2003 was a successful year for Volvo Cars, thanks primarily to record sales in the USA and huge demand for the Volvo XC90.
Total sales amounted to 415,046 cars, an increase of 2.2 percent compared with 2002.
Sales in North America increased by 21 percent to 148,528 cars, while Europe dropped back by 6.5 percent, largely owing to the difficult market situation in Germany.
During its first full year on the market, the Volvo XC90 was the biggest attention-grabber of the entire Volvo Cars model range. Sales of the XC90 totalled 62,177 cars, and demand for this model is so great that the company has now decided to increase the annual production rate to 90,000 cars.
Another positive development is that the success of the Volvo XC90 has not come at the expense of the Volvo XC70, which held its own compared with 2002. The best-selling model in the range for the past three years is the Volvo S60, with sales totalling 90,910 cars in 2003 (2002:107,463).
Fourteen consecutive months of climbing sales in the USA
Although the overall market shrank, Volvo Cars had its best-ever year in the USA. After fourteen straight months of steadily improving sales, 2003 ended with deliveries of 134,620 cars, an increase of 22 percent over the year before. As expected, the bestseller was the Volvo XC90, accounting for 35,791 cars sold.
In Europe, sales shrank by 6.5 percent to 221,632 cars (2002:236,951).
In Sweden, which is Volvo Cars’ second-largest market, sales dropped slightly by 1.5 percent to 47,928 cars. However, Volvo nonetheless maintained its market share of just over 19 percent, with the Volvo V70 leading the sales league with 23,000 cars. The V70 is the best selling car model in Sweden.
In Britain, sales shrank by 3.5 percent to 39,135 cars (2002:40,580).
A deep recession in Germany combined with a sagging overall market and the reorganisation of Volvo’s dealership network there combined to cut Volvo’s sales by 26 percent to 30,285 cars (2002:41,045).
Sales of imported cars in Japan decreased by almost 7 percent. Volvo, however, fared better than most of its competitors, managing to limit its sales cut to just 3 percent. All told, Volvo Cars sold 14,755 cars in Japan in 2003 (2002:15,242).
It is also worth noting that Volvo is selling well on key growing markets. In Russia, Volvo’s sales rose by 69 percent to 4,991 cars (2002:2,947) while China increased by 28 percent to 2,516 cars (2002:1,960).
The new Volvo S40 and Volvo V50
The new Volvo S40 and Volvo V50 were the main news models for Volvo Cars in 2003. The Volvo S40 had its world premiere at the Frankfurt Motor Show in early September, and three months later the wraps were pulled off the Volvo V50 at the motor show in Bologna.
These new compact models are the first fruits of Volvo’s technological cooperation with Ford and Mazda. The Volvo S40 and Volvo V50 boast dynamic driving properties and safety on a par with Volvo’s larger models.
The new Volvo S40 and Volvo V50 are made at the Volvo Cars factory in Ghent, Belgium. Volvo’s production in Born in the Netherlands ends with the phasing out of the previous generation Volvo S40 and V40 during the first half of 2004. When fully expanded, the Ghent factory will be the company’s largest production facility with an annual capacity of 270,000 cars.
In early 2003, Volvo also unveiled an updated Volvo S80, with a more elegant design and the unique FOUR-C chassis system that made its debut in the R models the year before.
New convertible in joint-venture with Pininfarina
During the year, it was announced that the next convertible from Volvo Cars would be developed in cooperation with world-renowned Italian design house Pininfarina. The partnership includes manufacture of the new open-top car, which will be built in a jointly owned facility in Uddevalla on Sweden’s west coast. Pininfarina owns 60 percent and Volvo Cars owns 40 percent of the new company, which is called Pininfarina Sverige AB.
Close cooperation with German transmission specialists GETRAG was launched at the Volvo Cars factory in Köping. GETRAG owns 60 percent and Volvo Cars 40 percent of the new company, GETRAG All Wheel Drive AB.
The aim of the partnership is to make Köping a competitive independent centre for the development and manufacture of four-wheel drive systems for the entire car industry. The Köping factory will also continue to manufacture chassis components.
Another noteworthy development is that Volvo’s facility in Skövde is the first engine factory in the world to receive the highly prestigious World Class Award for Total Productive Maintenance (TPM). 2003 also set a production record for the factory, with a total of 391,000 engines manufactured.
Retail sales 2003 compared with 2002
Per region | 2003 | 2002 | Change in % |
North America | 148,528 | 122,811 | +21 |
Europe | 221,632 | 236,951 | -6.5 |
Asia/Oceania | 12,065 | 11,681 | +3 |
VCOC | 13,838 | 14,759 | -6.2 |
Japan | 14,755 | 15,242 | -3.2 |
VCIC | 4,222 | 3,972 | +6.3 |
Other | 6 | 1,279 | - |
VCC Total | 415,046 | 406,695 | +2.2% |
Per model | 2003 | 2002 | Change in % |
Volvo XC90 | 62,177 | 5,040 | +1,234 |
Volvo XC70 | 35,146 | 35,320 | -0.5 |
Volvo S80 | 38,644 | 42,815 | -10 |
Volvo S60 | 90,910 | 107,463 | -16 |
Volvo S40 | 43,068 | 51,388 | -16 |
Volvo V70 | 83,359 | 94,729 | -12 |
Volvo V40 | 53,592 | 61,475 | -13 |
Volvo C70 Cab | 7,840 | 6,148 | +28 |
Volvo C70 coupe | 288 | 2,208 | -87 |
Production
|
|
|
|
|
SWEDEN |
| THAILAND | 1,296 | |
TORSLANDA |
|
| Volvo XC90 | 552 |
(Gothenburg) | 158,384 |
| Volvo S80 | 192 |
Volvo S80 | 38,889 |
| Volvo XC70 | 36 |
Volvo XC70 | 35,561 |
| Volvo V70 | 84 |
Volvo V70 | 15,458 |
| Volvo S60 | 264 |
Volvo XC90 | 68,476 |
| Volvo X40 | 168 |
|
|
|
|
|
UDDEVALLA | 7,885 |
| MALAYSIA | 1,056 |
Volvo C70 | 7,885 |
| Volvo XC90 | 576 |
|
|
| Volvo S80 | 120 |
BELGIUM |
|
| Volvo S60 | 120 |
GHENT | 157,149 |
| Volvo X40 | 240 |
Volvo V70 | 67,364 |
|
|
|
Volvo S60 | 84,908 |
|
|
|
New S40/V50 | 4,877 |
| TOTAL PRODUCTION | 416,329 |
|
|
| Volvo S80 | 39,201 |
THE NETHERLANDS |
| Volvo C70 | 7,885 | |
BORN, NedCar | 89,191 |
| Volvo XC70 | 35,597 |
Volvo X40 | 89,191 |
| Volvo V70 | 82,906 |
|
|
| Volvo S60 | 85,292 |
SOUTH AFRICA |
| Volvo X40 | 90,967 | |
Volvo X40 | 1,368 |
| Volvo XC90 | 69,604 |
|
|
| New S40/V50 | 4,877 |
Employees
Volvo Cars had 28,100 employees in the end of 2003.
AWARDS 2003
Volvo XC90 |
|
|
Canada |
|
|
XC90 - Pyramid Award for Safety Innovation (ROPS) |
| Canadian Automobile |
|
|
|
France |
|
|
XC90 - Design Award |
| Salon du 4X4 de Val |
|
|
|
Germany |
|
|
XC90 - Best imported SUV |
| Auto Trophy of |
|
|
|
XC90 - Best Design |
| Readers of Auto |
|
|
|
XC90 - Innovation price for ROPS |
| Auto Bild alles Allrad |
|
|
|
Hungary |
|
|
XC90 - The family car in 2003 |
| Nök Lapja ladies weekly |
|
|
|
Malaysia |
|
|
XC90 - Premium SUV of the Year |
| New Straits Times |
|
|
|
XC90 - Car of the Year |
|
|
|
|
|
Russia |
|
|
XC90 - Best Vehicle in SUV Class |
| "Golden Klaxon" - |
|
|
|
Saudi Arabia |
|
|
XC90 - 4X4 of the year 2004 |
| Arabian Man/Arabian |
|
|
|
Singapore |
|
|
XC90 - Car of the Year Award/SUV of the Year Award |
| Singapore Straits Times |
|
|
|
Sweden |
|
|
XC90 - Design Prize |
| Association of Swedish |
|
|
|
The UK |
|
|
XC90 - Scottish Car of the Year Award 2003 |
| Ass. of Scottish Motoring |
|
|
|
XC90 - Best SUV (Scottish Car of the Year) |
| Ass. Of Scottish Motoring |
|
|
|
XC90 - Car of the Year 2003 and Best 4x4 Off-Roader Auto Express New Car Honours |
| Auto Express magazine |
|
|
|
XC90 - Best 4X4 2003/Top Gear Car of the Year |
| Top Gear Magazine |
|
|
|
XC90 - Best 4X4 Car of the Year 2003 awards |
| What Car? Magazine |
|
|
|
The US |
|
|
XC90 - Best Family Vehicle of the Rocky Mountain |
| Rockies Automotive Press Organisation |
|
|
|
|
|
|
XC90 - Best Engineered Vehicle for 2003 |
| Automotive Engineering |
|
|
|
XC90 - Best Winter Vehicle |
| New England Press Ass. |
|
|
|
Best of the Best for 2003 - Car of the Year |
| Automondo |
|
|
|
XC90 - Truck of the Year in North America |
| North American |
|
|
|
Volvo S60 |
|
|
The US |
|
|
S60R - Europe Car Grand Prix winner |
| European Car Magazine |
|
|
|
S60R - Car of the Year |
| European Car Magazine |
|
|
|
S60 AWD - Best All-weather sedan $30,000+ |
| New England Press Ass. |
|
|
|
Volvo XC70 |
|
|
The US |
|
|
XC70 - Best All-Wheel Drive Wagon |
| SmartMoney Magazine |
|
|
|
XC70 - Best All-weather wagon |
| New England Press Ass. |
|
|
|
Volvo S80 |
|
|
China |
|
|
"My most admirable luxury car" |
| www.sina.com |
|
|
|
Sweden |
|
|
S80 Bi-Fuel - Best Environmental Car in Large Car Category |
| Gröna Bilister (Green Motorists Org) |
|
|
|
The UK |
|
|
S80 - Executive Car |
| Auto Express Used Car |
|
|
|
Volvo V70 |
|
|
Germany |
|
|
V70 - Best import car in upper middleclass |
| Flottenaward by |
|
|
|
The UK |
|
|
V70 - Estate Car |
| Auto Express Used Car |
|
|
|
New Volvo S40/V50 |
|
|
Russia |
|
|
Volvo S40 - Best Vehicle in Middle Class |
| "Golden Klaxon" - |
|
|
|
Other awards |
|
|
Germany |
|
|
Volvo Bi-Fuel CNG - Best imported alternative fuel |
| Flottenaward by |
|
|
|
Sweden |
|
|
Volvo Bi-Fuel cars - Miljöbästa bil 2003 |
| Gröna Bilister "Green |
|
|
|
My Concept Car (Your Concept Car) - Project group |
| "The Golden Sparkplug |
|
|
|
The UK |
|
|
Peter Horbury - Special Award |
| Auto Express Used Car |
For further information, please contact Christer Gustafsson, press officer, Volvo Cars public relations department, telephone number +46 31 - 59 65 25 or +46 708 - 20 80 15.
50250/CG