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Volvo lays out road map to double sales by 2025 

Volvo Cars has set itself new targets aimed at doubling sales and boosting  profits by 2025 as the premium car maker grows its stake in new segments and technologies.
By 2025 the Swedish company, which is owned by Chinese automotive business Geely, wants half of all the cars it sells to be fully electric and a third of the total to have self-driving capabilities.
Volvo also aims to grow the amount of cars in its range that it offers on a subscription basis to 50pc under its “Care” programme.
Under this system customers pay a set monthly fee over for a two-year contract, and get a car, insurance and breakdown assistance while Volvo also covers all maintenance.
“Our customers’ expectations are changing rapidly,” said Hakan Samuelsson, president and chief executive, and who has previously compared Care to how people buy mobile phones.  
Volvo lays out road map to double sales by 2025 

Volvo boss Hakan Samuelsson has set demanding targets for the car business

Credit:
TT NEWS AGENCY
“This means that Volvo Cars is also changing rapidly. These initiatives will help transform Volvo from being purely a car company to being a direct consumer services provider.”
Under the plans, Volvo hopes to create 5m “direct consumer relationships” by 2025, implying that sales will almost double. Last year Volvo sold 571,000 cars globally.
The company is also aiming to increase its profitability, “bringing it in line with other premium car makers”, such as BMW and Mercedes, at approaching 10pc, up from the current profit margin of 6.4pc reported in the last quarterly figures.
To do this, Mr Samuelsson said that Volvo would continue to tap into the new segment of providing cars for ride-hailing services, which are trialling self-driving systems. In the autumn, Volvo said it had agreed a deal to sell up to 24,000 of its large XE90 SUVs to Uber.
Volvo lays out road map to double sales by 2025 

The Volvo badge has enjoyed a resurgence under the ownership of China's Geely

Credit:
Reuters
Profitability will also be driven by Volvo working with other car businesses in the Geely group, such as Lynk & Co and Polestar, the recently reborn premium electric brand. A combination of shared R&D, procurement and economies of scale is hoped to boost profits.
Volvo has boomed since being bought by billionaire Li Shufu’s Geely group in 2010, last year delivering annual revenues of 210bn Swedish kroner (?18bn) and a profit of ?942m.
Speculation is growing that the company could be floated but the strong financial performance has more than repaid the $1.8bn price Mr Li paid when he bought Volvo from Ford in 2010. The billionaire is understood to be happy to retain Volvo unless it gets a $30bn market valuation.
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