Volvo Cars held its virtual Capital Market Update, livestreamed from Milan, on June 8, 2023.
The update followed the successful reveal of the new, fully electric Volvo EX30 small SUV, which comes at an attractive price and will take Volvo Cars into an exciting new market segment.
During the Capital Market Update, Volvo Cars’ leadership provided more granularity on the Volvo EX30’s contribution to the company’s growth and profitability ambitions. Volvo Cars executives elaborated on how the Volvo EX30, one of the company’s most significant business opportunities in the coming years, will serve as a building block for the company’s strategic transformation.
The company provided further colour on the execution of its commercial transformation, starting in the United Kingdom, which will be the first market to switch to a fully integrated online/physical, direct-to-consumer model this year. It also talked about the transformed sales process, which will result in an improved customer experience by seamlessly merging online and offline channels, and its implications for the company.
Finally, Volvo Cars described the journey towards its mid-decade ambition of reaching an operating profit margin of 8-10 per cent. During this session the company elaborated on key factors influencing profitability, including the cost of electrification, the leverage from future growth on indirect costs, cost efficiencies, synergies, and income from affiliates.
SOURCE: Volvo Cars