Key Points

• Volvo's 2023 deliveries reach 708,000 cars, generating SEK 399.3 billion ($38.37 billion) in revenue.
• Profit surges 43% to SEK 25.6 billion ($2.46 billion) with an operating margin of 6.4%.
• Volvo reports a surprising 70% increase in EV deliveries, constituting 16% of total global sales.
• The company enhances its EV market share by 34% compared to 2022.
• Volvo considers adjustments to its Polestar shares, transferring ownership to Geely Sweden Holdings and discontinuing further funding to Polestar.
• Volvo's strategic focus on becoming fully electric by 2030 contributes to its EV growth.
• Flexibility in product offerings, including hybrid variants, allows Volvo to cater to different segments of the market.
• Polestar undergoes restructuring, with Volvo reducing its ownership stake and Geely Sweden Holding assuming main ownership responsibility.
• Despite ownership changes, Volvo and Polestar will continue collaboration on engineering and share retailer networks.

Volvo Cars, owned by China's Geely, has reported robust financial performance, marked by a surge in deliveries to 708,000 cars in 2023. The company achieved SEK 399.3 billion ($38.37 billion) in revenue, reflecting a substantial 21% increase from the previous year. Profits soared by 43%, reaching SEK 25.6 billion ($2.46 billion), resulting in an improved operating margin of 6.4% compared to 5.4% a year ago.

A notable highlight contributing to Volvo's success is the unexpected 70% surge in Electric Vehicle (EV) deliveries throughout 2023, accounting for 16% of the total global sales. This growth in EV market share, increasing by 34% compared to 2022, defies the challenges faced by other automakers in the EV segment.

Volvo's commitment to becoming a fully electric company by 2030 has been a driving force behind its structured investments in the EV space. The company's focus on the premium end of the EV market, coupled with its ability to offer hybrid variants for most vehicles, has positioned it favorably. Despite discussions around softening EV margins and demand, Volvo's unique approach and product flexibility have contributed to its exceptional performance.

Also read: Hertz Adapts Strategy, Shifts to Sell EVs, Including Teslas

Simultaneously, Volvo announced strategic changes regarding its ownership stake in Polestar, a pure EV brand in which Volvo holds a majority stake. The company is considering adjustments to its Polestar shares, transferring ownership responsibilities to Geely Sweden Holding. As part of this restructuring, Volvo will cease further funding to Polestar, allowing the latter to seek financial support through Geely Sweden Holding.

Despite the ownership changes, Volvo and Polestar will maintain collaboration on engineering for their next-generation vehicles. Both companies will continue building cars at Volvo's factory in South Carolina and share some retailer networks, ensuring a synergistic relationship moving forward.

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