Volvo Cars and its strategic affiliate Polestar can confirm that they will reduce fleet emissions beyond their joint CO2 target for 2020 as defined by the regulations set by the European Commission, adding further credibility to both companies’ strategic focus on electrification.
As a result, Volvo Cars and Polestar have, as Volvo Car Corporation, entered into a pooling arrangement with Ford offering their surplus CO2 emissions to Ford and potentially other car makers in line with the pooling system implemented by the European Commission. The resulting revenue from the deal will be reinvested in new green technology projects.
“For Volvo Car Group, the future is electric and we are transforming our company through concrete action,” said Håkan Samuelsson, Chief Executive of Volvo Car Group. “I am pleased to see that we are exceeding our CO2 reduction targets. It proves our strategy is the right one for our business and for the planet.”
Volvo Cars was the first established car maker to commit to all-out electrification and is the only brand to offer a plug-in hybrid variant of every model in its line-up. It will also introduce a range of fully electric models in the coming years, starting with the XC40 Recharge Pure Electric, deliveries of which will start later this year.
Sales of its plug-in hybrid cars amounted to more than a quarter of sales in Europe during the first three quarters of 2020. During the period, Volvo Cars was the number-one plug-in hybrid premium brand in Europe as measured by IHS, and by 2025 Volvo Cars aims for its global sales volume to consist of 50 per cent fully electric cars, with the rest hybrids.
Meanwhile, Polestar started deliveries of its fully electric Polestar 2 model earlier this year and has quickly become one of the most prominent electric car brands in Europe, as the electric car company continues to build its presence in the market.
Volvo Cars’ electrification strategy is part of its ambitious climate plan, under which it aims to become a climate-neutral company by 2040. The plan goes beyond addressing tailpipe emissions through electrification; the company will also tackle carbon emissions in its manufacturing network and wider operations, its supply chain and through recycling and reuse of materials.
As a first, tangible step towards its 2040 goal, the company aims to reduce its lifecycle carbon footprint per car by 40 per cent between 2018 and 2025, including through a 50 per cent reduction in tailpipe emissions per car.
Notes to editors
Volvo Car Group in 2019
For the 2019 financial year, Volvo Car Group recorded an operating profit of 14.3 BSEK (14.2 BSEK in 2018). Revenue over the period amounted to 274.1 BSEK (252.7 BSEK). For the full year 2019, global sales reached a record 705,452 (642,253) cars, an increase of 9.8 per cent versus 2018. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world, with sales of 705,452 cars in 2019 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding since 2010.
In 2019, Volvo Cars employed on average approximately 41,500 (41,500) full-time employees. Volvo Cars’ head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars’ head office for APAC is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China), and body components in Olofström (Sweden).
Under its new company purpose, Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This purpose is reflected in a number of business ambitions: for example, by the middle of this decade it aims for half of its global sales to be fully electric cars and to establish five million direct consumer relationships. Volvo Cars is also committed to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.