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Volvo Cars expects its U.S. sales to grow 5 to 10 percent this year, retailers were told at the brand’s Jan. 24 make meeting.
The automaker sold 125,243 cars and crossovers in the U.S. last year, down 2.7 percent from 2023.
Volvo Car USA and Canada President Michael Cottone said the top-line growth in 2025 will be propelled by several new and updated vehicles covering hybrid and battery-powered powertrains.
The Swedish automaker plans to deliver three new or redesigned models to showrooms in the first 90 days of 2025 — a freshened version of its workhorse XC90 crossover and a pair of new electric crossovers, including the budget EX30.
“2025 is a year of consistency …. in communications, offers, product mix, dealer standards,” Cottone told Automotive News, echoing his message to retailers at the meeting at the NADA Show. “By executing our growth strategy, bringing a renewed energy to our marketing, and focusing on operational excellence and a consistent approach, we are set up for success for this year and beyond.”
Cottone addressed a key dealer pain point: slipping profits.
Volvo Retail Advisory Board Chairman Kevin Flanagan told Automotive News before the NADA Show that retailer profitability dipped to 2 percent last year from 3.1 percent in 2023. Gross profit per vehicle last year fell by more than 2 percent.
Cottone said “consistent programs and offers and strong marketing,” coupled with fresh products, will help lift dealership throughput and profitability.
Retailers also have expressed concern about rising days’ supply as Volvo’s aging small electric crossovers take longer to move. Sales of its electric models sank nearly 60 percent to just 5,608 last year.
“We understand [inventory] impacts retailers immensely,” Cottone said. “We worked with our retailer advisory board to improve floorplan support [and] we now have a mutual goal … that puts the onus on us to maintain certain levels that optimize throughput.”
Volvo made a late pivot from its EV-or-bust strategy last year. Volvo is updating its mild-hybrid and plug-in hybrid XC90 and XC60 with energy-efficient, high-density electric motors and more advanced batteries.
“This level of nimbleness and flexibility is what makes Volvo such a great franchise to own,” Cottone said, noting that it’s the No. 1-selling premium PHEV brand in the U.S.
Plug-in hybrid sales soared nearly 70 percent last year to 37,294 as Volvo ramped up supply and marketing.