Volvo Cars is to extend its range of compact cars into new segments on its highly-innovative Compact Modular Architecture (CMA), a smaller but equally advanced version of Volvo’s acclaimed Scalable Product Architecture (SPA). The company’s first car on CMA is expected to be launched in 2017.
CMA’s introduction in 2017 means that all future Volvo cars will be built on just two fully scalable and wholly modular vehicle architectures.
The simultaneous development of SPA and CMA has formed the cornerstone of Volvo’s product renewal and growth strategy, which involves the replacement of every single car in its line-up in the next four years and an annual sales volume of up 800,000 cars. This process started with the launch of the XC90 and will continue shortly with the launch of the new S90 premium saloon.
CMA allows Volvo Cars to offer customers of compact cars the same type of premium engineering benefits as owners of its larger cars built on SPA. Shared technology between SPA and CMA will include powertrains (both conventional and new plug-in hybrid variants) and the infotainment, climate and data network and safety systems taking the Swedish car maker ever closer to its vision of no deaths or injuries in its new cars by 2020.
“The flexibility of CMA liberates Volvo’s engineers and designers, allowing them to devise and introduce a wide range of new and alluring features whilst at the same time improving drivability, offering world-class safety features and connected car technologies,” said Dr Peter Mertens, Senior Vice President, Research & Development at Volvo Car Group.
CMA will also change the way Volvo Cars builds its products in the future by allowing a wide range of cars, powertrains, electrical systems and technologies of varying complexity to be fitted on the same architecture, generating significant economies of scale and a more streamlined manufacturing process.
Volvo Cars’ CMA has been designed from the outset to embrace electrification – offering a new Twin Engine plug-in hybrid variant designed especially for the new architecture.
“We are in a terrific position with CMA. We have developed this new architecture as a plug and play component. This means that on Volvo’s next generation of compact cars you will benefit from the advanced technologies available on our XC90 today,” said Dr Mertens.
Volvo Cars expects to significantly increase its global volumes with the coming range of CMA-based cars, which will have a truly global footprint and take the Swedish brand into exciting new product segments.
“CMA is a key part of the continued growth strategy of the Volvo Cars brand,” said Björn Annwall, Senior Vice President, Sales Marketing and Customer Service at Volvo Car Group. “Apart from offering all the benefits and features of a larger premium car, such as the industry-leading safety, powertrain and infotainment technologies, CMA will deliver a true and distinctive Volvo driving and ownership experience setting it apart from others in this growing premium segment.”
Volvo Car Group in 2014
For the 2014 financial year, Volvo Car Group recorded an operating profit of 2,252 MSEK (1,919 MSEK in 2013). Revenue over the period amounted to 129,959 MSEK (122,245 MSEK). For the full year 2014, global sales reached a record 465,866 cars, an increase of 8.9 per cent versus 2013. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.
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 26,000 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).