Volvo Car Group, the premium car maker, trebled its operating profit for 2015 to SEK6.620bn compared with SEK2.128bn for the same period in 2014. Revenue for the year was SEK164,043m, up from SEK137,590m in 2014.
The company also reported an all-time sales record of 503,127 cars in 2015, the first time it has sold more than half a million cars in its 89-year history, boosted by the introduction of its new 90 series cars and strong sales of existing models.
“I am pleased to report that 2015 was a year of record sales and trebled profits,” said Håkan Samuelsson, President and Chief Executive of Volvo Cars. “Now, with a successful 2015 behind us, Volvo Cars will enter the next phase of its global transformation. Once completed, Volvo will be a truly global premium car company."
Volvo is implementing a SEK75bn transformation programme as part of its long-term strategic ambition to establish itself as a global premium car maker. Driven by the complete renewal of its product range, Volvo is aiming to almost double sales to around 800,000 cars a year in the medium term.
In 2015, the company made significant progress in achieving this goal.
Production of the new XC90 started and the end-of-year order intake of more than 88,000 XC90s far surpassed initial targets for the model. The start of production also meant the introduction of a third shift at the Torslanda plant in Sweden and more than 1,500 new manufacturing jobs.
In the first half of the year, Volvo also incorporated its three joint-venture operations in China, thereby taking control of the operations and providing a more accurate financial and operational picture of the company.
In the second half of the year, construction started on Volvo’s new manufacturing facility in South Carolina in the United States. The facility represents an investment of around USD500m and will be operational as of 2018. The new plant means Volvo will be able to build and sell cars in each of its three core regions, highlighting its global aspirations.
In December, Volvo revealed its new S90 premium saloon to wide acclaim at an event in Gothenburg. The S90 is the second new model on Volvo’s modular Scalable Product Architecture (SPA).
Full results for the full year 2015 will be revealed today at 10:00 CET during a press conference at the Volvo Showroom in Kungsträdgården, Stockholm.
The press conference can be followed via the web here.
More information on Volvo Car Group’s results can be found in the Group's Interim Report Second Half and Full Year 2015, which are available for download on the Volvo Car Group Global Newsroom (media.volvocars.com).
About the Volvo Car Group financials for 2015
The financials in the Interim Report Second Half and Full Year 2015 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 503,127 in 2015 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 2015, Volvo Cars had almost 29,000 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).