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2004 a record year for Volvo Cars

3 February 2005

• 2004 set a new sales record for Volvo Car Corporation, with global sales reaching 456,224 cars (+ 10 per cent over 2003)
• The XC90 was the best-selling Volvo model - globally and in the UK
• Volvo registered 40,005 cars in UK (+ 2.4 per cent over 2003)
• Volvo achieved record sales in USA of 140,000 cars, representing nearly 1 in 3 Volvo sales
• Nearly 1 in 3 Volvo cars sold had All-Wheel Drive

With the introduction of the new S40 saloon and V50 Sportswagon, plus the continued success of the XC90, Volvo achieved increased sales and market share in nearly every market it serves around the world in 2004, with global sales increasing by 10 per cent over 2003, to a new record level of 456,224 cars sold.

"Our goal of selling 450,000 cars has finally been passed and we feel that our long-term aim of 600,000 cars a year is now within reach," says Hans-Olov Olsson, President & CEO of Volvo Car Corporation.

1 in 3 Volvos go to America

Record sales of almost 140,000 Volvos in America (+ 3.5 per cent over 2003) and over 11,000 in Canada, makes North America Volvo's largest market with one in every three Volvo cars made in 2004 going to customers across the Atlantic.

Sweden: 20 per cent market share

After America, Volvo's homeland, Sweden, still accounts for the second largest number of sales of cars, where it achieved a 20 per cent market share in 2004 thanks to a 7.5 per cent increase in sales in 2004 to 51,464 cars. In its neighbouring Nordic countries, Volvo had a market share of 6.8 per cent in Finland and 5.6 per cent in Denmark in 2004. Norway accounted for the largest percentage increase in sales of 53 per cent, with 6,494 Volvo cars sold there last year.

UK v Germany

Britain and Germany traditionally compete strongly to be Volvo's third largest sales market, and the UK won again last year with 40,159 sales (40,005 actual registrations) compared to Germany's 38,085. Volvo registrations in the UK increased by 2.4 per cent, while in Germany sales increased by more than 25 per cent following a poor year for Volvo in Germany in 2003.

Greece and Japan

Greece and Japan were significant for Volvo for different reasons last year. Greece recorded the single highest sales volume increase - 67 per cent - whilst Japan was the only country where Volvo sales declined last year, by 5.7 per cent, following the late arrival of the new S40 saloon and V50 Sportswagon.

XC90 - the Best Selling Volvo

In its second full year in production, the XC90 became Volvo's best-selling model globally, as well as in the UK. A total of over 84,000 XC90s was sold in 2004, with 7,178 (or 8.5 per cent) of these registered to UK customers. Across the Atlantic in the native homeland of the SUV, the XC90 accounted for over 28 per cent of US sales (39,630). With the introduction of the new Volvo V8 engine in late 2004, total sales of the XC90 are predicted to grow further in 2005.

XC90 production at Volvo's Torslanda factory in Gothenburg, Sweden, has now increased from an initial plan of 65,000 cars per annum to more than 90,000, which has reduced customer waiting times to around six months in the UK.

All-Wheel Drive: nearly 1 in 3

More Volvo customers than ever chose a Volvo with All-Wheel Drive last year. 143,000 customers bought Volvos equipped with All-Wheel Drive in 2004, which represents nearly one in three cars sold.

Diesel Power: diesel now represents nearly 60 per cent of UK Volvo sales

Volvo introduced two new four-cylinder diesel engines last year from the joint development with Ford/PSA - the 1.6-litre and 2.0-litre diesel available in the S40 saloon and V50 Sportswagon - and now just over 50 per cent of Volvos sold in Europe and nearly 60 per cent sold in the UK last year had a diesel engine.

Volvo's engine factory in Skövde, Sweden will start producing the 2.0-litre diesel in 2005, while in return, Volvo's six-cylinder petrol engine will be transferred to Ford's Bridgend factory in Britain.

Volvo Production in 2004

Volvo manufactured a total of 460,000 cars in 2004. Production is concentrated in Volvo's two car factories, one in Torslanda, in Gothenburg, Sweden (which celebrated its 40th anniversary in 2004) and the other in Ghent, Belgium, where the S60, V70 and new S40 and V50 models are made. Both these factories have implemented major production increases over the past year, with the Torslanda plant now considering a third shift to meet demand. At present, the capacity limits are 190,000 in Torslanda and 270,000 in Ghent, while the long-term goal for each factory is to be able to handle 500,000 cars a year if required.

Volvo ended a 32 year link with the Netherlands in 2004 when production of the previous S40 model and the V40 estate came to an end at the NedCar factory in Born, Holland.

The Uddevalla factory, where the Volvo C70 convertible is made, is now owned and operated by a jointly owned company, Pininfarina Sverige AB, where Pininfarina owns 60 per cent of the shares and Volvo Cars 40 per cent. This is where Volvo's next generation convertible, the Volvo C70, will be manufactured.

In addition to these factories, Volvo Cars has assembly facilities in South Africa, Thailand and Malaysia.

2004 Volvo sales by country:

Ranking	Country/sales	2003	2004
1	USA	134,620	139,155
2	Sweden	47,928	51,464
3	UK	39,135	40,159
4	Germany	30,285	38,085
5	Italy	18,416	19,390
6	Holland	16,204	19,225
7	Spain	14,034	15,925
8	Japan	14,755	13,919
9	Belgium	9,426	12,929
10	France	8,775	11,989
11	Canada	10,750	11,135
12	Finland	9,284	10,076
13	Switzerland	6,245	6,706
14	Norway	4,241	6,494
15	Russia	4,991	5,005
16	South Africa	3,111	4,602
17	Denmark	3,252	3,513
18	Mexico	2,721	3,356
19	Portugal	2,124	2,626
20	China	2,516	2,609

The Best-Selling Volvo models in 2004:

Ranking	Volvo Car Corporation
1	XC90	84,032
2	V70	74,656
3	S60	73,121
4	New S40	53,085
5	V50	47,743

Ranking	Volvo Car UK		% change
1	XC90	7,178	+ 81.4%
2	V70	7,170	- 11.4%
3	S60	6,000	- 22.5%
4	V40	3,992	- 43.5%
5	S40 Classic	3,692	- 40.8%
6	V50	3,526	~
7	New S40	3,094	~
8	S80	2,268	- 23.9%
9	XC70	1,547	+ 32.9%
10	C70	1,538	- 15.9%
Total		40,005	+ 2.4%

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