June 11, 2018—Volvo on Thursday laid out plans to increase sales and boost profitability by 2025 by offering a broader range of vehicles and selling more to autonomous ride-hailing companies.
The OEM said it is planning for half of all sales annually to come from fully electric vehicles, and one third of all vehicles to be sold to be autonomous driving cars, according to a report by marketwatch.com. Additionally, roughly half of all Volvo vehicles sold will be under its new subscription service.
Volvo said it hopes to build over 5 million direct consumer relationships by 2025, aided by its Care by Volvo subscription service, because, according to CEO Hakan Samuelsson, “customers’ expectations are changing rapidly.”
The automaker also expects to benefit from lower procurement costs, shared development costs, and economies of scale alongside Polestar, its performance EV brand, and Lynk & Co., the new car brand which Volvo owns 30 percent of.
