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Business / Auto China

Volvo vows to boost profit margin to complete revamp of company

(Xinhua) Updated: 2016-03-02 11:14

STOCKHOLM - The chief executive of Volvo Cars on Tuesday stressed that his company needed to double its operating profit margins as it seeks to complete its transformation into a global car brand in the premium segment.

The auto maker's operating profit margin of 4.0 percent in 2015 was only half that of the company's competitors, CEO Hakan Samuelsson said in a statement.

"Volvo's transformation is nowhere near complete. The company's revitalization has been effective so far, but work remains to be done and we are entirely focused on the future," Samuelsson said.

Volvo's ongoing transformation plan is expected to cost the company $11 billion, the company said, with the next phase including the introduction of larger models in its sedan and sports utility vehicle (SUV) series.

Over the next few years, Volvo said it would "position itself as a leading global maker of electric vehicles" with the aim to develop an all-electric car by 2019.

The Chinese-owned car maker has vowed to reach annual sales of 800,000 cars in the "medium term," having sold some 500,000 last year.

Volvo confirmed plans to bring a test facility for self-driving vehicles in the western Swedish city of Gothenburg into operation by 2017, with 100 customers using assisted driving technology in everyday situations.

"We have stated that by 2020 no one should be seriously injured or killed in a new Volvo car. Autonomous driving is one key path to achieving this vision," Samuelsson said.

Owned by Geely since 2010, Volvo employs nearly 29,000 people globally.

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