Volvo Car Group trebled its operating profit for 2015 to SEK6.62bn (approximately R12 billion) compared to SEK2.128bn (~R3.9bn) for the same period in 2014. Revenue for the year was SEK164 043m (~R299m), up from SEK137 590m (~R251m) in 2014.

The company also reported an all-time sales record of 503 127 cars in 2015, the first time it has sold more than half a million cars in its 89-year history, boosted by the introduction of its new 90 series cars and strong sales of existing models.

“I am pleased to report that 2015 was a year of record sales and trebled profits,” says Håkan Samuelsson, President and Chief Executive. “Now, with a successful 2015 behind us, Volvo Cars will enter the next phase of its global transformation. Once completed, Volvo will be a truly global premium car company.”

Volvo is implementing a SEK75bn (~R137bn) transformation programme as part of its long term strategic ambition to establish itself as a global premium car maker. Driven by the complete renewal of its product range, Volvo is aiming to almost double sales to around 800 000 cars a year in the medium term.

In 2015, the company made significant progress in achieving this goal.

Production of the new XC90 started and the end-of-year order intake of over 88 000 XC90s far surpassed initial targets for the model. The start of production also meant the introduction of a third shift at the Torslanda plant in Sweden and more than 1 500 new manufacturing jobs.

In the first half of the year, Volvo also incorporated its three joint venture operations in China, thereby taking control of the operations and providing a more accurate financial and operational picture of the company.

In the second half of the year, construction started on Volvo’s new manufacturing facility in South Carolina in the United States. The facility represents an investment of around USD500m and will be operational as of 2018. The new plant means Volvo will be able to build and sell cars in each of its three core regions, highlighting its global aspirations.

In December 2015, Volvo revealed its new S90 premium sedan to wide acclaim at an event in Gothenburg. The S90 is the second new model on Volvo’s modular Scalable Product Architecture (SPA), and is followed in February 2016 by the new V90 estate.