Volvo expects further growth this year, after record profit in 2015 image

After it reportedly trebled operating earnings in 2015 due to record sales, the Swedish brand sees its figures growing further this year.

Volvo, owned by China’s Geely, reported an all-time sales record of 503,127 cars in 2015, the first time it has overpassed more than half a million cars in the company’s history. The Gothenburg-based company’s last year achievement, mostly boosted in the later stages of 2015, was mainly due to the launch of the new XC90 SUV. After such a sales hit, Volvo announced this week that the full-year operating earnings rose to 6.62 billion Swedish crowns (776.6 million dollars) from 2.13 billion in the previous year. The strong sales rose the revenues to 164.0 billion crowns from 137.6 billion in 2014 while a slowdown in China was more than offset by growth in other markets. The company said in a statement it saw growth in all its main markets, China, Europe and the United States, underpinning what would be third straight year of record sales in 2016. To support a further growth, Volvo is investing 75 billion crown for the development of new models, as part of its long term strategic ambition to establish itself as a global premium car maker.

With global sales of 33,761 cars for the first month of the year, Volvo has begun 2016 in good spirit, marking a 9.4 percent increase over a year earlier. The automaker targets to reach sales of 800,000 units annually by 2020. And the plan is already put in motion, as the Swedish brand has built two new plants in China and started construction of a new facility in the US, which is scheduled to start making cars in 2018.