In a Euronews interview, the CEO of Volvo Vehicles warned that 2025 could be a tricky one for the motor business. He additionally shared his views on tariffs and the event of electrical car gross sales.
The CEO of Volvo Vehicles, Jim Rowan, instructed Euronews that the group is “well-prepared however aware” that 2025 goes to be a difficult yr for the automotive business.
It comes because the sector faces ongoing headwinds, together with provide chain disruptions, because of semiconductor shortages, greater rates of interest and costs curbing client demand, declining EV gross sales – in addition to the specter of pending US tariffs.
“The worldwide automobile business is dealing with a number of uncertainties: cyclical, structural, transformational and geopolitical,” Rowan mentioned.
He added: “We’re monitoring developments. We are going to proceed with our long-held technique of constructing our automobiles the place we promote them, together with including EX30 manufacturing to our Ghent plant. Our full focus proper now’s on getting the manufacturing up and operating throughout the first half of this yr.”
Coping with declining EV gross sales
Germany is among the many European markets that skilled a decline in EV gross sales in 2024, after it was hit by elevated competitors from China, and the battery electrical car (BEV) subsidy programme ending. A scarcity of charging infrastructure and comparatively excessive EV costs has additionally contributed to falling gross sales.
“We’re investing in a balanced product portfolio of pure BEVs and plug-in hybrid automobiles. In 2024 we elevated our totally electrical (BEV) gross sales share to 23% of complete gross sales (versus 16% in 2023) and delivered the best EV gross sales share of all legacy premium automobile producers in 2024,” Rowan mentioned.
“We make progress on our ambition to achieve 50% to 60% electrified gross sales for the total yr 2025, reflecting all automobiles with a plug. Our electrified gross sales accounted for 46% in 2024 (versus 38% in 2023),” he added.
Sturdy efficiency regardless of headwinds
Rowan harassed that regardless of the headwinds, 2024 delivered a robust efficiency for the corporate with a document yr by way of income and volumes of automobiles bought.
Working revenue in 2024 was SEK 22.3bn (€1.9bn), up from SEK 19.9bn (€1.8bn) within the earlier yr, whereas earnings earlier than curiosity and taxes (EBIT) was 5.6% in 2024, up from 5% within the earlier yr.
“Revenues exceeded SEK 400 billion (€35.4bn) for the primary time in our firm’s historical past. On challenges, I’m notably pleased with our achievement changing into one of many few firms harnessing core computing expertise,” he mentioned.
Influence of EU laws
EU laws, particularly relating to inexperienced targets, have resulted in carmakers spending a big quantity of money and time on staying in step with requirements.
Final yr, the EU was contemplating altering its 2035 zero-emission goal for all new automobiles bought within the EU. Nonetheless, a number of European firms, together with Volvo Vehicles, urged Brussels to not change the goal as they imagine it may be met.
Laying out his imaginative and prescient for the longer term, Jim Rowan harassed: “Electrification is the only largest motion our business can take to chop its carbon footprint. The 2035 goal is essential to align all stakeholders on this journey and guarantee European competitiveness. We urge EU coverage makers to concentrate on what actions we have to take to get there, moderately than reopening laws simply agreed on.
“The EU Inexperienced Deal has laid a stable basis to curb emissions, whereas attracting long-term funding in Europe. With international EV competitors intensifying, Europe should keep dedicated to the imaginative and prescient. Policymakers should keep away from reopening laws that might undermine this progress,” Rowan instructed Euronews.
New fashions and plans for 2025
The Volvo Vehicles CEO additionally highlighted that the group is effectively ready for the hurdles forward, regardless of the headwinds.
“We’re well-prepared however aware 2025 might be a difficult yr for the business. We plan to launch 5 new and refreshed fashions.”
Rowan mentioned the group can also be ramping up manufacturing of the EX30 in Europe and getting ready for the EX60 and SPA3 platform launch.