As we look ahead to 2023, Volvo Cars acknowledges that there may be further challenges to come. However, the company is optimistic that the COVID-related supply shortages from China are now behind us and there is a steady improvement in the supply of semiconductors. Additionally, Volvo Cars anticipates a decline in the price of lithium towards the end of the year, as many independent reports suggest.
Despite the global turbulence and uncertainty, Volvo Cars continues to experience strong demand for its cars. To counteract the increased costs, the company has reinforced its cost and efficiency optimization plan, aiming to better utilize and optimize its resources. As uncertainty and volatility are the current business realities, creating a cost-aware culture is key for future success.
Building on the acceleration of the company’s strategic journey in 2022, 2023 will be a pivotal year as Volvo Cars further accelerates its transformation path. The company will launch a new small fully electric SUV, expand into direct consumer-facing in the UK, and start production of the Volvo EX90. The joint venture company with Northvolt, NOVO Energy, will also take a crucial step towards sustainable battery technology with the start of construction of one of Europe’s largest battery cell plants in Gothenburg.
Volvo Cars expects solid double-digit growth in retail sales, as long as there are no unexpected supply chain disruptions. The company is committed to increasing its volumes for fully electric cars, with the full year share expected to surpass last year’s 11 percent. Jim Rowan, CEO of Volvo Cars, stated, “We have demonstrated in 2022 that we have turned up our execution engine. This will continue to deliver in 2023.