities
and dim lighting due to low ceilings in the workshop
building. Thus, we had been developing a renewal plan
for about three years to improve such circumstances.

Customer Center could accommodate morecustomers. In addition to implementing and renewing
lifts, cranes, wheel dollies, and oil provision anddrainage systems, new layouts were devised so thatthe limited space was utilized efficiently to create aspace where employees could move about easily.
Furthermore, along with the renewal, operation plansof each employee and availability of the operation area
were visualized in detail. By matching the information
appropriately with the number of vehicles receiving
service, we were able to shorten times for operations
or waiting. Renewal of the reception and waiting
rooms was also evaluated highly, and the number ofstored vehicles increased by 115%, or 130% at peak
hours, compared with before the renewal.
Moreover, the attitude of employees toward workchanged greatly. Changes such as proactive revisionof one’s own working style and positive engagementwith the five slogans (organizing, tidying up, cleaning,cleanliness, and discipline) were observed. In theattitude survey conducted on the employees,
indicators measuring motivation levels were 10
points higher after renewal.
Currently, our Customer Center is aiming for twostars in the Star Program. We will be striving for further
satisfaction among customers and employees by
pursuing better service levels, operational efficiency,
and improvements in operational environments.

Renewal into a facility that is comfortable forboth customers and employees
In renewing the facility, discussions were held withapproximately 40 employees working at the Customer
Center on “what to do in order to realize a facility that is
comfortable for both customers and employees.” Wevisited Customer Centers in Tohoku to Kyushu regionsthat were already renewed, and we conducted researchon the facilities implemented, their layout, and their user
flow. Hence, basic concepts were developed from theperspectives of “plant facilities,” “work environment,”
and “corporate image,” and they were discussed at
length with relevant divisions at headquarters. The
center was eventually renewed in June 2017.
The biggest outcome of the renewal at this time
was that operational efficiency was improved and the

Nobuyuki Ohtsubo Head of Atsugi Customer Center

14

CSR activity report 1

Improving Customer Satisfaction
For continuous improvement of customer satisfaction, UD Trucks strives to capture the latent needs ofcustomers and the society, reflect them in its products and services, and help resolve customers’
challenges through various activities.

Basic approach to our customers

Major activities

Offering products and services that
respond to the needs of customers andthe society

Cross-function

At UD Trucks, we consider our founder Kenzo Adachi’s
words, “To make the trucks the world needs today,” asthe cornerstone of our business.
Accordingly, we seek to not only understand current
needs of customers and the society but also foresee
those needs in the future; thus, we continue offering
products and services that always meet these needs.
Moreover, we aim to improve customer satisfaction bylaunching high-quality products that excel in durability
and reliability, adopting advanced safety technologies
that respond to requirements of the society, andsupporting customers who use our products.

Securing and improving quality
Quality management policy

Pursuing “better quality” in all businessactivities
Continuously offering high levels of satisfaction forcustomers through products and services with first-classquality is one of the social responsibilities of manufacturers.
Under the Volvo Group’s quality policies, which are basedon the value of “customer focus,” UD Trucks ensures andimproves quality in all business activities from R&D,
production, and sales, to aftermarket services.

Quality management system

Acquiring the ISO9001 certification
UD Trucks has attained the ISO9001 certification, aframework of international standards on quality
management systems. Our Manufacturing Division and
Product Development Division acquired the ISO9001
certification in FY2002 and FY2016, respectively.
Through a plan, do, check, and act (PDCA) cycle, wewill continually advance improvements for the further
enhancement of quality.

Establish a new organization to promptly
attend to quality issues
To minimize the impact on customers when issues inquality occur, a cross-functional “Quality Action Group”
was established in 2017 to take charge of the processes
from identification of issues to execution of measures ina prompt and accurate manner.
This organization comprises the respective divisions
for R&D, production, and aftermarket, and it divides
roles between a number of teams: a team that confirms
quality information and devises measures on a daily
basis at headquarters, a specialized technical team that
visits Customer Centers and customers, and a team thatstays within regions and directly attends to incidents at
local sites. The teams collaborate so that issues areresolved in a functional and seamless way. By executing
activities that were formerly carried out by respective
divisions in a cross-functional way, relevant parties areable to share quality information in a timely manner,leverage it to attend to incidents efficiently, and thus
improve customer satisfaction.
Product Development Division

Quality management using a group-widecommon process
In the Product Development Division, to secure highquality in products that are developed in cross-functional
projects within the Volvo Group, we incorporate a processthat is consistent throughout the Volvo Group while adding
UD Trucks’ original assessment standards. We also set
checkpoints at each stage of development, where we
confirm achievement levels for each quality criterion, suchas performance, functionality, durability, and reliability. By
implementing this process, the quality was improved while
the time used for the development was shortened.
Manufacturing Division

Quality improvement through UD Trucks’
original quality management methods
In the Manufacturing Division, UD Trucks adopted an
original control method, and in accordance with thedefined process, production or quality nonconformancethat occurs during deliveries of parts or production15

processes is checked daily in an effort to secure theintended quality levels. UD Trucks’ quality management
method, which pursues further levels of improvement, isincorporated in other plants of the Volvo Group.
In addition, to increase awareness of quality among
employees, November of every year is designated as
the “Quality Month,” during which, every department
reconfirms processes and status of measures
implemented for past defects, as well as makes effort toelevate technology levels.
Aftermarket Division

Diverse initiatives for the improvement ofaftermarket service quality
For our customers’ peace of mind in driving our vehicles,
UD Trucks strives to ensure and improve aftermarket
service quality, mainly by polishing the skills of ourservice mechanics.

Efforts for maintenance improvement in respective
regions
We are improving the quality of maintenance services
through training programs for the staff of the Aftermarket
Division and international events to improve technicalskills. Such efforts were reinforced in 2017. Moreover, toensure that further attentive services can be provided inlight of regional differences in the traits and needs ofcustomers, various technical skill contests were held formechanics of respective regions.
In the Tohoku region, a service contest was held for all
mechanics in Customer Centers of the region with the aim
to enhance overall technical skills. Representatives who
passed the initial examinations participated in the final
matches held in November in the region as well ascompleted examinations for national mechanic certificationand vehicle knowledge and practical tests for the
diagnosis of vehicle issues and single unit maintenance.
Moreover, in the Kyushu region, a freshman contest
was held for young mechanics who were under the ageof 30 and had spent less than three years at thecompany, with the aim of developing younger employees.
Such efforts not only enhance mechanics’ individual
skills but also their motivation toward work and teamwork.

Training program to improve customers’ uptime
The Aftermarket Division has been hosting a training
program every year since 2013 to share the latest
product quality and technical support cases, thus
strengthen the knowledge of our mechanics. From 2016,
the program’s name was changed to “Uptime
Conference,” and it now focuses on the improvement of
uptime in customers’ vehicles.
The 2017 conference was held in December inTokyo, and about 350 mechanics and service parts
engineers from 166 dealers nationwide (at the time)
participated. At the conference, lectures on service
technical skills relating to engines and vehicles, sessions
on improvement in road support, workshops for prompt
parts provision, and visits to vehicle production lines at
Ageo Plant were held. Furthermore, active discussions
on roles that should be fulfilled by mechanics andservice parts engineers who interact with customers in
the field were held, providing an opportunity to confirm
company objectives—to improve customers’ uptime andenhance knowledge.

Aftermarket competition events on a global level
A total of 338 participants in 93 teams from Japan joined
one of the world’s largest technical competition events,“Volvo International Service Training Award (VISTA)
Championship 2017–2018,” which aims at improving
technical skills among employees involved in theaftermarket for Volvo Trucks and Buses.
In the competition, teams of two to four people
competed against one another, and 40 teams thatpassed initial examinations and regional semi-finals
advanced to the world finals held in 2018 in Curitiba,
Brazil. By engaging in various topics with team members
for several months, the competition provides anopportunity to not only mutually enhance knowledge andtechnical skills but also strengthen teamwork and teamspirit, which is challenging.

16

UD Trucks has also been holding the technical skills
contest “UD Gemba Challenge” since 2014. In the 2016
competition, 289 teams from various countries
participated, and 11 teams joined the final matches
held at UD Trucks’ headquarters. The Indonesian teamwon the championship. From Japan, four teams
advanced to the finals, and the top team performed wellin second place.

Number of cases notified in Japan(each year during the January‒December period)
2015

2016

2017

UD
TrucksVolvo
TrucksUD
TrucksVolvo
TrucksUD
TrucksVolvo
TrucksRecall

4

2

4

3

6

1

Improvement
campaigns

0

1

0

2

0

1

ServiceCampaigns

1

1

4

6

5

3

Improvement of product safety
Safety management policy

Striving to be a leading company
in safe transport solutions
Disclosure of information on product quality

Pursuit of prompt information disclosure
In an event of defects that may impact customer safetyor the environment, UD Trucks exercises prompt
information disclosure in accordance with the guidelines
provided by the Ministry of Land, Infrastructure,
Transport and Tourism of Japan.

Under the Volvo Group’s Safety Policy, which calls toeliminate any accidents caused by our products, UD
Trucks engages in continued efforts for improvement ofsafety. We focus on furthering our knowledge on how
our customers use our trucks and evaluating potential
safety issues systematically throughout the developmentof products and services. We also strive to provide
products and services equipped with safety features thatcater to customer and market needs as well as
requirements of the given transport infrastructure.

Main safety features of the all-new Quon
Active Safety—Predicting risks for driver safety

Basic Safety—Ensuring safe driving by reducing driver fatigue• Traffic Eye Brake (brake to reduce collision damage)
Dual monitoring with a millimeter-wave radar and camera dramatically
improves detection of the vehicle ahead. If the possibility of collision isdetected, the driver is quickly warned. If the vehicle reaches a distance
where collision is possible, brakes are applied automatically at the sametime to avoid collision or reduce any damage due to collision. This was
adopted ahead of the scheduled reinforcement of braking requirements
for collision damage reduction (AEBS01 series) in November 2019.

• Disc Brakes
These brakes provide reliable braking performance while hauling cargoeven on long descents or on wet pavement.

Brake!!

Warning tone

*Image of operations

Application of brakes• LDWS (Lane Departure Warning System)
The camera monitors the traffic lanes on both sides, and if the driverunintentionally deviates from the lane when at the speed of 60 km/h orabove, it activates warning indicators and buzzers.

17• EBS (Electronic Brake System)
It stabilizes braking performance through the combination of disc brakes,
ABS (Anti-lock Brake System), and ASR (Anti-slip Regulation).

Passive Safety—Minimizing damage• SAFES CABIN
The highly rigid cab loaded with safety features improves collision safety
for the driver. The vehicle is equipped with FUPD/RUPD (Front andRear Underrun Protection Device) that helps reduce damage to othervehicles and their drivers.

Major activities

Customer support

Development and use of safety technologies

Basic approach to customer support

Implementation of advanced safety
technologies
In response to the increasing societal and customer
needs for safety, we engage in the development andpermeation of advanced safety technologies.
In the heavy-duty truck Quon, which was launched in
April 2017, several advanced safety features delivered
enhancements on both active and passive safety. In
addition to supporting safe driving for our customers, UD
Trucks aims to secure safety for other surrounding road
users at the same time.

Safe-driving seminar

Providing practical programs that suitcustomer needs
We host “Safe-driving seminars” to further encourage
safe driving of our trucks.
In response to requests from customers, we offer
programs on selected topics such as “safety managementin transportation,” “hazards of drunk-driving,” “blind spotsof trucks,” “traffic accident case studies and preventive
measures,” “risk avoidance,” and “human error,” and we
combine lectures and hands-on exercises so that theacquired knowledge can be applied quickly.
To maximize effectiveness of the seminars, wecreatively use tools such as images taken from drive
recorders mounted on vehicles involved in actual
accidents and visually recreate the accidents so ourcustomers can virtually experience them and own thesafety issues.
In 2017, a total of 3,668 people participated in 137
sessions (3,415 people through 127 sessions in 2016).
We conducted a survey after the program and asked
participants for their feedback on the content, materials
provided, lecturers, and time allocation in order to refine
the program and materials.

Contributing to customers’ businesses
through support that resolves issues
For UD Trucks to be chosen by customers as business
partners, we not only provide products and services but
also seek to resolve challenges that customers face andengage in activities that contribute to customers’ profitsand business operations.

Major activities
Touch & Ride events for female drivers.

Supporting the “Truck Girl Promotion
Project”
Since the shortage of truck drivers is becoming a social
issue, the Ministry of Land, Infrastructure and Transportin Japan is developing the “Truck Girl Promotion
Project,” which promotes women who aspire to becometruck drivers.
As part of this effort, UD Trucks invited eight female
drivers to the UD Experience Center located in theheadquarters premises in September 2017 and held aTouch & Ride event for the all-new Quon as well as a
discussion event. While we received a lot of positive
feedback on the drivability of the all-new Quon, we also
received suggestions such as, “The distance between
the steps should be shortened” and “I would like more
space for storage.” Also, in the discussions, the womenactively exchanged ideas and information on work
environments that are friendly to women, issues inrealizing such environments, and female-specificmoments of surprises or important points in safe driving,based on their own individual experiences.

18

This activity provided a precious opportunity for thefemale drivers to mingle, and the participants voiced
anticipation for the coming second round. We willcontinue our customer-orientated activities to help resolve
the various issues of the logistics industry going forward.
Eco-driving seminar

Support for fuel efficiency and CO2
emission reduction“Eco-driving seminars” have been held for drivers since2007. The seminar aims to provide useful knowledge
and practical skills for green driving by using in-operation
trucks to learn maneuvers and speed-reduction
techniques. The seminar, which utilizes the UD
Information Service (UDIS)*, was especially popular as it
helped to objectively understand the tendencies ofdrivers since it evaluated driving according to criteriasuch as gear change and speed, thus contributing to thedevelopment of effective measures.
In 2017, we held sessions in 85 locations nationwide
for 1,213 participants (97 locations for 1,303 participantsin 2016). The seminar was backed by survey data, whichindicated a 14.9% improvement in fuel efficiency after
the program. Thus, the seminar supports our customers
in improving fuel efficiency and cutting CO2 emissions.
*An original service by UD Trucks in which the installed multi-purpose
screens collect real-time information on each vehicle regarding location,
fuel-efficiency, and engine or other conditions of the vehicle (oilpressure, fluid temperature, etc.). The information is analyzed andprovided as reports on fuel-efficiency and operation rates.

UD Extra Mile Challenge

Contribution to improvement of truck
drivers’ driving skills
For our customers to fully utilize UD Trucks’ products
and services, we host a driving skill competition called“UD Extra Mile Challenge” for truck drivers in worldwide
markets in which we operate our business.
In 2017, the global finals of the “UD Extra Mile
Challenge 2017” were held at UD Trucks’ headquarters
in November. A total of 180 drivers who passed the initialregional matches as well as supporters participated.
The 2017 competition was the first time that both theheavy-duty truck Quon for mature markets and theheavy-duty truck Quester for growth markets were used.
The Singaporean team won in the Quon category, while
the South African team won in the Quester category.

19

We received feedback from the winning teams that“UD Extra Mile Challenge program was not only acompetition but also included elements of training andwas thus meaningful.”
UD Trucks aims to support the acquisition ofknowledge and technical skills by drivers and,furthermore, to provide solutions for business operations
and operational management of logistics companies
through this competition.

Customer contact point

Reflection of customer feedback in productimprovement and business activities
We provide our customers with a toll-free customer
contact point, where we respond to calls regarding
inquiries, opinions, and requests from our customers.
We have developed manuals for each possible question
to facilitate prompt and smooth responses. In May 2016,
we reviewed our internal processes to provide further
prompt and appropriate support for inquiries regarding
vehicle troubles.
Moreover, at UD Trucks, customer feedback
collected at the customer contact point is shared with
relevant departments and is reflected in productimprovement and other business activities. The total
number of calls we received were 5,930 and 4,691 in2016 and 2017, respectively.

CSR activity report 2

Better Collaborative Relationships
with Business Partners
Suppliers and private dealers are invaluable partners indispensable for our business. We strive to develop
and enhance our relationships with them, respecting the Volvo Group’s policies and customer satisfaction.

Basic approach to our suppliers

Purchasing as part of
the CSR execution process

Measures for high-risk countries

Promotion of efforts throughthe “Sustainable Purchasing Program”

By providing not only raw materials and facilities but also
services and consumables necessary in daily work, oursuppliers play an important role in UD Trucksʼ businessactivities. To develop appropriate relationships with
suppliers worldwide, we carry out purchasing activities ina manner that is compliant with the Volvo Group’spurchasing policies.
Recognizing purchasing activities as part of our CSR
processes, the Volvo Group engages in “responsible
purchasing” through improvement of ethical awarenessin the supply chain and in the management of risks, andaims to contribute to realizing a sustainable society.
Therefore, we ask our suppliers to comply with the lawsof the respective countries and the “Volvo Group Code of
Conduct” to respect international agreements such as
the UN Global Compact and acquire ISO14001 or othercertifications by other equivalent third parties to ensure
reduction of the environmental load.
In addition, the Volvo Group requests all Tier 1
suppliers to engage in equivalent practices andpromulgate the purchasing policy to Tier 2 and Tier 3
suppliers through them.

The Volvo Group renewed the “Sustainable Purchasing
Program” in 2017. This program comprises various tools
to evaluate risks regarding sustainability and to develop
dialogues, transparency, and trust with suppliers. It
promotes focused efforts in areas with high risk ofsignificant harm to human rights and the environment,
for example, conflict minerals.
As part of the activities to understand the impact andpotential of the supply chain in high-risk countries, theGroup’s representatives, including the leader
responsible for sustainability in the Purchasing Division,
visited the Marikana mine in South Africa in August.
Progress on labor conditions, which was an issueduring the previous visit, was confirmed with theprimary producer of platinum, while furthering theunderstanding of South African politics, economy, andsocial circumstances.

Major activities

UD Trucks supplies products and services to ourcustomers through our own dealers as well as private
dealers, including six companies with a total of 32
distribution sites. While respecting locally rooted
business activities, we share the common goal of
improving customer satisfaction. We support theacquirement of higher skills and latest knowledge byoffering them the same opportunities in training or otherevents that we provide to our own dealers.

Development/deployment of training programsfor suppliers

Reinforcement of sustainability by
the entire industry
The Volvo Group developed a training program in 2017to promote the understanding of sustainability amongsuppliers along with 10 global automobile manufacturers
who participate in “Drive Sustainability,” which isfacilitated by CSR Europe*.
The purpose of this collaboration is to advancecommon efforts in the automobile industry and to
reinforce sustainability in the industry’s overall supply
chain by integrating elements of sustainability throughout
the procurement process. We have thus far deployed thetraining program to suppliers in China, Hungary, India,
Italy, Mexico, Spain, and Thailand.
*An association of top companies engaging in the promotion andeducation of the CSR concept. Headquarters in Brussels.

Basic approach to private dealers

Partners that seek improvement incustomer satisfaction

Major activities
Technical training

Offering opportunities to improve
technical skills
We proactively support aftermarket staff members in
improving their technical skills. Forty people fromindependent dealers participated in the skill seminar,“Uptime Conference 2017,” while 9 teams of 36 people
joined UD Trucks’ previous international training event“UD Gemba Challenge 2016.”

20

CSR activity report 3

Allowing Employees to Perform totheir Full Potential
To recruit, develop, and appropriately allocate competent talent that can lead the business with a global
mind-set, we design and operate a human resources system that leverages diverse individual capabilities
and promotes efforts to support flexible working styles.

Basic approach to human resource management

Fostering “global andhigh-performing talent”
To pursue a business that does not limit its vision only to
Japan but rather embraces the global arena, UD Trucks
regards employees who are “globally minded and highperforming” as ideal talent. We seek to hire highly
talented people and focus on developing well-structured
training systems and fair evaluation systems.
In designing and operating these systems, we placeemphasis on the values of “respect for the individual,”“proactiveness,” “diversity and cross-functionality,”“teamwork,” “passion and accountability,” and “opendialogue.” At the same time, in light of the employee
awareness survey results, we ensure that our initiatives
develop a corporate culture appropriate for UD Trucks
and provide work environments where all employees canfully exert their capabilities.

Major activities
Diversity and inclusion (D&I) management

Promotion of understanding forand penetration of D&I
UD Trucks respects differences among employees,
based on the philosophy that diversity is essential for
raising corporate performance. We also seek
sustainable growth by developing an environment where
the diversity of personnel is enhanced and all individuals
can exert their capabilities to the fullest potential. In an
employee attitude survey, we evaluate diversity*1 mainly
in terms of the parameters of gender, nationality, andage, while the penetration of inclusion*2 is measured
through questions such as whether individuals feelneeded as part of their teams.
In 2017, on the “International Women’s Day,” we took
the opportunity to interview female employees in various
positions and distributed articles on the intranet topromote the understanding and penetration of “gender
diversity.” We introduced the voices of employees, suchas managers, mechanics, managers of foreign
nationalities, and those who returned from childcare
leave, in a series of articles.
In January, we invited the former CEO of H&M inJapan Christine Edman to present her experiences tomale and female employees who want to become leaders.
Furthermore, “D&I Week,” which was started in 2014
in an effort to educate employees on D&I, has been

21

continued as anestablished activity,and employees haveparticipated in eventswith various themes
such as “Materializing
Innovation throughPromotion of D&I.”

D&I Week*1: Diversity refers to the state of a group of people who have different
backgrounds and perspectives, such as gender, nationality, racial
background, age, sexuality, religion, political orientation,socioeconomic status, and physical abilities.
*2: Inclusion refers to ensuring that people feel respected, recognized,
and supported by others as well as feel a sense of involvement.

Recruitment and appointments

Promotion of recruitment based on personal
merits and business strategies andcontributions from female employees
We conduct our recruitment activities while bearing in mind
individual interest, preferences, and abilities as well as thecompany’s mid-/long-term strategies. In FY2017, werecruited 103 new graduates and 147 mid-career talents.
We also focus on driving the advancement of female
employees, and there are currently 49 female managers
in various departments. Furthermore, to offer equal
opportunities to employees, as a general rule, newpersonnel for all open positions are selected fromcandidates who applied through our job posting system.
Number of employees (as of end of December 2017)
GenderNumber of employees

Female

422

7.3%

Male

5,367

92.7%

Total

5,789

100.0%

Ratio

Number of nationalities (2017): 26 countries

Australia, Belgium, Brazil, Canada, China, France, Germany, India, Indonesia, Ireland,
Japan, Korea, Malaysia, Mexico, Nepal, Peru, South Africa, Sri Lanka, Sweden, Switzerland,
Thailand, the Philippines, Turkey, Uruguay, USA, Vietnam

Talent development

Focus on building environments that
support capability development
In addition to improving capabilities necessary for thecurrent work, we also focus on developing knowledge
and capabilities which will become critical in the future.

Additionally, a “Talent Development Promotion
Committee” was established in 2017, and specificmeasures are being contemplated.
As part of these efforts, a new training program
management system was implemented in October. Thissystem aggregates various training programs offered by
the company, and employees can easily search andapply for these programs as well as obtain confirmed
records of their participation.
Furthermore, training facilities are being improved,
and a training center near the headquarters was opened
in December. In addition to rooms for lectures, two areasfor vehicle training and two rooms for unit training areprovided to enable new product training for dealers andtechnical training for mechanics.

Evaluation and compensation

Semi-annual evaluations for
12-month objectives
All employees set their annual objectives every year andevaluate their progress with their supervisorssemi-annually. We also run a remuneration system
based on personal performance on the set objectives,
while considering the team/company performance.

Employee attitude survey

Improve the scores through dialogues
We conduct an employee attitude survey every two years
with the intention of promoting better communication with
employees and fostering active awareness for business
management. In order to improve the score, we areengaged in vitalizing communication throughout the year,
such as town hall meetings, holding “Fika*,” and timely
information sharing on the intranet.
*A casual gathering practiced in Sweden, where people enjoy casual
dialogues over tea breaks.

Work-life balance

Striving toward practical systems
To ensure our employees can efficiently manage both theirwork and personal lives, we have developed various systems
and policies and support a fulfilling work-life balance.

Major systems and policies to support work-lifebalance• Childcare leave system• Nursing care leave system• Work-from-home system (work-at-home opportunities
used as needed or with limitations on duration)• Flex-time system without core hours• Policies on respect for individuals in the workplace(prevention of harassment)
Activities
to encourage leaving work at defined hours•

Health and safety at work

Focus on developing safe workplaceenvironments and enhancing
employee health
To realize a workplace where employees can work ina healthy and safe manner, we continuously engage
in improvements.
Safety improvement by separating spaces for people
and vehicles
To retain safety for employees and children attending
schools, rules for driving within the properties or aroundthe main gates were established in 2017 at ourheadquarters and plant, with separate lanes for people
and vehicles.
Internal fitness room opened
As part of efforts to encourage employee health, afitness room was opened at our headquarters. In
addition to various machines, lockers and shower rooms
were installed, and employees can casually use thefacility during lunch
breaks or before andafter work.
Moreover, programs
to relieve stiff shoulders
or back pain, yoga
classes, and othersuch events are being
Fitness room
held and promoted.
Conducting stress check tests
To prevent mental health issues, we conduct stresscheck tests on employees. Depending on the results, inaddition to encouraging meetings with physicians andcounselors, we review employees’ assigned duties,
based on advice from physicians.

22CSR activity report 4

As a Member of Society
UD Trucks’ business is supported by not only customers and business partners but also many otherpeople in society. We work on our society engagement activities to fulfill our responsibility as a corporate
citizen to develop a relationship of trust with society.

Basic approach to society engagement activities

We make our business resources
available to society
UD Trucks harnesses its expertise, talent, facilities andequipment, functions, and other business resources as it
works on its society engagement activities. We take aclose look at diverse needs and challenges that our
stakeholders (e.g., local communities where our offices
are located and automobile-related industries) arepressed to address, and through activities designed tocreate shared value, we aim to build good relationships
with them to help pave the way to a sustainable society.

Major activities
Offering traffic safety seminars for elementary
school students

Providing opportunities to learn about
safety with heavy-duty trucks
Saitama Prefecture, where UD Trucks’ headquarters is
located, has continuously ranked among the worst
prefectures* as regards the number of fatal roadaccidents caused by commercial trucks. In aiming tocontribute to the prevention of traffic accidents, which isone of the social responsibilities of a truck manufacturer,
we have conducted traffic safety seminars forelementary school children in Ageo City since 2016. This
program helps participants learn about safe behavior
while experiencing blind spots and the difference
between tracks followed by the front and rear wheels
when turning with actual heavy-duty trucks. In 2016 and2017, about 790 children participated in the program,and a total of about 90 employees were involved.
As the employees received cards of gratitude fromthe elementary school children and high evaluations
from chaperoning teachers afterward, these events
became very rewarding for our employees. We plan toexpand the scale of such events in the future, forexample, by increasing their frequency.
Also, we hold traffic safety seminars for children in thecommunity at Customer
Centers nationwide.
*Source: Statistical data from theJapan Trucking Association.
Light-duty vehicles are notincluded.

23

Internet training course

Contributing to expansion of access to
information for the elderly
While the society is increasingly aging, the volume of
information on the Internet is expanding. To improve thequality of life of senior generations who are not used to
IT tools, we have been conducting Internet training
courses for the elderly using meeting rooms at theheadquarters since 2016.
Each time, lectures and practical training are offered
to 20 participants aged 60 and above who live in Ageo
City and are new to personal computers, on various
topics from basic knowledge on computers totransportation route searches and other such practicalusages in everyday life.
This program is run mainly by employees from the IT
Division, and we strive to operate in a manner that is easy
to understand, using original textbooks and holding
rehearsals. Additionally, one employee is available for every
two to three participants to support them while observing
how far the content is being understood. We have received
feedback from participants saying,“It was taught in a way that wasvery easy to understand,” “The
one-on-one instructions were very
good,” and “It was a relief that I wasable to ask questions on the spot.”
Reinforcement of collaboration with schools

Supporting the development of talent for
the future automobile industry
Automobile mechanics engaged in maintaining
automobiles play an important role in maintaining a safe
automobile society as well as stable operation of
distribution. However, the workforce has been
decreasing in recent years due to declining birthrates
and the younger generation showing less interest incars, resulting in an issue for not only the automobile
industry but also the society. UD Trucks supports thedevelopment of competent personnel by collaboratingwith specialized schools for automobile mechanics andtechnical high schools nationwide.
Donation of an engine
Graduates from Saitama Institute of Automotive
Technology, which trains automobile mechanics, havejoined UD Trucks and are working at our branches andCustomer Centers. The school has recently beenemphasizing a curriculum on large automobiles andenhancing facilities and vehicles for practical training.
We have donated an engine installed in standard trucks(load capacity class of 8 tons) to the school in October
2017 for use in training with large vehicles.
Technical training
UD Trucks supports the acquisition of further practicalknowledge by youths who aspire to become automobile
mechanics while communicating the appeal of trucks.
Since 2011, the Tohoku region has been conducting
training programs for students and teachers from
specialized schools for automobile mechanics to learn
about new truck technologies and arranging visits to truck
workshops. In May 2017, for four days, we invited teachersand 289 students from Kadan Automotive School to visit
the Sendai Customer Center, where was renewed the year
before. They visited the new workshop building equippedwith the latest facilities for the maintenance/shipment ofparts and participated in a training program on the
structure of the heavy-duty truck “Quon.”
The curriculum at the school centers aroundpassenger vehicles, and this was the first time many
students experienced trucks and their components.
While they were surprised at the trucks’ size, students’image of trucks and truck maintenance seemed to havechanged on learning about the high productivity ofworkshops sustained by the structure of electronicallycontrolled engines and transmissions for heavy-duty
trucks, the clutter-free work environment, and latest
facilities such as automatic forklifts. We received
feedback from students on how they were “surprised thatthe workshop was clutter-free and bright” and how theyfelt that “large vehicle workshop was completely different
from what was imagined.”
We offer on-site classes to specialized schools forautomobile mechanics in other regions as well asinternships to technical high school students to provide
them opportunities to learn
about truck maintenance.
These activities are carriedout nationwide, and we willassertively engage in themgoing forward as well.

with global competence that are capable of working ininternational settings. One such opportunity is the
Academic Partner Program organized in collaboration
with 11 universities in five countries: China, France,
Japan, Sweden, and USA.
In Japan, we entered into a three-year partnershipwith Sophia University in 2014, and we have offered
four-week internships, scholarship support for research
projects generated by students, and “Global Business”
seminars in which UD Trucks’ employees lecture on theirareas of expertise.
Our seminar was chosen as one of the top four among
252 classes by the university’s Good Practice Selection
Committee, based on student survey results in 2017 oncommon classes offered to all students. Additionally, ourefforts were evaluated highly, and the partnership was
renewed for another three years in April 2017.

Ageo City Marathon/Half Marathon

UD Trucks supports the success ofmarathons as a local company
The Annual Ageo City Marathon and Half Marathon heldin fall is the city’s major event that has been supported
by residents for many years; more than 8,000 runners
participate in the event each year.
As a company based in Ageo, UD Trucks has
sponsored the event since 2013 to support its success.
During the 30th anniversary event in November 2017, in
addition to the 1,600 original neck warmers gifted tochildren every year, toys shaped like the heavy-duty
truck “Quon” and original candies were distributed.
Approximately 100 UD Trucks’ employees participatedas runners as well.

Industry-academia collaboration program with
Sophia University

Our contributions to foster global talent
The Volvo Group globally offers students a wide range oflearning opportunities as part of its efforts to foster talent24

CSR activity report 5

Our Environmental Management
Based on our environmental programs in line with the Volvo Group’s policy and medium-/long-term plans forenvironmental management/conservation, UD Trucks is dedicated to contributing toward a sustainable
society through improvement of the products’ environmental performance and reduction of environmentalload from our business activities.
Environmental management policy

Environmental management system organization

Four programs as our contributions toa sustainable society
The Volvo Group has taken environmental measures overmany years in accordance with its Environmental Policy.
UD Trucks also follows the policy to ensure a “holistic
view,” “continual improvement,” “development oftechnologies,” and “resource efficiency” as componentsof our environmental program, paving the way toward asustainable society.
Environmental program

Environmental Chief
Executive Officer

Manufacturing
Division
Environmental
Chief Manager

Product
Development
Division
Environmental
Chief Manager

Sales Division
Environmental
Chief Manager

Environmental
Manager

Environmental
Manager

Environmental
Manager

Holistic View
Practices to reduce the impact on the environment from our
products, business activities, and services with a comprehensive
view of the product life cycle
Continual Improvement
Initiatives pursued by employees in their work in a dedicated,
continued effort
Technical Development
Proactive and innovative research and development to meet andsurpass expectations of the customers and society
Resource Efficiency
Practices leading to economizing the use of natural resources andreducing waste generation

Environmental management system organization

Committed to company-wide
environmental plans through“structural environmental management”
UD Trucks operates an “environmental management
organization” with members that include therepresentative of the executive team as theenvironmental CEO and environmental chief managers
appointed from all divisions. This organization is
responsible for formulating companywide
medium-/long-term plans regarding environmental
management and conservation and for deliberating andapproving important agendas.
Each chief manager is supported by environmental
officers and a management/execution team and pursues
various activities in accordance with ISO14001, aninternational standard for environmental management
systems, as well as the company’s environmental plans.

25

Progress in obtaining ISO14001 certification

Operating the environmental
management system by
the company as a whole
UD Trucks is certified with ISO14001. Starting withcertification of the Ageo Plant in FY1998, respectiveplants and affiliated companies were subsequently
certified by FY2017.
Currently, we aim to achieve the objectives andtargets specified in the environmental action plans by
operating the environmental management system by thecompany as a whole.

This is to certify that the management system of:

UD Trucks Corporation
Main site: 1-1, Ageo-Shi, Saitama, JP-362-8523 Japan (日本)
has been registered by Intertek as conforming to the requirements of

ISO 14001:2015

Certificate Number:
0049754-03
Initial Certification Date:
26 February 1999
Date of Certification Decision:
27 July 2018
Certificate Expiry Date:
31 March 2021

The management system is applicable to:
Design, development, manufacture and service of trucks and related
products.

Thomas Andersson

MD, Business Assurance Nordics
Intertek Certification AB
P.O. Box 1103, SE-164 22 Kista, Sweden

In the issuance of this certificate, Intertek assumes no liability to any party other than to the Client, and then only in accordance with the agreed upon Certification
Agreement. This certificate’s validity is subject to the organization maintaining their system in accordance with Intertek’s requirements for systems certification.
Validity may be confirmed via email at certificate.validation@intertek.com or by scanning the code to the right with a smartphone.
The certificate remains the property of Intertek, to whom it must be returned upon request.

ISO14001 certification

Impact of business activities on the environment

Internal/external audits on the environmental
management system

Pursuing the effective use of resources
and minimizing the environmental load
at all stages of the product life cycle

Regular evaluation of operational
statuses and effectivenessTo ensure appropriate operation of the environmental
management system, we conduct an annual internal
audit based on company regulations. The internal audits
are conducted by a team of qualified audit committee
members who investigate and assess the operational
state of the environmental management system as wellas its compliance with the internal standards andrelevant environmental laws and regulations.
Furthermore, an audit by external institutions isconducted every year. In May 2018, an audit to transition
to the ISO14001:2015 revision was conducted, and thetransition was completed by the end of August.

UD Trucks analyzes environmental loads at all stages ofthe product life cycle, beginning from R&D and design
to waste disposal and recycling, thereby offering
environmentally conscious products and pursuing theeffective use of resources and minimizing
environmental loads.

Improvement in product environmental performance

Striving to develop technologies thatenhance environmental performance
UD Trucks is dedicated to comprehensive environmental
protection through the development of technologies toreduce fuel consumption and filter exhaust gases, as well
as by controlling environmentally hazardous materials.

Material flow
EnergyInput
1. Development

2. Purchasing

and design

Development oftechnologies

materials andcomponents●Reduction of exhaust-gas
emissions●Fuel-efficiency improvement●Reduction ofenvironmental load
●Reduction of noise pollution●Enhancement ofrecycling capability

OutputTransportationGreenpurchasing/energy-efficienttransport

CO2
PM/NOxMaterial
components

Resource
energyResource
energyEnergyWater/
electricity/oil

Tire exchange/
fuelPower/fuel for
facilities/equipment

4. Customer use

5. Waste disposal/

3. Production

Press/heat treatment/machining/
paint work/assembly/inspection

Medium-/heavy-duty truck engines
and components
Reduction of hazardous substances/saving of resources and energy/
facility maintenance, etc.

CO2
NOx
SOx
Dust
Odor

Effluent

Waste

Noise
Vibration

Driving of trucks
Energy-efficientdriving

CO2
PM/NOxWaste(disposed tires, etc.)

Noise/Vibration

recycling

Disassembly/
sorting
Reuse/recycling/
waste collection
and treatment

Waste
ASR
Airbag
CFC

The environmental impact from trucks throughout their lifecycle is mostly attributed to the emissions of CO2 and exhaust gases (PM and NOx) during their use.

26

Saving energy and preventing global warming

UD Trucks’ improvement on fuel efficiency

Developing technologies toenhance fuel efficiency

105

Trucks’ fuel consumption is both a significant burden
on business management costs and a major cause of
CO2 emissions.
For this reason, UD Trucks considers fuel efficiency
to be the top agenda in its environmental activities andhas been delivering improvements over many years. In
Japan, the Heavy-Duty Vehicle Fuel Efficiency
Standards 2015 were implemented, which prescribed
the targets of fuel efficiency by vehicle load category.
During FY2017, more than 98% of the entire units soldmet the target fuel efficiency, and we have beenachieving our company targets on the average fuelefficiency score since 2012.
In addition to efforts in improving the fuel efficiency of
our vehicles, we continue the nationwide initiative of“Eco-driving Seminars,” wherein we provide truck drivers
with lectures and practices on green driving.
Technologies enhancing fuel efficiency
We have achieved 105% or more success in about 90%of the main models of our heavy-duty truck Quon against
the target set by the Heavy-Duty Vehicle Fuel Efficiency
Standards 2015. This was made possible by actively
introducing various advanced technologies to enhancefuel efficiency, such as improvements in drive system
functions in engines and transmissions and granular
control of running conditions.

Fuel efficiency achievement rate (%)

104
103
102
101
100
99
98
97

2011

2012

2013

2014

2015

2016

2017
(fiscal year)*Figures are a weighted harmonic mean of net sales by units for medium-/heavy-duty
trucks against the 2015 figure as 100%.

Control of chemical substances

Thorough control of chemicals usedin products
In compliance with laws and regulations, as well as with
self-regulated industrial standards about manufacture,import, management, environmentally aware design, andrecycling of chemical substances, we strive to manage
the chemicals we use in our products based on the
Global Automotive Declarable Substance List (GADSL).
Controlling chemical substances
Development/design phase• Verify the use of chemical substances in each process,including at suppliers.

• Register data with the International Material Data
Major technologies applied in heavy-duty trucks• Fuel Coach (as a guide for energy-efficient driving)• Foretrack (a function to memorize where slopes are
VehicleEnginePower
trainsystem27

for anticipatory control)• Reduced air resistance (e.g., an air dam integrated
with the front bumper and a newly designed wind
deflector)• Changed fuel injection system• Changed piston combustion chamber shape• Changed shape of the induction system• Variable speed water pump
• ESCOT Roll (for controlled slowing down during
coasting)• Acceleration limiter (for controlling sudden
acceleration)• Soft cruise (for controlling speed)

System (IMDS*1) as necessary.

Production phase• Conduct annual registration and create reports basedon the Pollutant Release and Transfer Register(PRTR) system*2.
• Implement internal standards and promote substitutionof hazardous substances.
• Properly adapt to legal changes.
*1 Materials database jointly managed by automobile manufacturers
across the world for environmental conservation.
*2 A law for managing and controlling the emissions of speciallydesignated chemical substances into the environment.

Reducing environmental load in business activities

Dedicated to energy conservation, global
warming prevention, and waste reduction
UD Trucks is proactively driving effort, such as reducing
CO2 emissions through the discovery of energy-saving
items, horizontally developing effective activities,
reducing waste disposal together with dealers,
expanding green areas in headquarters and the Ageo
Plant, and reducing environmental risks.
Energy saving and prevention of global warming

Company-wide initiative to reduce
CO2 emissions
The Volvo Group is the first automotive manufacturer
who joined the WWF Climate Savers Program* in 2011.
The Group set its own target to reduce CO2 emissions
from the Group factories by 12% from the 2008 figure by
2014. In 2013, the Group had already exceeded theemissions-reduction target (20%).
Continuing on this result, a new target was set in2015 to reduce a further 8% from the 2013 emissions by
2020, and we are still boosting our activities. In an effort
to align with this reduction target, UD Trucks also
arranges specific action items and plans throughdiscussions at our Energy Saving Promotion Council,
which is membered by representatives of each division.
Our 2013 target was to reduce CO2 emissions by
39% from 1990, and we achieved the target by a large
margin by achieving 60.7% reduction. We will continue
our diligent efforts in such reduction to achieve the goalin 2020, while accounting for emissions caused by the
future growth in production.
*A program for reducing greenhousegas emissions through the initiative of
the WWF in partnership with world
businesses.

waste sorting management for all dealers since 2014.
Each dealer has installed dedicated facilities according tothese standards and sorts waste material at a granularlevel. Moreover, we promote reuse at each dealer’s
location, such as through returnable packaging material ofservice parts delivered to them.
At the R&D stage, we design our products while
keeping in mind the efficient use of resources and easy
disassembling, for example, the three-way split bumpers
or easily disassembled headlamps for which lenses andLED units can be easily exchanged in single units, andfenders made from recycled material.
At the production stage, we work on reducing andrecycling waste in order to minimize the final volume ofwaste disposal. In FY2017, we reduced the final volume
of waste by 99.7% compared with FY1990. We also
keep our recycling rate at over 99% (zero emission)across the company.
UD Trucks entered into a consulting agreement with acompany specialized in waste disposal processing from
April 2015 to enhance its waste management system.
We ensure compliance with waste management byselecting highly reliable companies for waste disposal,
submitting required notifications to the government,
managing business forms (manifestos), aggregating thevolume of waste disposal, and other efforts.
Expansion of green areas

Green zone reclaimed at the site of
the old headquarters building
At our headquarters/Ageo Plant, the maintenance of thebuilding that began in 2016 has been completed, andgreen areas have been expanded. When construction of
the headquarters building was completed in 2015, theold buildings were demolished to convert the area into agreen zone.
Benches were installed in certain new grassy areas,
which are used as spaces for breaks and communicationby employees.

Reduction of waste materials

Reducing the environmental load during
waste disposal
In a product’s life cycle, waste disposal occurs mostly
during the product’s disposal at the dealer’s location. For
this, UD Trucks has developed its own waste-management
system and introduced internal disposal standards for28

Environmental Data

Energy/CO2-related data (Ageo Plant, Hanyu Plant, and Gunma Parts Distribution Center)
Total amount of CO2 emission/basic unit
TargetPer vehicle

Gross emissions (1,000 ton-CO2)

Basic unit (ton-CO2/vehicle)

Gross emissions

150

10

120

8

90

6

60

140

137

4

30

56

2

55

53
35

33

29

2015

2016

2017

0

1990

1995

2012

2013

2014

Diesel oil

City gas0(fiscal year)

CO2 emissions by energy source
Electricity

Heavy oil

Coke

LPG

Other

Gross emissions (1,000 ton-CO2)

140

0.5%
5.3%
5.9%

0.3%

12.4%

2.7%
45.1%

14.7%

18.0%
17.5%

0.6%

29
43.7%
33.3%
1990

(fiscal year)

2017

Heat budget of large-scale natural gas cogeneration

Exhaust loss

34.5%

Available heat

FY2017

65.5%

Input
100%

29

Steam

Power generation

22.9%

42.6%

Resource-related data (Ageo Plant, Hanyu Plant, and Gunma Parts Distribution Center)
Overview of waste disposal (FY2017)
Reused iron andnon-ferrous materials

Ageo Plant
Hanyu Plant
Gunma Parts
Distribution Center

Total waste generated

Recycled

FY2017FY2017

5,942 tFuel chips

5,926 t (99.7%)

Cement raw material

Landfill

RPF

FY2017
16 t (0.3%)

Final waste disposal volume (landfill)/recycling rate
Landfill

TargetLandfill (ton)20,0002,000

99.8

19,26899.8

99.7

Water consumption/basic unit

Rate of recycling

Consumption

Recycling rate (%)
100

Consumption (1,000 m3)
2,500

99.8

80

2,000

60

1,500

100

40

1,000

50

20

500

1,000 68.5

1990

1995

Basic unit (m3/vehicle)
100

99.7

89.4
2,273

0

Per vehicle

17

22

21

13

16

2013

2014

2015

2016

2017

0

80

2,070

60

1,643

40

780

20

678

508

0

1990

(fiscal year)

1995

2013

2014

2015

382

317

2016

2017

0

(fiscal year)*The target figures underwent a review from 2004 basedon the initiatives implemented by the Japan Automobile Manufacturers
Association’s Recycling and Waste Reduction Subcommittee.

PRTR data
Ageo Plant (FY2017)
Class

Class 1
designatedchemical
substances

Ordinance
number

Unit: kg/year
Chemical substance

Emissions

VolumehandledAtmosphere

Mileage

Water

Soil

Waste

Removaltreatment

Recycled

Consumption(products)

53

Ethylbenzene

20,462

9,027

0

0

0

2,260

9,072

103

80

Xylene37,147

12,967

0

0

0

2,462

21,167551

296

1,2,4-Trimethylbenzene

2,526

1,241

0

0

0

589

0

696

297

1,3,5-Trimethylbenzene

4,545

515

0

0

0

36

3,864

131

300

Toluene

7,843

5,354

0

0

0

1,456

119

914

30

Environmental Data

Environmental measurement data of environmental facilities in FY2017(Environment data measurement period: April 2017 to March 2018)

Ageo Plant
Regulation
value

Max.

m3/day—pH—

5.8–8.6

BOD

mg/L

COD

Water quality

Unit

Measured itemMin.

Average

9,532

0

1,015

7.8

6.7

7.3

25 (20)

4.1

1.2

2.2

mg/L

160 (120)

9.0

3.3

6.9

SS

mg/L

60 (50)

ND

ND

ND

N-Hex (mineral oil)

mg/L

5

ND

ND

ND

Phosphorus

mg/L

8

0.5

ND

0.2

Nitrogen

mg/L

60

6.3

1.5

3.0

Zinc

mg/L

2

ND

ND

ND

mg/L

8

ND

ND

ND

Unit

Regulation
value

Max.

Min.

Average

NOx

ppm

150

58

51

55

Dust

g/m3N

0.1

ND

ND

ND

NOx

ppm

200

140

89

115

NOx

ppm

230

19

6

6

Dust

g/m3N

0.2

0.002

ND

0.001

Unit

Regulation
value

Max.

Min.

Averagem3/day

—

65

0

8

Discharged volume

BOD: Biochemical oxygen demand
COD: Chemical oxygen demand
SS: Suspended substanceND: Not detected
Figures within parentheses( ) show the average per day

Fluorine and compound

Atmosphere

Measured
item

Facility
Water boiler

NOx: Nitrogen oxide

Cogeneration (gas engine)
Dry furnace 1

Hanyu Plant
Water quality

Measured item
Discharged volume
pH

BOD: Biochemical oxygen demand
COD: Chemical oxygen demand
SS: Suspended substanceND: Not detected
Figures within parentheses( ) show the average per day

AtmosphereNOx: Nitrogen oxide
SOx: Sulfur oxide—

5.8–8.6

7.3

7.1

7.1

BOD

mg/L

25（20）

3.9

1.5

2.9

COD

mg/L

160（120）

2.1

1.2

1.5

SS

mg/L

60（50）ND

ND

ND

N-Hex (mineral oil)

mg/L

5

ND

ND

ND

Nitrogen

mg/L

60

20.0

3.5

12.9

Zinc

mg/L

2

0.10

ND

ND

Unit

Regulation
value

Max.

Min.

Average

NOx

ppm

180

76

68

72

SOx

3

m N/h

0.493

ND

ND

ND

Dust

g/m3N

0.3

0.007

0.006

0.007

Facility

Boiler heavy oil(1.2 tons)

Water cooler/heater31

Measured
item

NOx

ppm

180

74

74

74

SOx

m3N/h

0.531

0.002

0.002

0.002

Dust

g/m3N

0.3

0.007

0.007

0.007

Gunma Parts Distribution Center
Unit

Regulation
value

Max.

Min.

Averagem3/day

—

11

0

7

pH

—

5.8–8.6

7.5

6.4

6.7

BOD

mg/L

80

7.7

1.2

3.6

SS

mg/L

20

8.0

1.0

3.2

N-Hex (mineral oil)

mg/L

1

ND

ND

ND

Unit

Regulation
value

Max.

Min.

Average

NOx

ppm

180

74

62

68

Dust

g/m N

0.2

0.002

0.001

0.002

Water quality

Measured item
Discharged volume

BOD: Biochemical oxygen demand
SS: Suspended substanceND: Not detected

Atmosphere

Facility
Boiler heavy oil
Nos.1, 2 and 3

NOx: Nitrogen oxide

Measureditem

ISO14001 certification status

FY1998Ageo Plant

FY2004

Kounosu Plant

FY2004

Hanyu Plant*Transferred to UniCarriers Corporation in March 2016

FY2005DRD Co., Ltd.

*Transferred to Tempstaff Co., Ltd. in June 2013

FY2005

Techsus Co., Ltd.

*Acquired by UD Trucks Corporation in July 2013

FY2006

N-Tech Co., Ltd.

*Transferred to Kihara Manufacturing Co., Ltd. in March 2015

FY2008Japan Vehicle Co., Ltd.

FY20093

PCB storage status (FY2017)

Ageo Plant*Transferred to Global Component Technologies Corporationin January 2015

*Acquired by UD Trucks Corporation in July 2011

Volvo Logistics Corporation Japan Co., Ltd.
*Acquired by UD Trucks Corporation in April 2014

Reactor902 kgDischarge coil

58 kg

Capacitor

8,628 kg

Ballast20,286 kg

Transformer

74 kg

Breaker

102 kgContaminated materials(waste clothes, etc.)
Total

1,115 kg
31,165 kg*“Transformer” includes the weight of the transformer
main body.

32

The Volvo GroupUD Trucks is a member of the Volvo Group, which is a global company based in Gotherburg, Sweden,
offering various solutions ranging from the manufacturing of trucks, buses, and construction equipment,
to that of marine and industrial engines. The Group also provides solutions for financial services.
With production facilities in 18 countries worldwide, the Volvo Group employs about 100,000 people andsells its products in more than 190 markets.

What we do

On the roadAt the site

The Volvo Group’s products help to ensure that people
have food on the table, can travel to their destinations,and have roads to drive on. Its products deliver goods tokeep production plants running.

Engines, machines, and vehicles from the Volvo Groupcan be found at construction sites, in mines, and in the
middle of forests.

In the city

At seaThe Group’s products are a part of daily life. They takepeople to work, distribute goods, and collect rubbish.
The Group develops the public transport solutions of
tomorrow with an increased focus on electrification.

The Group’s products and services are present,
regardless of whether someone is at work on a ship, on
holiday in a pleasure boat, or in need of urgent help fromsea rescue services.

Key performance 2017
Net sales, SEK bn
335
313 302273 283

Operating income, SEK bn
30.3
23.3 20.8
7.1

2013 2014 2015 2016 2017

Operating cash flow,
Industrial Operations, SEK bn

5.8

2013 2014 2015 2016 2017

Employeeengagement

Share of
women

75%

18%

Share of net sales
by market
North America

25%

Total CO2
emissions

1.2

t/SEK M

Energyconsumption
basic unit

6.4

MWh/SEK M

South America 5%

Asia 20%

Africa and Oceania 7%
Europe 43%

28.4

Sales ratio
by product

18.3

1.5

6.4

3.5

2013 2014 2015 2016 2017
SEK: Swedish krona

33

Vehicles 75%

Services 21%
Financial services 4%

Corporate strategy
In 2016, the Volvo Group announced the Group’s new“mission,” the “vision” to fulfill the mission, “aspirations”
that underpin efforts toward the vision, and “values” tofoster corporate culture. By sharing these with all
employees to indicate the direction the Volvo Group isaiming toward and reflecting them in all businessactivities, we strive to further our business and realize asustainable society.
In 2017, the Code of Conduct was renewed, which
specifies general rules and behaviors that all employees
should comply with, and it also clarifies the ethics andcompliance required in all business activities.

●

Driving prosperity
through transport
solutions●Be the most desired
and successfultransport solution
provider in the world

MissionHave leading customer
satisfaction for all
brands in theirrespective segments● Be the most admired
employer in our
industry● Have industry leading
profitability●

VisionAspirations
ValuesCode of Conduct

Customer success
Trust● Passion● Change● Performance●●

Strong brands
The Volvo Group operates multiple brands, including
Volvo (trucks, construction equipment, and buses), Volvo
Penta, UD Trucks, Terex Trucks, Renault Trucks,
Prevost, Nova Bus, and Mack Trucks. It also has
partnerships with SDLG, Eicher, and Dongfeng
Commercial Vehicles for joint ventures.
By offering diverse products and services from thesebrands, the Volvo Group meets different needs ofcustomers in both mature and growth markets.

Numbers of employees
by region
EuropeNorth America
Asia

47,561 55%

15,882 18%
16,526 19%
Africa and Oceania

2,361
Number of
employees

Share ofemployees

3%South America

4,774

5%
(2017)

Please visit the Volvo Group’s website for detailed information: www.volvogroup.com

34

UD Trucks Corporation
1-1, Ageo-shi, Saitama 362-8523, Japanudtrucks.com