There are several innovations in Volvo's future both in terms of product range and corporate structure.
As the CEO of the Chinese-Swedish company Jim Rowan specified during a recent meeting with shareholders, the launch of "three new fully electric cars (EX30, EX90 and EM90 ed.) will significantly expand Volvo Cars' offering at global, helping it to profitably enter new demographic and market segments never previously explored."
However, Rowan also added that "in addition to this, Volvo Cars will update its plug-in hybrid models, which represent an important step towards full electrification.
Together with fully electric cars, these cars contribute to creating a Volvo Cars' broad and interesting offering for the current global market."
"We see - said the CEO of Volvo Cars - that many consumers choose the plug-in hybrid as the first step towards complete electrification, and the next car they buy will be a fully electric car".
Volvo Cars expects this to spur growth this year that will lead to a significant increase in the share of fully electric cars compared to 2023. Furthermore, the new electric models will help to further reduce the margin gap between electric and combustion engine models in 2024
Volvo's new entry-level electric EX30, in particular, is set to deliver gross margins of 15-20% and brings the company closer to that goal
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Volvo Cars also expects the upcoming EX90, which will enter production in the second quarter, and the EM90, both large-sized, to help close the gap between EV and Ice margins.
"I firmly believe that the commitment made in 2022 and 2023 will allow us to achieve our objectives for the years to come - declared Rowan - Our strategy is well defined. And we believe it is the right one for Volvo Cars, for our customers and for the environment".
But in the same meeting with analysts it emerged that Volvo Cars is entering a decisive phase in its transformation journey.
In the period up to 2025, Volvo Cars will make the investments (structural and strategic) necessary to lay the technological foundations for its future success and this will lead to a temporary increase in investments which will return to normal levels.
In this area of financial reprogramming, Polestar (which has been wholly controlled by Volvo Cars since 2015) is preparing to follow the development of the parent company and to "concentrate all resources on the journey undertaken.
"In this regard - continues the communication to shareholders - an evaluation of the possibility of an adjustment of Volvo Cars' participation in Polestar is underway, also through a distribution of shares in favor of shareholders".
It was highlighted that this "could result in Geely Sweden Holdings becoming a new significant shareholder. Geely will continue to provide Polestar with full operational and financial support in the future. Volvo Cars will therefore not provide further financing to Polestar, but will extend the period of repayment of the 18-month convertible loan, until the end of 2028.
The company however specified that the close operational collaboration between Volvo Cars and Polestar in the areas of R&D, production, after-sales and commercial "will continue to the benefit of both companies".
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