The Volvo Car Group (Volvo Cars) has reported a 17.4% increase in operating profit for 2014 to 2.2 billion SEK (RM935 million) with an all-time sales record of 465,866 cars delivered to their customers, an increase of 8.9% compared to 427,840 in 2013.
According to the automaker, in China, the company’s largest market, Volvo Cars sold over 80,000 cars. In Europe, Volvo grew twice as fast as the overall market and all of its main competitors in the region. Volvo Cars has now reported sales growth every month since July 2013.
“It is essential to remember that the company is in an investment phase right now,” said Håkan Samuelsson, President and Chief Executive. “The fruits of these investments will start to be felt from this year.”
Volvo Cars is investing in a global transformation as part of its long term strategic ambition to enhance its position as a global premium car maker. Driven by the complete renewal of its product range, Volvo is aiming to double sales to around 800,000 cars a year in the medium term.
During 2014, Volvo Cars took several important steps towards achieving these goals such as the unveiling of the all-new Volvo XC90, which is built on an entirely new, in-house developed Scalable Product Architecture (SPA) technology, which improves driveability and provides a wider range of design options.
The XC90 also features Volvo Cars’ new in-house developed Drive-E powertrain, which provides a world leading combination of power and low carbon emissions. In addition, the XC90 offers world first safety technologies and the most comprehensive safety package on the market as standard.
In 2014, the company also continued to expand its industrial footprint in China and Europe.
Production of the best-selling XC60 started at its Chengdu plant, while the company also expanded its manufacturing footprint in China by announcing that SPA-based cars will be built at its plant in Daqing. In Sweden, the re-introduction of a third shift in the Torslanda plant was announced, creating 1,300 new jobs.
