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Volvo Car Corporation Increased in 2003 - Success for the Volvo XC90 and a record year in the USA

21. January 2004

• 2003 was a successful year for Volvo Cars, thanks primarily to record sales in the USA and huge demand for the Volvo XC90.
• Total sales amounted to 415,046 cars, an increase of 2.2 percent compared with 2002.
• Sales in North America increased by 21 percent to 148,528 cars, while Europe dropped back by 6.5 percent, largely owing to the difficult market situation in Germany.

During its first full year on the market, the Volvo XC90 was the biggest attention-grabber of the entire Volvo Cars model range. Sales of the XC90 totalled 62,177 cars, and demand for this model is so great that the company has now decided to increase the annual production rate to 90,000 cars.

Another positive development is that the success of the Volvo XC90 has not come at the expense of the Volvo XC70, which held its own compared with 2002. The best-selling model in the range for the past three years is the Volvo S60, with sales totalling 90,910 cars in 2003 (2002:107,463).

Fourteen consecutive months of climbing sales in the USA
Although the overall market shrank, Volvo Cars had its best-ever year in the USA. After fourteen straight months of steadily improving sales, 2003 ended with deliveries of 134,620 cars, an increase of 22 percent over the year before. As expected, the bestseller was the Volvo XC90, accounting for 35,791 cars sold.

In Europe, sales shrank by 6.5 percent to 221,632 cars (2002:236,951). 

In Sweden, which is Volvo Cars’ second-largest market, sales dropped slightly by 1.5 percent to 47,928 cars. However, Volvo nonetheless maintained its market share of just over 19 percent, with the Volvo V70 leading the sales league with 23,000 cars. The V70 is the best selling car model in Sweden.

In Britain, sales shrank by 3.5 percent to 39,135 cars (2002:40,580).

A deep recession in Germany combined with a sagging overall market and the reorganisation of Volvo’s dealership network there combined to cut Volvo’s sales by 26 percent to 30,285 cars (2002:41,045).

Sales of imported cars in Japan decreased by almost 7 percent. Volvo, however, fared better than most of its competitors, managing to limit its sales cut to just 3 percent. All told, Volvo Cars sold 14,755 cars in Japan in 2003 (2002:15,242).
It is also worth noting that Volvo is selling well on key growing markets. In Russia, Volvo’s sales rose by 69 percent to 4,991 cars (2002:2,947) while China increased by 28 percent to 2,516 cars (2002:1,960).

The new Volvo S40 and Volvo V50
The new Volvo S40 and Volvo V50 were the main news models for Volvo Cars in 2003. The Volvo S40 had its world premiere at the Frankfurt Motor Show in early September, and three months later the wraps were pulled off the Volvo V50 at the motor show in Bologna.

These new compact models are the first fruits of Volvo’s technological cooperation with Ford and Mazda. The Volvo S40 and Volvo V50 boast dynamic driving properties and safety on a par with Volvo’s larger models.

The new Volvo S40 and Volvo V50 are made at the Volvo Cars factory in Ghent, Belgium. Volvo’s production in Born in the Netherlands ends with the phasing out of the previous generation Volvo S40 and V40 during the first half of 2004. When fully expanded, the Ghent factory will be the company’s largest production facility with an annual capacity of 270,000 cars.

In early 2003, Volvo also unveiled an updated Volvo S80, with a more elegant design and the unique FOUR-C chassis system that made its debut in the R models the year before.

New convertible in joint-venture with Pininfarina
During the year, it was announced that the next convertible from Volvo Cars would be developed in cooperation with world-renowned Italian design house Pininfarina. The partnership includes manufacture of the new open-top car, which will be built in a jointly owned facility in Uddevalla on Sweden’s west coast. Pininfarina owns 60 percent and Volvo Cars owns 40 percent of the new company, which is called Pininfarina Sverige AB.

Close cooperation with German transmission specialists GETRAG was launched at the Volvo Cars factory in Köping. GETRAG owns 60 percent and Volvo Cars 40 percent of the new company, GETRAG All Wheel Drive AB.

The aim of the partnership is to make Köping a competitive independent centre for the development and manufacture of four-wheel drive systems for the entire car industry. The Köping factory will also continue to manufacture chassis components.

Another noteworthy development is that Volvo’s facility in Skövde is the first engine factory in the world to receive the highly prestigious World Class Award for Total Productive Maintenance (TPM). 2003 also set a production record for the factory, with a total of 391,000 engines manufactured.

Retail sales 2003 compared with 2002

Per region	2003	2002	Change in %
North America	148,528	122,811	+21
Europe	221,632	236,951	-6.5
Asia/Oceania	12,065	11,681	+3
VCOC	13,838	14,759	-6.2
Japan	14,755	15,242	-3.2
VCIC	4,222	3,972	+6.3
Other	6	1,279	-
VCC Total	415,046	406,695	+2.2%
Per model	2003	2002	Change in %
Volvo XC90	62,177	5,040	+1,234
Volvo XC70	35,146	35,320	-0.5
Volvo S80	38,644	42,815	-10
Volvo S60	90,910	107,463	-16
Volvo S40	43,068	51,388	-16
Volvo V70	83,359	94,729	-12
Volvo V40	53,592	61,475	-13
Volvo C70 Cab	7,840	6,148	+28
Volvo C70 coupe	288	2,208	-87

Production

SWEDEN			THAILAND	1,296
TORSLANDA			Volvo XC90	552
(Gothenburg)	158,384		Volvo S80	192
Volvo S80	38,889		Volvo XC70	36
Volvo XC70	35,561		Volvo V70	84
Volvo V70	15,458		Volvo S60	264
Volvo XC90	68,476		Volvo X40	168
UDDEVALLA	7,885		MALAYSIA	1,056
Volvo C70	7,885		Volvo XC90	576
			Volvo S80	120
BELGIUM			Volvo S60	120
GHENT	157,149		Volvo X40	240
Volvo V70	67,364
Volvo S60	84,908
New S40/V50	4,877		TOTAL PRODUCTION	416,329
			Volvo S80	39,201
THE NETHERLANDS			Volvo C70	7,885
BORN, NedCar	89,191		Volvo XC70	35,597
Volvo X40	89,191		Volvo V70	82,906
			Volvo S60	85,292
SOUTH AFRICA			Volvo X40	90,967
Volvo X40	1,368		Volvo XC90	69,604
			New S40/V50	4,877

Employees
Volvo Cars had 28,100 employees in the end of 2003.

AWARDS 2003

Volvo XC90
Canada
XC90 – Pyramid Award for Safety Innovation (ROPS)	Canadian Automobile Ass.
France
XC90 – Design Award	Salon du 4X4 de Val d'Isère
Germany
XC90 – Best imported SUV	Auto Trophy of Auto Zeitung
XC90 – Best Design	Readers of Auto Strassenverkehr and motor
XC90 – Innovation price for ROPS	Auto Bild alles Allrad
Hungary
XC90 – The family car in 2003	Nök Lapja ladies weekly mag.
Malaysia
XC90 – Premium SUV of the Year	New Straits Times (daily paper)
XC90 – Car of the Year
Russia
XC90 – Best Vehicle in SUV Class	"Golden Klaxon" – Klaxon magazine
Saudi Arabia
XC90 – 4X4 of the year 2004	Arabian Man/Arabian Woman mag.
Singapore
XC90 – Car of the Year Award/SUV of the Year Award	Singapore Straits Times
Sweden
XC90 – Design Prize	Association of Swedish Engineering Industries, Svensk Form & Foundation of Swedish Industrial Design
The UK
XC90 – Scottish Car of the Year Award 2003	Ass. of Scottish Motoring Writers
XC90 – Best SUV (Scottish Car of the Year)	Ass. Of Scottish Motoring Writers
XC90 – Car of the Year 2003 and Best 4x4 Off-Roader Auto Express New Car Honours	Auto Express magazine
XC90 – Best 4X4 2003/Top Gear Car of the Year	Top Gear Magazine 2003 awards
XC90 – Best 4X4 Car of the Year 2003 awards	What Car? Magazine
The US
XC90 – Best Family Vehicle of the Rockies Automotive	Rocky Mountain
Press Organisation
XC90 – Best Engineered Vehicle for 2003	Automotive Engineering Int.
XC90 – Best Winter Vehicle	New England Press Ass.
Best of the Best for 2003 – Car of the Year	Automondo (Sp. language) magazine
XC90 – Truck of the Year in North America	North American (US/Canada) Car of the Year Jury
Volvo S60
The US
S60R – Europe Car Grand Prix winner	European Car Magazine
S60R – Car of the Year	European Car Magazine
S60 AWD – Best All-weather sedan $30,000+	New England Press Ass.
Volvo XC70
The US
XC70 – Best All-Wheel Drive Wagon	SmartMoney Magazine
XC70 – Best All-weather wagon	New England Press Ass.
Volvo S80
China
"My most admirable luxury car"	www.sina.com Netizens poll
Sweden
S80 Bi-Fuel – Best Environmental Car in Large Car Category	Gröna Bilister (Green Motorists Org)
The UK
S80 – Executive Car	Auto Express Used Car Honours
Volvo V70
Germany
V70 – Best import car in upper middleclass	Flottenaward by Autoflotte
The UK
V70 – Estate Car	Auto Express Used Car Honours 2003
New Volvo S40/V50
Russia
Volvo S40 – Best Vehicle in Middle Class	"Golden Klaxon" – Klaxon Magazine
Other awards
Germany
Volvo Bi-Fuel CNG – Best imported alternative fuel	Flottenaward by Autoflotte
Sweden
Volvo Bi-Fuel cars – Miljöbästa bil 2003	Gröna Bilister "Green Motorists"
My Concept Car (Your Concept Car) – Project group	"The Golden Sparkplug The Swedish Automobile Association (M)
The UK
Peter Horbury – Special Award	Auto Express Used Car Honours

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