This is what Volvo will do to become more profitable

Electrification is the future

According to Volvo chief executive Håkan Samuelsson, electrification not only offers new opportunities, but is at the heart of Volvo’s future growth. “In a very competitive industry, our unique relationship with Geely is an important advantage,” Samuelsson said. “It helps us create a more favorable cost structure and develop regional models that better fit local markets.”

New electric SUV on the way

A key element in that strategy is the upcoming Volvo EX60, a midsize SUV to be unveiled in January 2026. Built on the new SPA3 platform, the model represents Volvo’s electric offering in a globally important segment. With the EX60, the brand aims to increase its market share in the mid-size electric segment and improve profitability.

Cost reduction and cooperation with Geely

Finance Director Fredrik Hansson emphasizes that lower variable costs and shared hardware with Geely are the basis for profitable growth. Intensified joint purchasing and shared technology should reduce the cost price of future models. Indirect costs will also be reduced, including through wider use of Volvo’s software platform, which will also be used for hybrid models in the future.

Strict financial discipline

Volvo is also pursuing a tight cost policy, coupled with an action plan worth SEK 18 billion, or EUR 1.638 billion. Major investments in new technology and infrastructure are nearing completion, which may reduce the level of investment over time.

Regional approach and customer-oriented sales

The strategic direction is further supported by a stronger regional focus. Volvo wants to better tailor its offering to the needs in different markets. At the same time, the sales model is being renewed, with more emphasis on direct customer relationships and more efficient marketing. This should lead to greater brand awareness at lower costs.