Specialist
Former VP at Volvo Cars
Agenda
- 2021-23 volume and pricing dynamics across BEV (battery electric vehicle), PHEV (plug-in hybrid electric vehicle) and ICE (internal combustion engine) models
- Volvo Car’s BEV roadmap vs peers such as Mercedes-Benz (ETR: DAI), Audi (ETR: NSU) and BMW (ETR: BMW), as well as mass market OEMs Volkswagen (ETR: VOW3), Renault (PAR: RNO) and Stellantis (PAR: STLA)
- Volvo Car’s online strategy and impacts on customers and dealers
- Separation challenges from Geely (HKG: 0175) following a potential IPO and Volvo Car’s ability to operate independently
Questions
1.
What are your 2021 volume assumptions for Volvo Cars’ ICE [internal combustion engine], PHEVs [plug in hybrid electric vehicles] and BEVs [battery electric vehicles]?
2.
How is the current shortage of semiconductors likely to impact 2021 volumes for Volvo Cars?
3.
What are the options to manage the semiconductor shortage across models to ensure a prioritisation of higher-margin models or PEVs?
4.
You estimated 800,000 units for 2021 but what are your volume assumptions across the engine types for 2022-25?
5.
How realistic is Volvo’s target for 50% sales penetration of recharge – PHEV and BEV – by 2025?
6.
I think there’s also a 1.2 million unit target by 2025, provided that the 800,000 is met in 2021. How difficult is it to increase to 1.2 million by 2025?
7.
What are Volvo’s key growth drivers besides product and new launches?
8.
Which regions could drive growth for Volvo between now and 2025? China will naturally be key.
9.
Why is Volvo so strong in China?
10.
What other factors drive Volvo’s performance in China besides the local footprint and brand positioning?
11.
To what extent do you think Volvo’s demand in China due to being a locally owned brand could change if Volvo were to go public?
12.
You alluded to some historical strengths in Volvo’s product roadmap but what are the potential strengths of the upcoming product releases?
13.
What do you think is needed from the next product life cycle to drive growth?
14.
How competitive is Volvo’s C40 vs similar models from Audi, BMW or Mercedes-Benz?
15.
What’s your outlook for the C40 volume order book? How successful do you think the model will be?
16.
What do you think is the cannibalisation impact of the C40 on the XC40 given the models’ similarities?
17.
How is the competitive landscape shaping out given Mercedes’ EQS recent announcements and overall increased number of SUV EVs and PHEVs entering the market? How is Volvo’s positioning threatened by Mercedes and the broader competitor set?
18.
What’s the threat of Audi on Volvo’s volume growth, especially given the former’s Q4 E-tron has been relatively well-received in Europe?
19.
You’ve identified the players as a core competitive set but how much of an advantage is Volvo’s price positioning vs BMW, Mercedes and Audi?
20.
What are Volvo’s further price elevation opportunities?
21.
Could Volvo price closer towards Audi, BMW and Mercedes’ core ranges? What is Volvo’s price ceiling?
22.
What threat do the lower-priced brands, such as Stellantis Group, Volkswagen or Renault, pose to Volvo’s SUV strength?
23.
Do you think the mass market brands pose a threat to Volvo? Is there a similar customer base?
24.
Could you elaborate on Volvo’s EV capabilities and which platforms might be used to support the roll-out of the BEVs and PHEVs?
25.
How competitive is Volvo’s new Spa2 architecture vs peers?
26.
What are the challenges to managing ICE profitability and sustaining investment in ICE models alongside the growing EV market share?
27.
When might gross margin parity be reached across Volvo’s ICE, PHEV and BEV models?
28.
How competitive is Volvo’s software development? What are the implications of the company’s Google partnership and how are you assessing its ability to catch up with peers’ software capabilities?
29.
What are the key challenges of Volvo’s online strategy and roll-out? What would you highlight on the customer and dealer sides around the online model?
30.
What could be the key challenges around Volvo separating from Geely in a potential IPO?
31.
What could be the impact on the platform sharing and license agreements regarding the modular platform if Volvo were to separate via an IPO?
32.
If Volvo goes public, how would the Lynk & Co joint ownership be managed?
33.
What are the challenges to operating as a standalone unit given the importance of scale in the auto sector?
