The Volvo Group said it would be investing $84 million in South Korea and aims to release an electric sports utility vehicle (SUV) in the country this year. The company is also targeting a 20% sales growth through this new investment.
According to The Korea Times, Volvo Cars is working on its complete transition to EV production by 2030. As part of this project, the company is planning to launch new EVs every year. So far, it has already unveiled two electric vehicles, which are the C40 and EX90 models. These two are said to have been fitted with batteries from LG Energy Solution (LGES).
The Swedish luxury car maker will also step up its cooperation with battery and tech firms in Korea since technology is fast becoming an important part of the auto production industry. Technology is also a key ingredient in maintaining competitiveness in the global market now thus, it wants to improve relations with tech companies.
"We have been cooperating with Korean tech and battery partners for many years and we expect that to continue. We see that technology will be very important for the future," Jim Rowan, chief executive officer of Volvo Cars, said during a recent press conference. "We will build our own battery factory in Sweden but we will maintain relationships with the current battery manufacturer because we plan to expand our business and we will need supply from both."
Meanwhile, Yonhap News Agency reported that Volvo Car’s sales goal for 2023 is about 17,500 units. The latest investment of KRW111 billion or$85 million is set to be used for the expansion of its showrooms, after-sales services, and more as it transitions to EV production.
To boost its EV lineup in Korea, Volvo Cars will release its EX90 flagship SUV before this year ends. The launch was moved to an earlier time as the original date was in 2024.
