Volvo Cars today outlined its strategy at an investor event in Stockholm. During the event, the company’s management team will present how it is structurally building a company towards a long-term EBIT margin of over 8 per cent, strong positive cash flows and growth through electrification.
An essential enabler for electrified growth is the upcoming EX60 mid-size SUV, slated for reveal in January 2026 and based on the new SPA3 product architecture.
The EX60 is Volvo Cars’ electric entry into the most critical segment globally, enabling the company to increase its addressable market and electric market share substantially. The company is confident that the coming EX60 is a game-changer in terms of price, performance and cost.
“Electrification is an opportunity for us and the main driver for growth,” says Håkan Samuelsson, President and CEO for Volvo Cars. “In a hypercompetitive industry, our unique relationship with Geely is also a strong asset for creating a better cost structure and developing attractive regional cars.”
The continued reduction of variable costs through intensified joint hardware sourcing, in collaboration with Geely, will result in lower costs in the coming years.
Volvo Cars will also benefit from structurally reduced indirect costs, including through an expanded use of the software stack powering all its software-defined cars. By extending this to hybrids in future, this unlocks further efficiencies.
Additionally, stringent cost discipline following its SEK 18 billion cost and cash action plan will further support profitability. The company is finalising significant investments in new technology and infrastructure, allowing it to reduce investments to an affordable level.
The direction is supported by Volvo Cars’ regionalised approach and commercial strategy, which offers competitive and adapted solutions for each region.
Additionally, Volvo Cars’ new customer-centric sales model and marketing approach are expected to attract more customers to the Volvo brand at lower costs.
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