Volvo Car Group, including its strategic affiliates Lynk & Co and Polestar, produce vehicles based on the Compact Modular Architecture (CMA) platform, introduced in 2017. To the end of July more than 600,000 group vehicles based on the platform have been sold.
The CMA platform, co-developed by Volvo Cars and Zhejiang Geely Holding (Geely), is an excellent example of the joint development, production and procurement achieved since Geely’s acquisition of Volvo Cars on August 2, 2010.
The platform debuted in 2017 with the hugely-popular Volvo XC40, and due to its modular design, was used to create the Lynk & Co 01, 02, 03 and 05, as well as the pure electric 2020 Polestar 2 and Volvo’s first all-electric model, the XC40 Recharge.
Deliveries of the new CMA-based Polestar 2, which will begin in August, will continue to drive sales on this successful platform.
“We are incredibly proud of these sales figures for our CMA cars,” said Håkan Samuelsson, chief executive at Volvo Cars. “We have had ten very successful years with Geely and we will continue to leverage the excellent partnerships we have created within the group to pave the way for further growth and synergies.”
Since the acquisition by Geely ten years ago, Volvo Cars has completely renewed its product portfolio of SUVs, estates and sedans, and became the first traditional carmaker to commit to all-out electrification, supported by the introduction of its Recharge range. The range offers a PHEV option on all of Volvo car models, with the aim that by 2025, half of its global sales volume will consist of fully electric cars, with the rest hybrids.
The CMA platform is the foundation for the new Volvo XC40 Recharge; the first of Volvo’s fully-electric Recharge range. Deliveries of the XC40 Recharge will start this fall.
“Volvo Cars today is stronger than it has ever been,” said Håkan Samuelsson, “and we still have much to do. We are excited to see our fully electric vehicle range reach the market, led by the XC40 Recharge, and we will keep this momentum going by investing in electrification, new technologies, and future mobility solutions.”
Over the past decade, Volvo Cars has transformed its business to become a truly global player in the automotive industry. It has grown its global sales from 449,255 in 2011 to over 700,000 in 2019, more than doubled its revenue from SEK 126 billion in 2011 to SEK 274 billion in 2019, and strengthened its operating profit from SEK 1.6 billion in 2011 to SEK 14.3 billion in 2019.
The company also expanded its manufacturing and R&D network across the globe: while it started out with two manufacturing plants and an engine plant in Europe, it now has four additional manufacturing sites and an R&D centre in China, as well as a manufacturing plant in the United States.
In the coming years Volvo Cars aims to establish itself as a leader in electrification and by 2025, it wants half of its global sales volume to consist of fully electric cars, with the rest hybrids.
It also aims to establish millions of direct consumer relationships through new forms of mobility, and it expects to play a leading role in the safe introduction of autonomous drive technologies.
These and other ambitions have been made possible and credible thanks to the establishment of a sustainable and profitable business model over the past decade, providing Volvo Cars with a solid platform for further growth.
Notes to editors
The acquisition of Volvo Cars by Zhejiang Geely Holding was announced on March 28th and finalized on August 2nd, 2010.
Volvo Cars has, since the XC40 was introduced in 2017, sold 302,856 of the popular compact SUV.
Lynk & Co, a joint venture between Volvo Cars, Zhejiang Geely Holding and Geely Automobile, introduced in 2016, had in June 2020 sold a total of 309,255 of its 01, 02, 03 and 05 models.
Geely Automobile, controlled by Zhejiang Geely Holding, also produce vehicles on the CMA platform. In June 2020, it had sold a total of 35,708 CMA based vehicles.
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 premium 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 into 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.