Volvo Car (VOLCAR) Investor Update summary

Strategic direction and transformation

• Focus on electrification, regionalization, and profitability to address industry challenges and secure long-term growth, leveraging a unique partnership with Geely for regional competitiveness.

• Electrification is a major opportunity, with plans to offer BEVs across all key segments and bridge products for markets not yet ready for full electrification.

• Regionalization empowers local markets (Americas, China, Europe) to adapt products and operations, while maintaining a strong global brand and building where sales occur.

• Deepening collaboration with Geely enables access to scale, cost advantages, rapid innovation, and unique synergies in hardware, supply chain, and technology.

• Hyper-competition is addressed through cost discipline, modularity, and leveraging synergies with Geely.

Product and commercial strategy

• Launch of the EX60 mid-size electric SUV will expand addressable BEV market from 25% to 75%, targeting the largest and fastest-growing segment.

• Product lineup includes BEVs and advanced PHEVs, with new generation plug-in hybrids offering BEV-like experience and a backup engine.

• Pricing for new BEVs like EX60 will match current PHEV price points, aiming for better margins and customer affordability.

• Commercial transformation includes simplified offerings, transparent pricing, online and instant delivery options, and AI-supported configurators.

• Marketing will shift to targeted, digital-first strategies, reducing spend per car by up to 20% and improving conversion rates.

Technology and cost competitiveness

• SPA3 platform enables scalable BEV architecture with modular battery packs, mega casting, and integrated thermal systems.

• One-track software development unifies all new models, reducing complexity, cost, and enabling faster updates and feature rollouts.

• Vertical integration and horizontal optimization in engineering drive significant cost reductions and product improvements.

• Collaboration with Geely includes joint supplier panels, shared modules, and best practice exchange, targeting 2%-3% EBIT improvement from cost synergies.

• Resilience and agility in supply chain are enhanced through shared sourcing strategies and regionalized production.