Profitability goals for 2026

Volvo France's president, Christophe Duchatelle, stated that the profitability of the network in 2026 is expected to be limited to 0.4 to 0.5 percent, with a goal to reach between 1 and 1.5 percent in the coming years. Despite a 16 percent increase in volumes and a 35 percent increase in orders, the subsidiary expects to finish the year around 15,000 cars, representing a 15 to 20 percent increase compared to 2025. The order book is nearly doubled compared to the previous year.

Shift to electric vehicles

The recovery is largely based on 100 percent electric vehicles, which now represent 70 percent of deliveries and 80 percent of orders, compared to 40 percent of sales last year. The brand's shift in powertrain is accompanied by a change in the composition of sales, with models from the 30 and 40 families contributing significantly to the activity, historically driven by the 60 and 90 series. Taxation and the eco-score contribute to this redistribution.

Volume and profitability targets

To achieve an average profitability of 1 to 1.5 percent, the executive places the need for the network around 17,000 to 20,000 cars per year. With the expected 15,000 units in 2026, the account is not yet balanced. The arrival of the EX60 is expected to contribute to the development of volumes, with 1,800 orders already announced, although availability will limit its contribution to the 2026 financial year.

Used car market growth

Electric vehicles are progressing strongly in new car sales but are not lagging behind in used cars, with a 50 percent increase in volume. The brand has asked its captive financing company, BNP Paribas Personal Finance, to take over residual values, with the goal that the network will buy back the cars in the end.

Integration of Lynk & Co

Starting in January 2027, Volvo France will take over the sales of Lynk & Co. The goal will first be to relaunch the activity of existing dealers before expanding the territorial coverage. The brand currently has twelve dealers and 50 repairers in France. The integration should allow the brand to benefit from a larger organization and more human resources. The development of the network will take place in a second phase, with the potential of Lynk & Co estimated to be a few thousand cars in the long run.

Network structure and brand separation

The distribution of Lynk & Co will be reserved for Volvo investors, like that of Polestar, but the brands will not share their commercial spaces. The executive plans for separate showrooms and salespeople, with the closeness focusing more on functions less visible to the customer. In most cases, the service part can be shared, as well as certain administrative functions. Within a few years, at most half of the Volvo network will also represent Lynk & Co.

Broader group strategy

This organization is part of a broader landscape with the development of several brands from the Geely group. If Lynk & Co and Polestar rely on Volvo investors, Geely and Zeekr will recruit beyond this circle. Christophe Duchatelle describes them as "preferred competitors," emphasizing the need to differentiate the offers. Belonging to the group constitutes an advantage for Volvo, thanks to access to technologies, the possibility of sharing platforms and purchasing power. However, for distributors, the relevance of this diversification will first be measured by the results.