Volvo says it is looking to double its market share to 2% in order to offer an alternative to German brands.
The Swedish automaker recently took a step along that path by revealing it would add a third shift at its Torslanda plant near Gothenburg, creating 1,300 jobs as a result.
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“It is not every day we can talk about 1,300 new jobs,” said the manufacturer’s CEO, Hakan Samuelsson, at last week’s Scandinavian automotive suppliers (FKG) Annual Forum in Gothenburg.
“Today our market share is 1% and if we have to be an alternative to German brands, we need to be twice the size with 2% market share. This year we will make 80,000 cars in China [for example]. We need to grow because our vision is [by] 2020, Volvo should be the company making 800,000 cars,”
“In the US we have challenges – we have certain indications there is light at the end of the tunnel. In Europe we are growing around 10%.”
Samulesson noted in order to reach production of 200,000 cars per year in China, local manufacture was key and next year, Volvo would start exporting vehicles from the country to the US.
“I believe we will be the first Chinese premium manufacturer exporting cars out of China,” said Samuelsson. “We will end up with around 470,000 cars [total] this year, which will be an all-time high for Volvo.”
Addressing more than 400 component producers at the Gothenburg conference, the Volvo chief noted there was “a lot to do” in the next four years with the XC90 by that time becoming the automaker’s oldest model.
“It is not just lowering cost, it is developing functionality,” said Samulesson. “We want our suppliers to help us to be even clearer about what Volvo stands for and also to be cost effective.”
“It is not enough to be big. We need to be attractive as an employer for a new generation of engineers and skilled car workers in the automotive industry.
“If we do that, we will reach 800,000 cars. We need our suppliers to help us to think the same way.”
