Volvo confident sales and profitability to improve in 2015

(February 27, 2015) Volvo Car Group expects sales and profitability to show a clear improvement in 2015, driven by continued growth in China and Europe and a return to growth in the US, according to Håkan Samuelsson, president and chief executive.

The combined effect of this strong global performance and the introduction of the all new XC90 during 2015 means overall sales should approach 500,000 cars, up from 465,866 in 2014, said Samuelsson. Increased sales will drive the company’s improvement in profitability for the full year, aided by favorable currency movements, he added.

The confident forecast for 2015 follows a solid 2014 in which sales hit a new record of 465,866 cars, up 8.9 per cent compared to 2013, and operating profit increased to SEK2,252m ($270 million), compared to SEK1,919m ($230 million) in 2013.

Håkan Samuelsson

“Volvo’s story in 2015 will continue to be one of growth and sustainable profitability,” said Samuelsson. “This year, however, we will undoubtedly receive a boost after we start delivering the new XC90 to customers. This car is already a success. We have already received orders for around 17,000 XC90s, around a third of expected volume in 2015.”

The all-new Volvo XC90 is built on entirely new, in-house financed and developed Scalable Product Architecture (SPA) technology, which improves drivability and provides a wider range of design options. SPA will be used across the product range in future and will generate economies of scale, improvements in productivity and improved profitability.

The XC90 also features Volvo Cars’ new Drive-E powertrains and the most comprehensive safety package on the market as standard, including several world-first technologies.

“I am extremely confident in the direction we are taking in terms of our products and technology. At the same time, it is also extremely important that we build our future development on stable finances,” said Samuelsson.

“We have shown in 2014 that we can improve our earnings, despite unfavorable currency developments, while developing world-beating cars, investing in new car programs and maintaining a constant vigilance towards costs. These disciplines will remain in place in coming years.”

It is Volvo Cars’ long term strategic ambition to further develop its position as a global premium car maker. Driven by the complete renewal of its product range in the next five years, Volvo is aiming to double sales to around 800,000 cars a year by around the year 2020 while always improving profitability.