Chinese-owned Volvo Car Group said on Wednesday a sweeping overhaul of its model range over the next five years would propel its long-suffering sales volumes in the United States back above 100,000 cars per year.
Strong growth in China and more modest gains in Europe have helped Volvo grow sales for 16 straight months. However, turnover in the United States, once its biggest market but now eclipsed by China, has been eroding over the past decade, Reuters reports.
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.
Volvo, bought by Zhejiang Geely Holding Group Co. from Ford Motor Co. in 2010, said it expected to reach its sales target “in the medium term” and sought to dispel doubts it had a future in the vast U.S. market.
“Volvo is in the U.S. to stay. Not only will we stay, we will prosper. We sold over 100,000 cars a year in the U.S. in the past. Our initial aim is to get back to that level and in the longer term surpass it,” Samuelsson said in a statement.
Volvo, which expects to sell only about 60,000 cars in U.S. this year, is seeking to generate enough global sales to support the billions of dollars in investment in new vehicles needed to remain viable in a cut-throat car industry.