Volvo Cars reports record operating profit
Record sales of Volvo’s portfolio of award-winning SUVs and premium passenger cars have driven the company to a record operating profit in 2017.
Last year’s operating profit of SEK14.1 billion (approximately A$2.2 billion) is a strong 27.7 per cent increase over 2016’s result.
Net revenue and the operating profit margin both increased year on year to underline the comprehensive transformation of Volvo’s finances and operations in recent years, positioning the company for its next growth phase.
Global vehicle sales increased seven per cent in 2017, from 534,332 to 571,577. The fourth consecutive year of record sales growth keeps Volvo Cars on track to reach its global goal of 800,000 sales by 2020.
2017 marked a number of product highlights for the company. It launched the second-generation version of its hugely successful XC60 mid-sized luxury SUV, and unveiled its first ever compact SUV, the XC40.
Volvo Cars also announced an industry-first portfolio strategy to electrify its entire model line-up, stating that every new model from 2019 will feature an electric motor. In a further commitment to electrification, it launched Polestar – a new stand-alone electrified car brand fully consolidated within the Volvo Car Group.
Volvo Cars enhanced its collaboration with Geely Holding via the creation of a joint venture technology company to provide further economies of scale in technology development. It also acquired a 30 per cent stake in Geely’s new LYNK & CO car brand, with which it shares the Compact Modular Architecture (CMA).
In 2017, Volvo Cars signed a framework agreement with ride-hailing company Uber to sell it tens of thousands of autonomous driving compatible base cars between 2019 and 2021.