{"id":29367,"date":"2024-09-05T06:29:00","date_gmt":"2024-09-05T06:29:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/4498857_AE98857_0"},"modified":"2024-09-05T06:29:00","modified_gmt":"2024-09-05T06:29:00","slug":"volvo-cars-adjusts-core-business-ambitions-for-2026-and-beyond","status":"publish","type":"post","link":"https:\/\/transmediavictoria.net.au\/?p=29367","title":{"rendered":"Volvo Cars adjusts core business ambitions for 2026 and beyond"},"content":{"rendered":"

GOTHENBURG, Sweden<\/span>, Sept. 5, 2024<\/span> \/PRNewswire\/ — Volvo Cars has adjusted its core business ambitions for the coming years, reflecting the company’s relentless focus on value creation while remaining pragmatic amidst fluid market conditions.<\/p>\n

The adjusted business ambitions are revealed ahead of Volvo Cars’ Capital Markets Day which takes place in Gothenburg, Sweden<\/span> today. During the day, Volvo Cars will reveal details of its value creation approach, technology roadmap and product plan for the coming years.<\/p>\n

Rather than aiming for an absolute revenue target, Volvo Cars’ ambition is now to continue outgrowing the premium car market until 2026, as it has done in recent years.<\/p>\n

Given the increased complexity especially in relation to global trade and tariffs, the company also aims to achieve an EBIT* margin of 7-8 per cent for the full year in 2026.<\/p>\n

In terms of free cash flow generation, Volvo Cars continues to aim for cash flow neutrality in 2024 and 2025, followed by a strong free cash flow from 2026 onwards. From 2026 onwards, Volvo Cars expects to benefit further from its current investment phase through higher profitability and stronger free cash flow.<\/p>\n

The adjusted revenue and EBIT margin ambitions follow on yesterday’s announcement around Volvo Cars’ revised electrification ambitions. The company now aims for 50-60 per cent of its global sales by 2025 to consist of electrified cars, so both plug-in hybrid and fully electric models.<\/p>\n

By 2030, it expects electrified cars to represent between 90-100 per cent of global sales volumes. The remaining 10 per cent will allow for a limited number of mild hybrid models to be sold, if needed.<\/p>\n

These adjusted electrification ambitions also lead to new CO2<\/sub> reduction ambitions, which remain leading for the automotive industry. Volvo Cars now aims to reduce its CO2<\/sub> footprint per car by 30-35 per cent by 2025 versus a 2018 baseline, which is an important step towards a CO2<\/sub> reduction per car of 65-75 per cent by 2030.<\/p>\n

The company will continue to work together with its suppliers to bring down emissions from materials and from its operations, including its supply chain and logistics networks.<\/p>\n

For more information on the company’s adjusted electrification ambitions, read here.<\/a> <\/p>\n

The company continues to retain the potential for shareholder distribution once its current investment phase is concluded. More details will follow closer to that point in time.<\/p>\n

“Volvo Cars stands at a pivotal and exciting crossroads in our journey. We have been laying the foundations for the last few years that put us in the strong position we are in today,” <\/i>says Jim Rowan<\/span>, chief executive of Volvo Cars. “The sharpened business ambitions we announce today further reinforce our commitment to drive value as a business, while remaining true to our purpose. As I have said before: business is not a game of perfection, it’s about continuous progress and adaptation.”<\/i><\/p>\n

The small print  <\/i><\/b><\/p>\n