Volvo Car Group forecasts sales and profitability will show a clear improvement in 2015
Volvo Car Group (Volvo Cars) expects sales and profitability to show a clear improvement in 2015, driven by continued growth in China and Europe and a return to growth in the US, according to Håkan Samuelsson, President and Chief Executive.
The combined effect of this strong global performance and the introduction of the all new XC90 during 2015 means overall sales should approach 500,000 cars, up from 465,866 in 2014, said Mr Samuelsson. Increased sales will drive the company’s improvement in profitability for the full year, aided by favourable currency movements, he added.
The confident forecast for 2015 follows a solid 2014 in which sales hit a new record of 465,866 cars, up 8.9 per cent compared to 2013, and operating profit increased to SEK2,252m, compared to SEK1,919m in 2013.
“Volvo’s story in 2015 will continue to be one of growth and sustainable profitability,” said Mr Samuelsson. “This year, however, we will undoubtedly receive a boost after we start delivering the new XC90 to customers. This car is already a success. We have already received orders for around 17,000 XC90s, around a third of expected volume in 2015.”
The all-new Volvo XC90 is built on entirely new, in-house financed and developed Scalable Product Architecture (SPA) technology, which improves driveability and provides a wider range of design options. SPA will be used across the product range in future and will generate economies of scale, improvements in productivity and improved profitability.
The XC90 also features Volvo Cars’ new Drive-E powertrains and the most comprehensive safety package on the market as standard, including several world-first technologies.
“I am extremely confident in the direction we are taking in terms of our products and technology. At the same time, it is also extremely important that we build our future development on stable finances,” said Håkan Samuelsson.
“We have shown in 2014 that we can improve our earnings, despite unfavourable currency developments, while developing world-beating cars, investing in new car programmes and maintaining a constant vigilance towards costs. These disciplines will remain in place in coming years.”
It is Volvo Cars’ long term strategic ambition to further develop its position as a global premium car maker. Driven by the complete renewal of its product range in the next five years, Volvo is aiming to double sales to around 800,000 cars a year by around the year 2020 while always improving profitability.
More information on Volvo Car Group’s results over 2014 can be found in the Group's Financial Report January-December 2014. The report contains more details on developments in Volvo Car Group’s various markets, as well as in-depth financial information. The full report is available for download here.
About the Volvo Car Group Financial Report January-December 2014
The financials in the Financial Report January-December 2014 refer to the consolidated business result of Volvo Car Group. This includes Volvo Car Corporation, its parent company Geely Sweden AB, and all its subsidiaries. In Sweden, audited annual reports for Geely Sweden Holdings AB, Geely Sweden Automotive AB, Geely Sweden AB and Volvo Car Corporation are filed with the authorities on an annual basis. The consolidated financial statements of Geely Sweden AB represent the Volvo Car Group business performance.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 465,866 in 2014 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
As of December 2014, Volvo Cars had over 25,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium) and Chengdu (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).