Geely controlled Volvo Cars said it had a record breaking year in 2023 and today reported the highest full year retail sales, revenue and operating profit in its 97 year history.

Sales of a record 708,716 cars boosted revenue 21% year on year to SEK399.3bn for full year 2023.

Operating profit, excluding joint ventures and associates, rose 43% to SEK 25.6bn while operating margin, also excluding JVs and associates, rose to 6.4% from 5.4% in 2022.

The automaker said the 2023 results "demonstrate Volvo Cars' ability to maintain premium pricing throughout the year, as well as solid demand for its cars and a robust order book, despite ongoing market turbulence".

Volvo sold 113,419 fully electric cars in 2023, up 70%, accounting for 16% of its total global sales while its share of the global electric market rose 34%.

Gross profit margins on electric cars quarupled to 13%. High lithium prices heavily affected 2022 margins but the company saw a clear uptick in the underlying profitability of these cars from the second half of 2023 as lower lithium prices and the effects of increased pricing materialised. The company also benefited from efficiencies from its own investments.

Polestar

The automaker said its focus was now on developing Volvo Cars and "concentrating our resources on our own ambitious journey". It was "evaluating a potential adjustment to Volvo Cars' shareholding in Polestar, including a distribution of shares to Volvo Cars shareholders. This may result in Geely Sweden Holdings becoming a significant new shareholder".

Geely would continue to provide full operational and financial support to Polestar and Volvo Cars would no longer provide further funding to Polestar.

"We will, however, extend the repayment period for the existing convertible loan by 18 months to the end of 2028," Volvo said.

Collaboration across R&D, manufacturing, after sales and commercial would continue.