Volvo has announced a new ambition to become a leading player in the global automotive business by the middle of the next decade.
The company expects to generate half of all sales from fully electric cars, one third of all cars sold to be autonomous and half of all cars it offers to customers from its new subscription service.
Volvo says these initiatives will transform its connection to its customer base, with the aim to build a total of more than five million direct consumer relationships by 2025.
“Our customers’ expectations are changing rapidly. This means that Volvo Cars is also changing rapidly. These initiatives will help transform Volvo from being purely a car company to being a direct consumer services provider,” said Hakan Samuelsson, president and chief executive of Volvo Cars.
Volvo is aiming for profitability in line with other premium car makers, driven by increased sales and revenues across all sales regions, and a broader range of cars including sales to the new segment of autonomous ride-hailing companies.
It will lower procurement costs, shared development costs and economies of scale alongside Polestar, its premium performance electric car brand, and Lynk & Co, the new brand in which Volvo Cars owns a 30% stake.
“This paves the way for Volvo Cars to continue growing fast into the middle of the next decade,” said Samuelsson.
“The company has been transformed since 2010 into a global premium car company. Now it is time for this transformation to be turned into a period of sustained profitability in line with other premium brands.”
Volvo Cars achieved record profits and sales in 2017, with a 27.7% percent increase in operating profit and global sales of 571,577 cars. The results marked the company’s fourth consecutive year of record growth.
In the UK, Volvo sold 46,139 cars in 2017. This year, the brand has amassed sales of 19,060 to date.