Volvo Cars hosted its major investor event in Stockholm today, outlining a clear and forward-leaning strategy for building a stronger, more profitable company in the years ahead. The event, streamed live online, showcased how Volvo plans to strengthen its financial foundation, accelerate electrification, and sharpen its global competitiveness.
At the core of Volvo’s long-term plan is a goal to deliver an EBIT margin above 8%, maintain strong positive cash flow, and continue expanding through electrified growth.
Electrification as the Engine of Growth
“Electrification isn’t a challenge — it’s our biggest opportunity,” said President and CEO Håkan Samuelsson as he opened the presentation. He emphasized that the global shift toward electric mobility plays directly into Volvo’s strengths, particularly as the company aims for a fully electric lineup.
Samuelsson also highlighted Volvo’s strategic advantage in its relationship with Geely. The partnership allows Volvo to share technology, sourcing, and development costs — a key benefit in what he described as a “hypercompetitive industry.”
EX60: Volvo’s Next Big Step Into the Electric Market
One of the presentation’s biggest highlights was the announcement of the upcoming EX60, a highly anticipated mid-size electric SUV that will debut in January 2026. Built on Volvo’s new SPA3 platform, the EX60 enters the world’s most competitive and highest-volume vehicle segment.
Volvo expects the EX60 to significantly increase its global market presence and electric-vehicle share. The company describes the model as a “game-changer” — not only in performance and features, but also in cost efficiency and price positioning.
Cutting Costs, Boosting Efficiency
Chief Financial Officer Fredrik Hansson outlined the “building blocks” Volvo believes will drive long-term profitability in an electrified era:
- Lower variable costs through expanded hardware sourcing in partnership with Geely
- Reduced indirect costs, supported by a unified software platform
- Structurally lower investments now that major EV-related capital expenditures are nearing completion
Volvo is particularly focused on software. The company plans to extend its software-defined vehicle architecture — currently powering its fully electric models — to future hybrid models as well. This move is expected to unlock even more efficiencies and reduce long-term operational complexity.
Volvo also reaffirmed the impact of its SEK 18 billion cost and cash action plan, which includes strict spending discipline and smarter resource allocation.
A More Regional, Customer-Driven Business Model
The company’s updated strategy also emphasizes regionalized offerings — tailoring products and pricing to better match the needs of different global markets.
In addition, Volvo is rolling out a more customer-centric commercial model. The goal is to make the brand more accessible and appealing while lowering marketing and acquisition costs. This includes a more flexible, modern approach to sales and a refreshed marketing strategy designed to draw more consumers to the Volvo brand.
Looking Ahead
Volvo Cars’ 2025 Strategy Update illustrates a company that is both realistic about industry pressures and confident in its path forward. With major investments nearly completed, a renewed focus on electrification, and cost efficiencies driven by its partnership with Geely, Volvo is positioning itself to compete strongly in an evolving automotive landscape.
The full strategy event will be streamed live today between 9:00–12:00 CET. and will be livestreamed online here.
