Volvo Cars sees record-breaking year in 2023

By Ovunc Kutlu and Alexandra Enberg

ISTANBUL (AA) - Volvo Cars announced Thursday it had a record-breaking year in 2023 and reported its highest full-year retail sales, revenues and operating profit in its history.

The Swedish multinational vehicle manufacturer said sales climbed to an all-time high of 708,716 cars, which pushed revenues up 21% to SEK 399.3 billion ($38.24 billion) in 2023.

The company saw operating an profit of SEK 25.6 billion in 2023, which marks an increase of 43% compared to 2022, according to a financial results statement.

CEO Jim Rowan said 2023 was "a key milestone in our transformation journey."

"We delivered a record-breaking year on many levels, reporting the highest retail sales, revenues and profits in our company’s 97-year history. We also took several significant steps forward in our ongoing transformation, while navigating a complex external environment," he said.

The company sold 113,419 fully electric cars in 2023, a gain of 70% from 2022, which represents 16% of its global sales volume. The company said it increased its global electric market share by 34%.

With strong financial results, Volvo Cars' stock price soared 28% on the Stockholm Stock Exchange at 1538CET.

Polestar's shares, on the other hand, plummeted more than 11% Thursday, while it is down 83% since June 2022 when it went public.

The firm announced that it is evaluating a potential adjustment to its shareholding in subsidiary Polestar Automotive, manufacturer of electric vehicles, which may result in Geely Sweden Holdings becoming a significant new shareholder.

China's automotive company, Geely Holding, has a majority ownership in Volvo, which bought Volvo Cars from the Ford Motor Company in the US in 2010 for $1.8 billion.

"Geely will continue to provide full operational and financial support to Polestar going forward," said the statement. "As a result Volvo Cars will no longer provide further funding to Polestar."

"Volvo Cars’ and Polestar’s strong operational collaboration across R&D, manufacturing, after sales and commercial continues to the benefit of both companies," it added.