(February 18, 2016) STOCKHOLM — Volvo Cars expects to make record sales in 2016 for the third consecutive year, Håkan Samuelsson, president and chief executive said. Samuelsson also forecast that operating profits would also improve in 2016 driven by growth in all of Volvo’s three main sales regions of China, Europe and the US.

The forecast came the same day Volvo reported it tripled its operating profit in 2015 to 6.62 billion Swedish crowns ($776.6 million) from 2.13 billion in the previous year.
 
Volvo also today 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. Sales were boosted by the introduction of its new 90 series cars and strong sales of existing models. It also reported record sales for 2014 of 466,000 cars.

Volvo is implementing a transformation program as part of its long term strategic ambition to become 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.

Production of much-anticipated XC90 SUV (pictured at right) commenced. By the end of the year the company had received over 88,000 orders, far surpassing its initial expectations. Production of the XC90 also led to the introduction of a third shift at the Torslanda plant in Sweden for the first time since 2008, creating nearly 1,500 new manufacturing jobs.

In the first half of 2015, Volvo also restructured the company to more accurately reflect how and where it does business by incorporating its three joint venture operations in China, providing a more accurate financial and operational picture of the company.

Volvo is banking on a $11 billion investment program in a string of new models and plants to secure it a firm foothold in a premium market dominated by German heavyweights such as Mercedes-Benz and BMW.

Strong sales of the brand's new XC90 SUV helped drive the rise in revenues, while a slowdown in China was more than offset by growth in other markets.

In the second half of the year, construction started on Volvo’s new $500 million manufacturing facility in South Carolina, which is due to be operational in 2018. The new plant means Volvo will be able to build and sell cars in each of its three core regions, Europe, the US and China, highlighting its global aspirations.