Company profile

Future of Volvo

#
Rank
285
| Quantumrun Global 1000

The Volvo Group is a Swedish global producing company headquartered in Gothenburg. While its central activity is the distribution, sale, and manufacture of buses, trucks, and construction equipment. The company also supplies industrial and marine drive systems and financial services.

Home Country:
Industry:
Motor Vehicles and Parts
Website:
Founded:
1927
Global employee count:
89477
Domestic employee count:
Number of domestic locations:

Financial Health

Revenue:
$302000000000 SEK
3y average revenue:
$297000000000 SEK
Operating expenses:
$47189000000 SEK
3y average expenses:
$66559666667 SEK
Funds in reserve:
$23949000000 SEK
Revenue from country
0.32
Market country
Revenue from country
0.22
Revenue from country
0.10

Asset Performance

  1. Product/Service/Dept. name
    Trucks
    Product/Service revenue
    200650000000000
  2. Product/Service/Dept. name
    Construction equipment
    Product/Service revenue
    50731000000000

Innovation assets and Pipeline

Global brand rank:
381
Investment into R&D:
$14600000000 SEK
Total patents held:
2386
Number of patents field last year:
1

All company data collected from its 2016 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page. 

DISRUPTION VULNERABILITY

Belonging to the motor vehicles and parts sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:

*First off, the plummeting cost of solid-state batteries and renewables, the data crunching power of artificial intelligence (AI), the increasing penetration of high-speed broadband, and the falling cultural attraction to car ownership among millennials and Gen Zs will lead to tectonic changes in the motor vehicle industry.

*The first giant shift will arrive when the price tag for an average electric vehicle (EV) reaches parity with an average gasoline vehicle by 2022. Once this happens, EVs will take off—consumers will find them cheaper to run and maintain. This is because electricity is usually cheaper than gas and because EVs contain significantly less moving parts than gasoline-powered vehicles, resulting in less strain on internal mechanisms. As these EVs grow in market share, vehicle manufacturers will shift most-to-all of their business to EV production.

*Similar to the rise of EVs, autonomous vehicles (AV) are projected to attain human levels of driving capability by 2022. Over the following decade, car manufacturers will transition into mobility service companies, operating massive fleets of AVs for use in automated ride-sharing services—direct competition with services like Uber and Lyft. However, this shift toward ridesharing will lead to significant reductions in private car ownership and sales. (The luxury car market will remain largely unaffected by these trends until the late 2030s.)

*The two trends listed above will result in the reduced volume of vehicle parts sales, negatively impacting vehicle parts manufacturers, making them vulnerable to future corporate acquisitions.

*Moreover, the 2020s will see increasingly devastating weather events that will further drive environmental awareness among the general population. This cultural shift will lead voters to pressure their politicians to support greener policy initiatives, including incentives to purchase EV/AVs over traditional gasoline powered cars.

COMPANY’S FUTURE PROSPECTS

Company Headlines