"OUR CUSTOMERS' expectations are changing rapidly. This means that Volvo Cars is also changing rapidly,” says Håkan Samuelsson, president and chief executive at Volvo.
This follows news that the premium car maker will introduce new financial and operational ambitions that will position the company in the global automotive business by middle of next decade.
Volvo Cars expects these initiatives to transform its connection to its customer base, with the aim to build a total of over 5 million direct consumer relationships by the middle of the next decade, creating new sources of recurring revenue.
These initiatives will help transform Volvo from being purely a car company to being a direct consumer services provider,” continued Samuelsson.
The Swedish made brand, expects to generate sales annually from fully electric cars; one third of all cars sold to be autonomous driving cars; and half of all cars it offers to customers from its subscription service.
Global sales for Volvo Cars stand at 571,577 in 2017 resulting in 27.7 percent increase in operating profits.
In SA the brand has been well received although the numbers have not been confirmed.
“This paves the way for Volvo Cars to continue growing fast into the middle of the next decade,” says 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 expects to benefit from lower procurement costs, shared development costs and economies of scale alongside Polestar, its premium performance electric car brand, and LYNK & CO, the new global car brand in which Volvo Cars owns a 30 per cent stake.
Since its acquisition by Geely Holdings, it has also expanded its global manufacturing footprint and completely renewed its model portfolio in recent years.