In a Euronews interview, the CEO of Volvo Cars warned that 2025 would be a tough one for the motor industry. He also shared his views on tariffs and the development of electric vehicle sales.
ADVERTISEMENTThe CEO of Volvo Cars, Jim Rowan, told Euronews that the group is “well-prepared but mindful” that 2025 is going to be a challenging year for the automotive industry.
It comes as the sector faces ongoing headwinds, including supply chain disruptions, as a result of semiconductor shortages, higher interest rates and prices curbing consumer demand, declining EV sales – as well as the threat of pending US tariffs.
“The global car industry is facing several uncertainties: cyclical, structural, transformational and geopolitical,” Rowan said.
He added: “We are monitoring developments. We will continue with our long-held strategy of building our cars where we sell them, including adding EX30 production to our Ghent plant. Our full focus right now is on getting the production up and running during the first half of this year.”
Dealing with declining EV sales
Germany is among the European markets that experienced a decline in EV sales in 2024, after it was hit by increased competition from China, and the battery electric vehicle (BEV) subsidy programme ending. A lack of charging infrastructure and relatively high EV prices has also contributed to falling sales.
“We are investing in a balanced product portfolio of pure BEVs and plug-in hybrid cars. In 2024 we increased our fully electric (BEV) sales share to 23% of total sales (versus 16% in 2023) and delivered the highest EV sales share of all legacy premium car manufacturers in 2024,” Rowan said.
“We make progress on our ambition to reach 50% to 60% electrified sales for the full year 2025, reflecting all cars with a plug. Our electrified sales accounted for 46% in 2024 (versus 38% in 2023),” he added.
Strong performance despite headwinds
Rowan stressed that despite the headwinds, 2024 delivered a strong performance for the company with a record year in terms of profits and volumes of cars sold.
Operating income in 2024 was SEK 22.3bn (€1.9bn), up from SEK 19.9bn (€1.8bn) in the previous year, while earnings before interest and taxes (EBIT) was 5.6% in 2024, up from 5% in the previous year.
“Revenues exceeded SEK 400 billion (€35.4bn) for the first time in our company’s history. On challenges, I am particularly proud of our achievement becoming one of the few companies harnessing core computing technology,” he said.
Impact of EU regulations
EU regulations, especially regarding green targets, have resulted in carmakers spending a significant amount of time and money on staying in line with standards.
Last year, the EU was considering changing its 2035 zero-emission target for all new cars sold in the EU. However, several European companies, including Volvo Cars, urged Brussels not to change the target as they believe it can be met.
Laying out his vision for the future, Jim Rowan stressed: “Electrification is the single biggest action our industry can take to cut its carbon footprint. The 2035 target is crucial to align all stakeholders on this journey and ensure European competitiveness. We urge EU policy makers to focus on what actions we need to take to get there, rather than reopening legislation just agreed on.
“The EU Green Deal has laid a solid foundation to curb emissions, while attracting long-term investment in Europe. With global EV competition intensifying, Europe must stay committed to the vision. Policymakers must avoid reopening legislation that could undermine this progress,” Rowan told Euronews.
New models and plans for 2025
The Volvo Cars CEO also highlighted that the group is well prepared for the hurdles ahead, despite the headwinds.
ADVERTISEMENT“We are well-prepared but mindful 2025 will be a challenging year for the industry. We plan to launch five new and refreshed models.”
Rowan said the group is also ramping up production of the EX30 in Europe and preparing for the EX60 and SPA3 platform launch.
