Volvo is aiming to almost double sales by 2020, bringing the total to 800,000 units per year. The company plans on doing this by expanding its operations in Europe and, especially, in China.
Zhejiang Geely Holding Group Company bought Volvo off Ford earlier this year for $1.8 billion, but disagrees with these plans. President of Geely Holding, Li Shufu, wants Volvo to expand its range to include larger luxury vehicles to rival the German offerings, such as the Mercedes-Benz S-Class and the BMW 7-Series.
On the other hand, chief executive officer of Volvo, Stefan Jacoby, recently said at the Los Angles Auto Show,
“If we play our cards right, I can imagine selling 800,000 by 2020.”
This figure is more than double of what the company currently sells – around 380,000 per year. But Jacoby has different plans to ramp up sales. He says Volvo’s current market isn’t interested in large cars, and wants the company to keep making small, fuel efficient models.
The company will expand manufacturing in China, and plans to open up two new assembly plants and expand a third plant in China. The Chinese market has bought 22,700 vehicles so far this year.
Jacoby, a previous Volkswagen employee, says Volvo will announce its production facility plans in the next four weeks.