Volvo Car Group plans to fully revamp its model range in the next five years to turn around its fortunes United States and sell over 100,000 cars annually in the country. The carmaker has seen its sales jump 16 months in a row thanks to strong demand in China and more modest growth in Europe. Volvo, however, continues to suffer in the US, where its sales have been dropping in the past decade.
The now Chinese-owned Volvo said it expected to achieve its sales target "in the medium term" and sought to dispel concerns about its future in the US. Volvo chief executive Hakan Samuelsson expressed confidence that Volvo can compete with a more focused offering and with just one core engine family. "Volvo is in the US to stay.
Not only will we stay, we will prosper," Samuelsson said in a statement. He noted that the carmaker used to sell over 100,000 cars annually in the US. He remarked that Volvo’s initial aim would be return to that sales level and eventually surpass it in the longer.
The carmaker is forecasting sales of around 60,000 in the US this year. It is trying to sell enough vehicles globally that would allow it to support the billions of dollars in investment in new vehicles that would be vital in surviving and staying afloat in the auto industry. The last time Volvo sold over 100,000 cars in the US was in 2007.