Over the next five years, Volvo Cars plans to invest USD 10 billion in an aggressive product plan globally. The volume target is to achieve sales of 800,000 cars by 2020.

The core strategy is to continue to strengthen the presence in mature markets, while also fully capitalising on the potential offered by emerging growth markets. Volvo Cars’ goal is to sell profitable cars in the luxury segment. The key to success is to design cars around people – cars that fulfil customers’ dreams and requirements.

Positive sales figures
Following two challenging years, Volvo Cars reported a profit for the first quarter of 2010 and the positive trend continued for the remainder of the year. Earnings for the entire year point to a profit in all quarters – a sharp recovery compared with 2009, for which the company recorded a loss of USD 653 million. Eco-sound cars were a major factor underlying the upturn during the year.

During 2010, global sales rose 11.6 percent (373,525 cars) compared with the preceding year. The most successful markets included Russia, with a sales surge of 54.5 percent compared with 2009, Belgium (up 35.9 percent) and Norway (up 38.9 percent). Demand for the fuel-efficient DRIVe models remains buoyant, with XC60 sales outperforming all other models in the Volvo range. 

Key second domestic market
The growth strategy in China means that Volvo Cars plans to build new plants and make major investments that will contribute to the development of new global car models. In addition, the number of dealers will double and an entirely new car model will be manufactured. The goal is to sell 200,000 vehicles in China by 2015 by capitalising on sharp growth in luxury car sales in the Chinese market and by expanding market share.

The initial plant will be built in Chengdu. Manufacturing will get underway in 2013, with an annual production capacity of more than 100,000 cars. The next step to be studied is the construction of a second plant in the Northern Chinese city of Daqing, which is planned to produce an additional 200,000 cars annually.

The supplier base in China will be optimised for the global market. Wherever the cars are developed and built, the focus will always be on quality and safety. Volvo Cars’ global manufacturing and quality systems apply irrespective of where the cars are produced.

Scandinavian Luxury