Volvo Sales Remain Up Despite Supply Chain Issues (PDF)

Volvo has been one of the biggest car manufacturers on the market for quite some time. The Swedish company sales were up nearly 9% year-over-year in October, and it saw significant growth in its Recharge EV sales, which are now up 20% from a year ago.

However, there is still one problem that has been difficult to solve–the lingering effects of the supply chain crisis in the industry.

Anders Gustafsson, CEO of Volvo Cars USA says: “I know what I know today, but I don’t know if it’s going to be additional COVID issues on our supplier side, and that’s kind of troublesome. But also we have learned to live with it, and we plan and take decisions based on week to week.”

Gustafsson’s vast experience at Volvo Cars is beneficial as he continues to pursue the company’s goals. Recently, demand has been very good in the United States, Canada, and Brazil. Gustafsson says that November numbers made him “very happy,” though we’ll have to wait for the full-year results to know for sure.

Regarding the future of the brand, Volvo’s first dedicated EV, the EX90 SUV is about to hit the market.

Volvo is one step ahead of its rivals. Along with hardware and motors, they will offer software and service options that Tesla has proven to be valuable to customers. The EX90 will receive over-the-air updates for its vehicle, meaning it will have constant updating after purchase.

Tech innovations like deep integration with Google, 3D-LIDAR technology that enables fully autonomous driving, and cutting-edge software development, mean that making engineering in-house is a necessity for Volvo.

There’s an ongoing arms race in the automotive industry, with brands like Ford looking to hire experts from Silicon Valley. “That’s really what we’re working with right now – it goes fast – and it’s always better. I didn’t say cheaper, I said better to have that kind of a core competence inside the company,” says Gustafsson.