The Swedish automaker hit record sales last year, but it plans to grow further by reaching 800,000 sales by the end of the decade.
Volvo reported sales of 503,127 units for 2015, marking the first time it has overpassed more than half a million cars in the company’s history. The automaker’s last year sales record, mostly boosted in the later stages of 2015, was mainly due to the launch of the new XC90 SUV. But Volvo has higher objectives, targeting 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. The Chinese market is a crucial one for Volvo’s ambitious goal and the company aims to drive its growth not only through its SUVs, but also through its smaller cars. The development of the new modular platform for the compact models is being completed at Volvo’s Technical Center in Gothenburg, Sweden, and it will be shared with its Chinese parent company, Geely Motors, Lex Kerssemakers, president and chief executive officer of Volvo Cars USA, recently said.
“We had the expertise in Gothenburg, but the modular architecture, which will support several different models in the future, will be shared with other Geely’s growing automotive empire,” he said. Kerssemakers believes the upcoming smaller cars will elicit greater interest from the customers as they will feature more advanced technologies. “We have small cars now, the S40 and V40,” he added. “But the new small car platform will incorporate the latest advances in emissions, autonomous driving and accident-free driving that are part of Volvo’s strategic vision.”