Volvo Cars has announced the launch of seven new models for western markets by the end of the decade as it targets profit margins in excess of 8% plus a strong cash flow.
The automaker set out its business roadmap during a Strategy Update for investors and media in Stockholm, Sweden. The series of strategic steps focus on its challenges relating to region-specific products, flexible electrification of powertrains, synergies with parent company Zhejiang Geely Holding Group, and moving from selling products to offering complete customer solutions, the company said in its Sept. 17 release.
“As markets increasingly deglobalise through technology restrictions, trade tariffs and diverging customer preferences, Volvo Cars is turning regionalisation into a competitive advantage,” the automaker said.
The seven vehicles for western markets will use Volvo’s SPA2 and SPA3 platforms, where existing investments in technology and manufacturing will see savings from current levels. As more electrified cars move to SPA-based or shared hybrid platforms, profit margins per car will increase significantly as well, the company said.
Its expectations for improved profit margins would be a major turnaround compared to its full year 2025 figure of just 3.5%.
Globally, the company’s plans include a total of 13 new products by 2030 with six specifically aimed at the China market using its production relationship with Geely. Volvo expects to benefit from shared platforms, a software stack for China as well as common parts and a common supply chain. It also expects additional savings from its links with Geely for hardware sourcing in Europe and China.
“The challenges for the car industry are immense, but our strategy gives a clear answer to how we adapt to these and our ambition is to be the leading premium car brand,” Volvo Cars President and CEO Håkan Samuelsson said in a statement. “With a regionally optimized product portfolio, unique synergies, electrification and new levels of efficiency, we will build a company capable of reaching beyond 8% EBIT margins.”
