- Strong sales increase on all markets
- 2004 set a new corporate sales record for Volvo Cars
- Total sales reach 456,224 cars, a 10 percent increase on 2003
- USA sales reach a new record of 140,000 cars
- XC90 is the best-selling Volvo model
- 30 percent of Volvos sold are all-wheel drive
2004 was an excellent year for Volvo Car Corporation with total sales
exceeding 456,000 cars. Sales improve by more than 10 percent year on year.
What's more, 2004 sales total of 456,224 cars sets a new corporate record,
topping the previous best of 422,100 set in 2000 by more than 8 percent.
“The magic ceiling of 450,000 cars has finally been passed, and we feel that
our long-term sales goal of achieving 600,000 cars a year is finally within
reach,” says Hans-Olov Olsson, President and CEO of Volvo Car Corporation.
All the markets, with the odd exception, have done very well and
significantly increased both their sales volumes and market shares. This applies
in particular to the high-volume markets of North America and Europe.
Europe was extremely active toward year's end as Volvo Car sales increased by
30 percent.
Every third Volvo to North America (2003 sales in
brackets)
Almost one-third of all Volvo cars produced in 2004 found a
buyer in North America. Total sales in the three NAFTA countries amounted to
154,000 (148,528) of which the USA accounted for a new record of 139,155
(134,620) car. This is an increase of 3.5 percent. Of approximately 140,000
Volvo cars sold in the USA, the XC90 range accounted for 28 percent or 39,630
vehicles.
Canada's sales success ran at a consistent pace with the USA at 11,135
(10,750) cars. Mexico too improved to 3356 (2721) cars.
Volvo Cars' immense success in North America is owed to the XC90. In 2005,
Volvo Car will further strengthen the XC90's market position with the release in
January of the XC90 V8.
The compact S40 sedan and V50 wagon models are also selling strongly in North
America.
Nordic markets keep market share lead
A total of 71,547 (64,705)
new Volvo cars were sold on the Nordic market. Sweden is still Volvo Cars’
second-largest market in volume terms. A major upswing during the last few weeks
of the year put total sales at 51,464 (47,928), an increase of 7.5 percent,
which resulted in the company maintaining its market share of 20 percent.
Norway accounted for the largest percentage increase of all Nordic countries,
with a sales rise of 53 percent. In terms of volume, this corresponds to 6494
(4241) cars. In Finland, 10,076 (9284) new Volvos were sold, while in Denmark
the figure is 3513 (3252).
Volvo's market share is highest in the Nordic countries: Sweden 20.1 percent,
Finland 6.8 percent and Norway 5.6 percent.
Europe fast forward
Volvo sales in all European markets moved ahead
rapidly to record and near-record results. Volvo sales in Britain exceeded
40,159 cars, a slight increase of about 3 percent. Britain is Volvo Cars
strongest European market, but Germany is not far behind.
Germany made a huge comeback after suffering a dip in 2002/2003, shooting up
more than 25 percent to 38,085 cars (30,285) despite immense competition from
the domestic German brands.
Belgium posted an incredible sales rise of more than 37 percent to 12,929
(9426) cars. France increased sales by 36.6 percent to 11,989 (8775) cars.
Other major high-volume markets are Italy with 19,390 (18,416) cars, the
Netherlands with 19,225 (16,204) and Spain with 15,925 (14,034).
In this context it is also worth mentioning Greece, where the number of Volvo
cars sold in 2004 increased by 67 percent from 1344 to 2240 – the largest single
percentage increase on any market in 2004.
Japan against the trend and Asia Pacific steady
Japan is the only
major Volvo market that bucked the upward sales trend in 2004. Negatively
affecting sales in Japan was the delayed introduction of the new S40 and V50.
Sales in 2004 totalled 13,919 (14,755), a drop of 5.7 percent.
The countries in the so-called Asia-Pacific area, Oceania and South-East Asia
have all maintained their positions without dramatic changes. The expected
upswing in China – forecast by the market as an emerging growth market – slowed
down somewhat in the second half of the year and the final result was 2609
(2516) cars.
All told, the VCAP markets accounted for 13,152 (12,065) new Volvo cars.
Volvo Car Australia reversed a falling sales trend in 2004 by posting
improved sales of approximately 4 percent with a marginal gain in market share
among the major European brands. The positive swing is significant for Volvo Car
in the European Luxury segment which retracted by 5 percent.
Undeniably, the XC90 lead Volvo Car Australia's sales reversal. Credit goes
too to the new S40 which sold in numbers above expectation, and the V50 wagon
(combined with V40) lead the compact luxury wagon segment.
VCOC growing
The other overseas markets administrated by the Volvo
Car Overseas Corporation (Central and South America, Africa, the Middle East,
the former Soviet republics and South Africa) varied considerably in terms of
volume and growth. The total figure was 16,679 (13,838) cars. The group’s
largest markets in volume are Russia and South Africa.
Russia maintained its sales volumes from the previous year with 5005 cars
(4991), and it also retained its 20 percent share of the segment. South Africa’s
4602 (3111) new cars, on the other hand, represent a massive 47.9 percent
increase.
Turkey was responsible for an even larger percentage increase. Posting 1971
units sold in 2004 is an improvement of 57.9 percent over the previous year.
Volvo Cars’ 10 largest markets in 2004:
| USA |
139,155 |
(134,620) |
| Sweden |
51,464 |
(47,928) |
| UK |
40,159 |
(39,135) |
| Germany |
38,085 |
(30,285) |
| Italy |
19,390 |
(18,416) |
| Netherlands |
19,225 |
(16,204) |
| Spain |
15,925 |
(14,034) |
| Japan |
13,919 |
(14,755) |
| Belgium |
12,929 |
(9426) |
| France |
11,989 |
(8775) |
|
XC90 – the best-selling Volvo model
Already during its second full
calendar year on the market, the Volvo XC90 became the company’s best-selling
model. A decision was taken about a year ago to increase XC90 production from
about 65,000 annually to more than 90,000. XC90 sales reached 84,032 (62,177).
Together with the recently introduced XC90 V8 Volvo Car predicts sales to
continue to climb in 2005 to exceed 100,000 units.
AWD has become a huge success for Volvo’s cars. In 2004, no less than 143,000
Volvos sold were all-wheel drive. This means that virtually one in three Volvos
sold has all-wheel drive.
New S40 and V50 models sold very well last year. More than 100,000 were
delivered to customers around the world.
The five best-selling Volvo models in 2004 are:
| XC90 |
84,032 |
(62,177) |
| V70 |
74,656 |
(83,359) |
| S60 |
73,121 |
(90,910) |
| S40 |
53,085 |
|
| V50 |
47,743 |
|
Production in 2004
Production of the previous S40 sedan and V40
wagon ceased in May at the NedCar factory in Born, Holland. Volvo Cars thus
ceased its 32-year operation in The Netherlands. The last car produced, which
incidentally was the millionth in the S40/V40 series, was a V40 that was donated
to charity.
Volvo Cars’ main production is now concentrated in the company’s two
factories in Torslanda, Gothenburg, Sweden (which celebrated its 40th
anniversary in 2004) and Ghent in Belgium, where the new S40 and V50 models are
made.
Both factories have implemented major production increases during 2004 and
will face the future with even greater production capacity. Torslanda may well
even initiate a third shift. At present, the capacity limits are 190,000 in
Torslanda and 270,000 in Ghent. The long-term goal is for each factory to be
able to handle 500,000 cars a year if demand requires.
The Uddevalla factory, where the Volvo C70 convertible is made, is now owned
and operated by a jointly owned company, Pininfarina Sverige AB, where
Pininfarina owns 60 percent of the shares and Volvo Cars 40 percent. This is
where Volvo’s next generation convertible will be manufactured.
Volvo Cars manufactured a total of 460,000 cars in 2004.
Just over every second Volvo car sold in Europe is diesel-engine powered. In
2004, Volvo Cars expanded its diesel engine range with two four-cylinder
variants with displacements of 1.6 and 2.0 litres respectively. Both
four-cylinder engines are the result of a joint development with Ford/PSA.
The Skövde engine factory announced in December that Ford Motor Co will
locate production of the four-cylinder 2-litre version there. In return, Volvo’s
six-cylinder petrol engine, previously made at the Skövde factory, will be
transferred to Ford’s Bridgend factory in Britain.
The year of the concept car successes
In 2004, Volvo Cars presented
no less than three concept models. The one to generate the most media coverage
was Your Concept Car (YCC). This car, which was planned and developed by a group
of women engineers at Volvo, was unveiled to the world at the Geneva motor show.
With its gull-wing doors and innovative technical and design solutions, YCC
created headlines around the world.
The Volvo Tandem Car, as its name suggests, places one occupant behind the
other. The unique concept was revealed at an event in May at the Volvo
Monitoring and Concept Center in California. The Tandem is a feasible future
electric-car concept for commuters in increasingly congested and environmentally
vulnerable metropolitan areas the world over.
Environmental consideration and dependable mobility for the future were also
the theme of the 3CC, a three-seat electric car with an outright sporty
character. The 3CC combined environmental suitability and safety with thrilling
design and entertaining driving properties. The 3CC was shown in connection with
the Michelin Challenge Bibendum eco-car competition in Shanghai, and it earned
five gold medals and the top prize for best design.
Product news in 2004
Concrete model news in 2004 included upgrades
of the S60, V70 and XC70 for model year 2005. Unveiling of the updated models
coincided with presentation of BLIS – a system that monitors the car’s blind
spots.
“The strength of the Volvo brand is immense and it is continuing to grow. The
respect with which Volvo Cars is met and the determination, enthusiasm and
dedication that characterises the company’s operations all help make my job one
of the most rewarding in the world,” concludes Hans-Olov Olsson.
Awards for Volvo Car Corporation
Volvo cars have been awarded many
international prizes and awards during 2004.
S40/V50
- Austria: Best Car Middle Class, Auto Revue Readers' poll
- Belgium: Lease car of the year/ overall best choice, ING Car Lease
- Germany: Goldenes Lenkrad (V50) (Golden Steering wheel) Bild am
Sonntag paper
- Italy: V50 L’Automobile più Bella del Mondo (The Most Beautiful Car in the
World) Automobilia organization and magazine
- Russia: S40 Best Buy, Vybor Za Vamy/Avtomobily Magazine
- United Kingdom: S40 Compact Car Executive 2004, Auto Express New Car
Honours
- USA: S40 El Mejor Auto de Año 2004 (Car of the Year Award), Automundo
Magazine (US Hispanic)
S80
- China: S80 T6 Gold medals for best acceleration, brakes and emission levels,
Michelin Bibendum Challenge for environmental vehicles
- USA: S80 AWD Best Sedan in Class over $30,000, New England Motor Press
Association
XC90
- Germany: Best Imported SUV, Auto Trophy of Auto Zeitung
- Malaysia: Best Large SUV of the Year 2003/2004, Autocar Magazine
(ASEAN edition)
- Middle East: SUV of the Year 2004, Wheels & Gear Pan Arabic
Magazine
- Saudi Arabia: 4x4 Award 2004, Saudi Auto Pan Arabic Magazine
- Thailand: XC90 2.5T Car of the Year Standard SUV category/ T6 Car of the
Year Luxury SUV category, Grand Prix Group
- United Kingdom: 4X4/SUV Award 2004, Auto Express New Car Honours
- USA: Best Luxury SUV of the Rockies, Rocky Mountain Automotive Press; Best
SUV in Class over $30,000, New England Motor Press Association; Best Luxury
Cross-Over SUV, Smart Money Magazine
- Sweden: Volvo Cars voted most attractive future employer
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