Volvo Cars aims to double its profit margins by launching seven new models for western markets by the end of the decade. The company 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 region-specific products, flexible electrification of powertrains, and cooperation with parent company Zhejiang Geely Holding Group.
Volvo Cars will use its SPA2 and SPA3 platforms for the seven vehicles for western markets. 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.
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The company’s expectations for improved profit margins would be a major turnaround compared to its full year 2025 figure of just 3.5%. Globally, the company plans to launch a total of 13 new products by 2030, with six aimed at the China market using its production relationship with Geely.
Volvo Cars President and CEO Håkan Samuelsson said, “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.” They expect to benefit from shared platforms, a software stack for China, and common parts and supply chain.
With a regionally optimized product portfolio, unique cooperation, electrification, and new levels of efficiency, Volvo Cars will build a company capable of reaching beyond 8% EBIT margins. It plans to achieve additional savings from its links with Geely for hardware sourcing in Europe and China.
