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Volvo Cars increased its net profit by 37% in 2017

Automotive News

Launches the new XC40, an all-rounder of the compact segment, with the “Careby Volvo” program, a way to use the vehicle with a monthly flat rate
Volvo Cars increased its net profit by 37% to reach 1,033 million euros, after increasing its global sales by 7% and reaching 571,577 units. Its operating profit was 1,425 million euros, with a 27.7% growth compared to the 2016 data. If the 2017 has been very good, the beginning of 2018 is even better, with a sales increase of 22, 4% until reaching 43,439 registered vehicles. With the launch of the XC40, its new compact all-rounder model, the forecasts of the Swedish brand are very optimistic.

Since the acquisition of the Swedish brand by the Chinese company Geely, Volvo’s sales are growing steadily year after year and each day are closer to the 800,000 annual units expected by Hakan Samuelson, the company’s president. For this, it has a completely renewed model range that starts with the XC90, an all-rounder that was launched on the market in 2015 and that launched the new modular platform. After this model came the sedan and family variants, the S90 and V90, and in 2016 the second model of the new Volvo, the new XC60 was launched.

Now comes the XC40 market, the third Volvo model and the most important for its sales volume. In the coming months it will be on sale in Spain and in the main markets of the brand in the world. It is a compact vehicle, with the unmistakable Nordic style. A model that is situated in the premium compact SUV segment, to compete with cars such as the Mercedes GLC or the new Jaguar e-Pace.

The new Volvo bets for the important changes that come to the automotive sector. Therefore, in addition to introducing plug-in hybrid versions in all its models, and having already a brand, Polestar, which will be responsible for the production and distribution of 100% electric vehicles, also bets on new ways of ‘selling’ cars.

With the new XC40 comes to the market ‘Careby Volvo’, an innovative subscription service with which having a vehicle will be as easy, clear and simple as having a phone: a national monthly flat rate previously negotiated that will also give right to the delivery of a new vehicle every 24 months.

After placing your order online, Careby Volvo customers can take their new Volvo without worrying about any of the usual extras, such as payment of the ticket, insurance, taxes, maintenance costs or differences related to the geographical area or age. the client’s. In addition, depending on regional availability, Careby Volvo will offer digital concierge services such as refueling, cleaning, collection for maintenance or delivery of purchases made by e-commerce in the vehicle itself.

Another important aspect of “Careby Volvo” is that customers can share their vehicle with their family and friends thanks to a new digital key technology. This sharing function comes standard for all customers of this innovative Volvo service, currently only available for the new XC40.

Careby Volvo brings another more modern way to access the car. Consumers have become accustomed to paying a flat rate for all kinds of services, and with this new program the car also becomes a service with its flat rate per use. It is the modern alternative to the traditional process of buying and owning a vehicle, which for new users can seem quite complicated and expensive.

Careby Volvo is a concept that is launched with the new XC40, but that will be developed and expanded for other models and also with new services. The fundamental objective is to offer customers an easy access to the feeling of freedom that a vehicle provides, to provide customers with a very simple premium user experience, without any complications due to maintenance or insurance. With a fixed monthly fee, Volvo Cars offers an alternative to traditional buying or leasing that is really customer-focused.

The service will initially be available to buyers of the new Volvo XC40 in Sweden, the United Kingdom, Germany, Spain, Italy, Norway, Poland and the United States. The rest of the markets will later join this ambitious project.

The CONFIDENTIAL- Carlos Cancela – 12.02.2018 (Translation Soft)

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