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===== SIDA 1 =====

Freedom to
move.
Volvo Car Group
Annual and Sustainability Report 2025

===== SIDA 2 =====

OUR PURPOSE / WHY WE ARE HERE
Personal
With our deep understanding of human behavior 
we develop products that understand, support 
and protect people in and around the car. Never 
forcing anyone to compromise on the way they 
want to live life.
Sustainable
We always aim for the highest standards of 
 sustainability in mobility. This approach does 
not mean compromise – it means creating 
smarter, more efficient products that people can 
be proud to choose.
Safe
In 1927, our founders stated that safety is the 
guiding principle behind everything we do.  
We stay committed to leadership in safety and 
a higher quality of life for people.
To provide freedom  
to move in a  personal, 
sustainable and  
safe way.
VOLVO CAR GROUP  / OVERVIEW / PURPOSE2

===== SIDA 3 =====

OVERVIEW
	 2	 Purpose
 4  About	Volvo	Cars
 7  2025 highlights
 13  	CEO	letter 
 15 MARKET
 16 Global automotive market
 17  Market defining trends 
 18 OUR STRATEGIC FRAMEWORK
 20  Our	guiding	principles
 21  Our	strategic	direction
 22 Customer	experience
 24  Committed	organisation
 26  Electrification	and	regionalisation
 29 DIRECTORS' REPORT
 36 RISK
	 37	 Enterprise	Risk	Management 
 42 CORPORATE GOVERNANCE
 43  Corporate	Governance	Report
 51 Board of Directors
	56	 Executive	Management	Team
 59 Extended	Executive	Management	Team
 60 	Auditor’s	Report 
 61 FINANCIALS
 63  Consolidated	Financial	Statements
	 70		Notes	to	the	Consolidated	Financial	Statements
 115 Alternative	Performance	Measures
 119 	Parent	Company	Financial	Statements
 121  	Notes	to	the	Parent	Company	Financial		Statements
 126 	Proposed	distribution	of	non-restricted	equity
  127 	Auditor’s	Report 
130  SUSTAINABILITY
 132  General information
 148 	Environmental	information
 179 	Social	information
 199  Governance information
 206 Other	information
 214 Auditor’s	Report
 220   The share
 222 	Our	heritage
 226  Definitions
222 
OUR HERITAGE
61 
FINANCIALS 
130 
SUSTAINABILITY 
18 
OUR STRATEGIC FRAMEWORK
13 
CEO LETTER
7 
HIGHLIGHTS
Volvo Car Group’s formal Annual Report 
is presented on pages 29–35, 61–114, 119–126 
and 130–213. Page 29–35, 61–114 and 119–126 
has been audited, while the Sustainability 
Statement, which constitutes part of the 
Directors’ Report, included on page 130–213, 
has been subject to limited assurance, by the 
Group’s auditors.

===== SIDA 4 =====

Born	in	Sweden	and	now	nearly	100	years	old,	we	remain	
deeply	rooted	in	our	Swedish	heritage.	Through	our	history,	
Volvo	Cars	became	synonymous	with	safety.	And	where	safety	
once	meant	inventing	the	three-point	seatbelt	and	sharing	it	
globally, having helped save a million lives, our scope now also 
encompasses working to improve sustainability in mobility.
Setting new standards
Our	ambition	is	to	set	new	standards,	whether	through	cus -
tomer	experience,	electrification,	manufacturing	processes	or	
carbon	emissions	reductions.	Inspired	by	Swedish	design	and	
craftsmanship, we aim to create elegant, intuitive yet advanced 
products	that	address	real-world	needs	-	from	how	a	car	is	
purchased or leased to how it feels to drive and ride in and how 
it interacts with its surroundings.
Electrification is key 
We are ready to go fully electric when our customers are. In a 
challenging market environment, we are taking decisive action 
to	enhance	resilience	and	position	us	for	profitable	growth.	Our	
direction is clear: we will become a fully electric car company. 
Electrification	is	a	key	driver	of	future	volume	and	profitability,	
and we are committed to leading this transition.
We	offer	a	strong	line-up	of	fully	electric	cars.	For	those	cus -
tomers or markets not quite ready to make the shift we offer 
upgraded hybrid models as a bridge to an all electric future. 
Our	customers	set	the	pace.	We	are	ready	when	they	are.
Perform and transform
We are now accelerating efficiency and performance through 
targeted initiatives in organisation, leadership, product devel -
opment, and manufacturing, complemented by a sharper focus 
on	regionalisation	and	commercial	execution.	With	the	peak	of	
our investment phase behind us, we are now aiming to increase 
margins and strengthening cash flow. By maintaining disci -
plined	cost	control	and	driving	operational	excellence,	we	are	
executing	our	strategic	roadmap	and	reinforcing	a	solid	finan -
cial foundation.
Our	strong	focus	on	both	performance	and	continued	trans -
formation ensures we remain competitive and resilient today, 
while positioning Volvo	Cars	for	long-term	growth	and	leader-
ship in the future of mobility.
A brand for people  
who care
OUR BRAND / WHO WE ARE
From	the	outset,	Volvo	Cars	has	been	a	brand	for	people	
who care about the world we live in and the people around us. 
We have made it our mission to make life easier,  better and 
safer for everyone.
We are driven by finding new ways to provide 
freedom to move in a personal, sustainable 
and safe way.
Our	brand	is	uniquely	shaped	by	Sweden,	
	combining	Scandinavian	design,	with	human	
 centricity and durability in everything we do.
We are committed to leadership in safety and 
a higher	quality	of	life	for	people.	For	Life.
Freedom to Move
By Sweden
For Life
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK  18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
4 VOLVO CAR GROUP  / OVERVIEW / ABOUT	VOLVO	CARS

===== SIDA 5 =====

~ 710,000 
RETAIL SALES
24% 
PLUG IN HYBRID
~ 2,200 
RETAIL LOCATIONS
~ 42,600 
EMPLOYEES
21% 
FULLY ELECTRIC
+ 100 
COUNTRIES SHARE OF RETAIL SALES
China 21%
US 17%
Other 15% 
Europe 47%
China 21%
US 17%
Other 15% 
Europe 47%
We	started	in	Sweden	almost	a	century	
ago and have since built a strong footprint 
across	Europe,	Asia	and	the	United	
States.	Today,	our	cars	are	sold	in	more	
than 100 countries. As globalisation 
recedes, we are now adapting to a more 
regionalised landscape, tailoring our 
products, technologies, manufacturing, 
and commercial strategies to meet the 
specific needs of our customers in each 
region.	Our	over	arching	strategy	is	simple:	
to build where we sell. This model 
enhances our ability to respond to market 
dynamics and strengthens our resilience.
A global brand  
– adapting to a 
more regionalised 
landscape
READ MORE  ABOUT REGIONALISATION 
ON PAGE 26
~ 2,800 
AMERICAS EMPLOYEES 
~ 31,000 
EUROPE EMPLOYEES 
~ 8,800
 ASIA EMPLOYEES 
BELGIUM
GHENT 
	CAR	PRODUCTION
JAPAN 
TOKYO  
APEC	HQ
SWEDEN
GOTHENBURG  
GLOBAL	HQ	 
R&D 
DESIGN	CENTRE  
CAR	PRODUCTION
STOCKHOLM   
TECH	HUBUSA 
MAHWAH, NJ  
US/CANADA	HQ
CHARLESTON, SC  
CAR	PRODUCTION
BRAZIL  
SÃO PAULO 
LATAM
LUND  
TECH	HUB
OLOFSTRÖM   
BODY	COMPONENTS
SKÖVDE  
E-MOTORS
FLOBY  
BODY	COMPONENTS
POLAND 
KRAKOW  
TECH	HUB
SLOVAKIA 
KOŠICE 
CAR	PRODUCTION
MALAYSIA 
KUALA LUMPUR  
TECH	HUB	AND	 
ASSEMBLY	FACTORY
SINGAPORE   
TECH	HUB
INDIA 
BANGALORE  
TECH	HUB	 
AND	CONTRACT	 
ASSEMBLY
CHINA
SHANGHAI  
GREATER	CHINA	HQ	 
REGIONAL	R&D	AND	
DESIGN	CENTRE
CHENGDU  
CAR	PRODUCTION	
DAQING  
CAR	PRODUCTION
TAIZHOU
CAR	PRODUCTION
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
5 VOLVO CAR GROUP  / OVERVIEW / ABOUT	VOLVO	CARS

===== SIDA 6 =====

Volvo	Cars	offers	a	balanced	portfolio	of	fully	
electric and hybrid cars, providing the strategic 
flexibility	to	leverage	our	strengths	across	
diverse regional markets.
Most recently, in January 2026 we launched 
the	EX60	–	the	first	car	built	on	our	new	SPA3	
platform.	The	new	mid	size	electric	SUV,	EX60,	
is	expected	to	be	our	next	volume	driver,	com-
pleting our offering in this important segment.
During	2025,	the	fully	electric	ES90	and	the	
XC70	long	range	PHEV	were	premiered.	
In the years to come, we will continue bringing 
new electric models to the market while also 
refreshing	our	plug-in	hybrid	cars	for	customers	
and markets that are not yet ready to fully  
transition.
A balanced portfolio 
of fully electric and 
hybrid cars
READ MORE  ON PAGE 26
Current hybrid and long-range plug-in hybrid models
Current fully electric models
EX30
XC40
EC40
S60
EX40 EX60
V60
ES90
XC60
EX90
XC70 S90
EM90
XC90
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
6 VOLVO CAR GROUP  / OVERVIEW / ABOUT	VOLVO	CARS

===== SIDA 7 =====

Highlights
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
7 VOLVO CAR GROUP

===== SIDA 8 =====

Operational highlights
EX30 IN PRODUCTION NOW 
IN EUROPE
In April, Volvo	Cars	started	production	
of	the	fully	electric	EX30	small	SUV	at	
the manufacturing plant in Ghent, 
 Belgium. Volvo	Cars	thereby	continues	
to further diversify the global manufac -
turing footprint for one of its most  
popular	models,	and	expand	production	
capacity to better meet local demand.
LAUNCH OF COST AND CASH 
ACTION PLAN
In April, Volvo	Cars	launched	a	cost	  
and	cash	action	plan	totalling	SEK	18	bn,	
including a global redundancy  
programme. 
46%
SHARE OF ELECTRIFIED CARS
In 2025, Volvo	Cars	sold	323.3	thousand	
electrified cars, accounting for 46 per 
cent share of the total sales, whereas 
BEVs	accounted	for	21	per	cent	share	of	
total sales. Volvo	Cars	continues	on	its	
path towards being a leading fully electric 
company,	with	plug-in	hybrids	as	a	prag-
matic bridge to get there.
CONTINUED INVESTMENTS  
IN THE US 
During the year, Volvo	Cars	announced	
the	addition	of	the	best-selling	XC60	
mid-size	SUV	to	the	production	line	of	
the	US	plant	in	Ridgeville,	just	outside	
Charleston	in	South	Carolina.	Further-
more it was announced that before 
2030, Volvo	Cars	plans	to	add	a	new,	
next-generation	hybrid	model	to	the	
Charleston	plant.	The	coming	new	
model is designed to meet the specific 
demands	of	the	US	market,	in	line	with	
Volvo	Cars	increased	focus	on	ensuring	
each region has the best product port-
folio to meet customer demands.
THE ALL-NEW, FULLY ELECTRIC 
VOLVO ES90 IN PRODUCTION
THE NEW VOLVO XC70 
LAUNCHED
In	September,	Volvo	Cars	started	produc-
tion of the new, fully electric Volvo	ES90.	
Built	on	the	SPA2	architecture,	the	ES90	
is designed to continuously evolve and 
improve through core computing tech-
nology, constant connectivity and data. 
It was the first Volvo car to feature 800 
volt battery technology, enabling longer 
range	and	faster	charging.	It	is	the	sixth	
fully	electric	model	in	the	line-up,	joining	
the	EX90,	EM90,	EX40,	EC40	and	EX30	
as	the	journey	towards	full	electrification	
continues. 
In August, the new Volvo	XC70	SUV	was	
revealed.	The	XC70	is	Volvo	Cars’	first	
long-range	plug-in	hybrid,	offering	an	
all-electric	driving	range	of	over	200km	
under	the	CLTC	testing	cycle.	Built	in	
collaboration with Geely, on the new 
Scalable	Modular	Architecture	(SMA)	
platform	for	long-range	plug-in	hybrids,	
the	new	XC70	represents	an	important	
addition to Volvo	Cars’	product	lineup.	 
It is designed to meet growing demand 
for	longer-range	plug-in	hybrids,	par-
ticularly	in	China.	Production	and	first	
deliveries	were	started	in	Q3.
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
8 VOLVO CAR GROUP  / OVERVIEW / 2025	HIGHLIGHTS

===== SIDA 9 =====

“ Electrification is an 
 opportunity for us and the 
main driver for growth. 
Besides that, the key building 
blocks for profitable growth 
are  variable cost reductions 
 supported by hardware 
 synergies with Geely, further 
indirect cost reductions 
and structurally lower 
 investments.”
    
    Håkan Samuelsson ,  
    President and CEO for Volvo Cars
Our	turnaround	programme	structured	around	Electrification,	 
Regionalisation	and	Profitability,	underpins	our	strategic	direction.
Electrification
We continue our path towards being 
a leading fully electric company, 
with plug-in	hybrids	as	a	pragmatic	
bridge to get there.
Regionalisation
We are developing a more regional  
organisation with more empowered  
regions to faster adapt to a more  
regionalised world.
Profitability
We continue to safeguard our  
profitability and improve our cost  
position.
Turnaround programme
In a market undergoing rapid and profound transformation,   
we maintain a strong position supported by a trusted brand,  
a	competitive	portfolio	of	BEVs	and	PHEVs,	and	a	solid	financial	
foundation reinforced by recent cost and cash optimisation 
measures.	Our	new	SPA3	platform	provides	access	to	one	of	
the	industry’s	most	advanced,	uncompromised	BEV	architec -
tures, while our collaboration with Geely secures a unique 
	footprint	in	China	and	synergies	beyond.
With the heavy investment phase behind us, we are now 
structurally	building	a	company	geared	toward	a	long-term	
EBIT	margin	above	8	per	cent	and	strong	positive	cash	flows	
through profitable electrified growth, increased synergies with 
Geely as well as indirect cost reductions.
We are accelerating efficiency and performance through 
 targeted initiatives in organisation, leadership, product 
 development, and manufacturing, supported by a regionalised 
approach and commercial strategy with competitive and 
adapted offerings for each region.
Our	commitment	to	both	performance	and	ongoing	trans -
formation ensures we remain competitive and resilient today, 
while positioning Volvo	Cars	for	long-term	growth	and	leader-
ship in the future of mobility.
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
9 VOLVO CAR GROUP  / OVERVIEW / 2025	HIGHLIGHTS

===== SIDA 10 =====

On	21	January	2026,	Volvo	Cars	introduced	the	
Volvo	EX60,	a	new	all-electric	mid-size	SUV,	the	
first	car	built	on	the	new	SPA3	electric	architecture.	
The	EX60	changes	the	game	in	th e largest electric 
market segment in terms of range, charging speed, 
performance	and	price.	The	five-seater,	family 	-
friendly	EX60	ends	range	anxiety,	delivers	a	
groundbreaking	user	experience	and	represents	
the	next	frontier	in	safety.	It	is	also	Volvo	Cars’	first	
entry in the largest electric segment globally, 
allowing it to substantially increase Volvo	Cars’	
addressable market and electric market share.
Launch of the 
EX60
EVENTS AFTER YEAR-END OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
10 VOLVO CAR GROUP  / OVERVIEW / 2025	HIGHLIGHTS

===== SIDA 11 =====

Financial highlights
• Retail	sales	decreased	by	–7	per	cent	to	
710.0	(763.4)	thousand	cars.
• Revenue	amounted	to	SEK	357.3	(400.2)	
bn,	primarily	explained	by	lower	whole-
sale	volumes	and	unfavourable	sales	mix	
and pricing, partially offset by increased 
used car sales.
• Operating	income	(EBIT)	was	SEK	0.3	
(22.3)	bn,	mainly	impacted	by	items	
affecting	comparability,	a	one-time	  
non-cash	impairment	charge	of	SEK	11.4	
bn	and	restructuring	cost	of	SEK	0.8	bn.	
Excluding	these,	the	decrease	was	
mainly	explained	by	sales	mix	and	pric-
ing as well as lower wholesale volumes 
and increased cost for tariffs and nega -
tive	foreign	exchange	impacts	from	a	
strengthened	SEK.
• EBIT	margin	was	0.1	(5.6)	per	cent.
• Basic	earnings	per	share	was	SEK	0.06	
(5.17).
• Operating	and	investing	cash	flow	was	
SEK	2.4	(1.1)	bn,	primarily	driven	by	lower	
investments,	increased		year-end	pro-
duction and proceeds from the divest-
ment	of	shares	in	Lynk	&	Co.
• The Board of Directors proposes that 
no dividend should be paid out.
FORWARD LOOKING
• For	2026,	Volvo	Cars	aims	to	come	back	
to	volume	growth	on	a	year-on-year	
basis for the full year and increase cash 
generation with full year free cash flow 
clearly better than what was achieved 
in 2025.
EBIT AND EBIT MARGIN 
(SEK BN/%)
KEY FIGURES FINANCIALS (SEK m)
REVENUE AND GROSS 
MARGIN (SEK BN/%)
RETURN ON INVESTED 
CAPITAL, ROIC (%)
2025 2024 2023
Retail	sales,	units 710,042 763,389 708,716
Revenue 357,263 400,234 399,343
Research	and	development	expenses –26,067 –16,983 –12,884
Operating	income	(EBIT) 303 22,318 19,939
Operating	income	(EBIT)	excl.	share	o f income	from	JVs	&	
associates –351 27,040 25,567
Operating	income	(EBIT),	excl.	Items	affecting	comparability	 12,556 24,020 20,563
Net income –2,968 15,934 14,066
Basic	earnings	per	share,	SEK 0.06 5.17 4.38
EBITDA 35,679 45,048 37,388
Cash	flow	from	operating	activities 34,625 47,372 42,867
Cash	flow	from	investing	activities –32,176 –46,245 –51,842
Net cash 26,871 27,115 27,487
Gross margin, % 16.9 19.8 19.4
EBIT	margin,	% 0.1 5.6 5.0
EBIT	margin	excl.	share	of	income	fro m JVs	&		associates,	% –0.1 6.8 6.4
EBITDA	margin,	% 10.0 11.3 9.4
Return	on	invested	capital,	ROIC,	% 0.2 12.0 12.4
5
10
15
25
20
–1
3
2
1
00
4
5
8
6
7
21 2422 23 25
EBIT, SEK bn
EBIT-margin, %
EBIT-margin excl. share of 
income in JV & associates,%
SEK bn %
21 2422 23
0
150
100
50
200
250
400
300
350
0
5
10
15
25
20
25
Revenue, SEK bn
Gross margin, %
SEK bn %
0
5
10
15
25
20
21 2422 23 25
Invested capital is calculated
on two-year average figures.
%
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
11 VOLVO CAR GROUP  / OVERVIEW / 2025	HIGHLIGHTS

===== SIDA 12 =====

Sustainability highlights
2025 2024 2023
Climate Action
 	Reduction	of	CO 2 emissions per car, %1)2) 31 32 27
 Electrified	cars	retail	sales	(BEVs	and	PHEVs),	% 46 46 38
 Climate	neutral	energy	in	own	operations,	% 87 78 74
Circular Economy
 	Water	withdrawal	reduction	per	manufactured	car	in	own	
operation, %1) 29 20 25
 	Recirculation	rate,	% 95 94 87
 	Additional	circular	business	revenue	and	cost	savings,	SEKm 1) 149 266 508
Responsible Business
 	The	share	of	green	debt,	in	accordance	with	our	Green	
Financing	Framework,	or	sustainability-linked	format	as	
 percentage of outstanding debt, % 98 76 52
 	Women	in	senior		leadership,	%2) 29.1 29.7 —
 	Injury	rate	(LTCR)	employees 0.06 0.05 0.06
1)  Compared to the baseline 2018.
2)  Historical figures have been updated. More information can be found on page 207.
For further definitions and reporting principles, see Sustainability Statement, starting on page 130.
88
SAFEGUARD HUMAN RIGHTS
High-risk	sites	in	value	chain	assessed	
on responsible business conducts, 
including	supplier	audits	and	People	
Policy	Assessments.
27%
31%
INCREASE RECYCLED MATERIAL  
IN OUR CARS
CO2 EMISSIONS REDUCTION PER CAR
With 27 per cent recycled material in 
the	EX60,	the	2025	ambition	of	25	per	
cent	recycled	and	bio-based	material	
in new car models was achieved.
We achieved a 31 per cent reduction in 
CO2 emissions per car, reaching our 2025 
ambition and strengthening our momen-
tum toward our ambition for net zero.
29%
WATER WITHDRAWAL REDUCTION 
PER MANUFACTURED CAR
Water efficiency measures resulted 
in a decrease of water withdrawal in 
absolute terms and in relation to 
manufactured cars.
KEY FIGURES SUSTAINABILITY
• We	met	our	2025	CO2 ambition with 31 per cent 
CO2 emission reduction per car, compared to 
the	baseline	2018.	Electrified	car	sales	reached	
46 per cent, contributing to reducing tailpipe 
CO2 emissions by 42 per cent.
• Climate	neutral	energy	in	own	operations	
reached 87 per cent. In 2025, four of our facto -
ries have transitioned to climate neutral energy 
meaning seven out of nine production sites are 
fully climate neutral.
• Two new electrified cars were launched, the 
ES90	and	XC70,	extending	our	portfolio	and	
meeting the customer demands. 
• Progress	on	circular	business	through	a	
 contract for closed loop steel that helps 
 mitigate cost for recycled materials. 
• Industry-leading	workplace	safety	achieved	
with	an	injury	rate	(LTCR)	of	0.06.
• Processes	within	our	human	rights	due	dili -
gence were enhanced, including conducting  
88	(96)	audits	and	People		Policy	Assessments	
in	high-risk	sites	in	our	value	chain	as	well	as	
addressing 85 per cent of corrective action 
plans	from	previous	RBA	VAP	audits.	
• The share of green debt, in accordance with 
our	Green	Financing	Framework,	or	sustaina -
bility-linked	format	increased	to	98	per	cent	
of outstanding debt. The issuance of our fifth 
green bond contributed to closing in on our 
100 per cent ambition 2025. 
SUBSEQUENT EVENTS
• The	new	EX60	was	launched	in	January	2026.	
With 27 per cent recycled content, it overa -
chieves our 2025 ambition of 25 per cent in 
new car models and sets new standards with 
the	lowest	CO 2 footprint in our fleet to date.
• The	new	multi-adaptive	safety	belt	was	
launched	in	the	new	EX60	demonstrating	a	
continued focus on innovative technology to 
improve safety in our cars.
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
12 VOLVO CAR GROUP  / OVERVIEW / 2025	HIGHLIGHTS

===== SIDA 13 =====

In April last year I returned to Volvo	Cars.	It	has	been	an	exciting	
yet demanding year since then. The automotive industry has 
seldom been faced with so many new challenges at the same 
time.	Slowing	growth,	regionalisation	of	the	world,	a	transition 	
towards	electrification	and	software-defined	cars,	as	well	as	
intensifying	competition	from	new	Chinese	car		makers.
With all this uncertainty, it can be easy to lose perspective. 
For	us	however,	the	future	of	our	company	is	clear.
Some	years	ago,	we	made	the	bold	decision	that	the	future	of	
Volvo	Cars	must	be	electric.	Today,	we’re	even	more	convinced	
that this is the right choice. Not only to address the climate 
challenge,	but	also	to	meet	customers’	expectations	for	better	
and more attractive cars. 
This	is	where	our	recently	revealed	EX60	model	comes	in.	
Just	like	the	XC90	marked	the	beginning	of	a	new	era	in	2014,	
the	EX60	signals	the	next	chapter	for	Volvo	Cars	as	leader	in	  
the	all-electric	premium	segment.
We	know	that	some	people	still	hesitate	to	go	all-electric	
for three main reasons: concerns about range, charging time 
and price.
With	the	EX60,	we	directly	address	these	concerns.	It	has	
class-leading	range	similar	to	many	petrol	cars.	Charging	stops	
take	just	as	long	as	a	normal	fuel	and	coffee	stop.	  
Focused on a clear strategic 
roadmap as well as  
short-term performance
And	most	importantly,	the	EX60	will	be	priced	in	line	with	our	
best-selling	XC60	plug-in	hybrid.	On	top	of	that,	it	will	be	offered	
in a new commercial concept, designed around simplicity, trans-
parency and precision. 
Well-positioned to grow 
Equally	important	is	that	the	EX60,	with	its	game-changing	
new	technologies,	shows	how	we	can	meet	the	expectations	  
of our customers while growing volume and profitability.
We	are	structurally	building	a	company	towards	a	long-term	
EBIT	margin	of	over	8	per	cent,	strong	positive	cash	flows	and	
growth driven by electrification.
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
          We are structurally building a 
company towards a long-term EBIT 
margin of over 8 per cent, strong 
positive cash flows and growth 
driven by electrification. 
13 VOLVO CAR GROUP  / OVERVIEW / CEO	LETTER

===== SIDA 14 =====

With a strong electric product portfolio, built on the new 
cost-efficient	and	scalable	SPA3	architecture,	 Volvo	Cars	is	
well-positioned	to	make	this	happen.
I believe that we are also in a better position than our peers 
to	tackle	the	growing	competition	from	Chinese	automakers,	
both	within	China	and	in	Europe.	Our	unique	relationship	with	
Geely gives us the opportunity to work even closer to lower 
development costs and to bring new cars to the market quicker. 
Together we are creating a leaner, more resilient supply chain.
The	XC70	long-range	plug-in	hybrid	shows	how	this	works	in	
practice and can deliver quick results. 
The	successful	execution	of	our	cost	and	cash	action	plan	
during 2025 is a good foundation for further profitable growth. 
In 2026 we will continue to focus on lowering variable and indi -
rect costs, in combination with actions to increase sales. 
An encouraging sustainability development
Summarising	2025	should	also	include	our	sustainability	
 progress. The commitment to becoming an electric car maker 
underpins our sustainability ambitions for 2030 and beyond 
and we are ahead of our competitors on most sustainability 
metrics.
I’m particularly proud to see that we achieved our goal of 
reducing	our	CO2 footprint with a 31 per cent reduction per car 
compared with the 2018 baseline.
We also made significant progress in usage of climate neutral 
energy in our operations and we achieved climate neutral 
 status at seven of our nine manufacturing plants.
In	terms	of	our	products’	footprint,	the	new	EX60	leads	by	
example.	It	has	the	lowest	carbon	footprint	of	any	electric	
Volvo	car,	matching	that	of	the	much	smaller	EX30.	The	EX60	
also comes with the highest amount of recycled materials in 
any electric Volvo. In addition, the introduction of mega casting 
and	cell-to-body	on	the	SPA3	platform	further	reduces	manu -
facturing waste and material use.
The right strategy
We are navigating one of the most challenging periods that 
I have seen the industry go through.
However, I am confident that Volvo	Cars	has	the	right	strat-
egy to ride the storm and emerge as a stronger, more profitable 
company.
We	will	continue	a	resolute	execution	of	our	longer-term	
strategy	and	at	the	same	time	focus	on	shorter-term	improve -
ments of both cost and sales performance.
Håkan Samuelsson 
CEO,	Volvo	Cars
SHARE OF 
ELECTRIFIED SALES
46%
FREE CASH FLOW 
SEK BN
          We will continue a  
resolute execution of our 
longer-term strategy and at 
the same time focus on 
shorter-term improvements 
of both cost and sales  
performance.
0
2221 23 24 25
SEK bn
–9,0
3,0
OVERVIEW 
PURPOSE	
ABOUT	VOLVO	CARS	
2025	HIGHLIGHTS	
CEO	LETTER	
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
14 VOLVO CAR GROUP  / OVERVIEW / CEO	LETTER

===== SIDA 15 =====

Market
OVERVIEW 3
MARKET 
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
15 VOLVO CAR GROUP

===== SIDA 16 =====

Sales and market development
Throughout the full year 2025, the global passenger car market 
 operated under challenging and uneven conditions, influenced by a 
 combination of macroeconomic pressures, geopolitical tensions, as well 
as	regulatory	and	trade-related	developments.	The	industry’s	transition	
towards electrification progressed at a moderated pace during 2025. 
Overall,	the	year	was	characterised	by	restrained	demand	and	intensified	
competition. The profitability of the industry has been under pressure 
especially	in	the	light	of	tariffs	and	writedowns	by	several	OEMs,	leading	
to a heightened focus on profitability as well as efficiency.
Volvo	Cars’	full-year	retail	deliveries	reached	710.0	(763.4)	thousand	
cars. Wholesales decreased by 11%, and production decreased by 9% to 
694.2	(760.4)	thousand	cars.	Despite	the	headwinds	during	2025,	 Volvo 
Cars	remained	committed	to	navigating	uncertainty	while	positioning	
the business for sustainable growth. The focus remains on efficiency, 
cost control and strengthening the core business, providing a solid foun -
dation	for	when	market	conditions	stabilise.	Sales	of	BEVs	decreased	by	
13%	to	151.8	(175.2)	thousand	cars,	and	PHEV	sales	decreased	by	3%	
compared to 2024.
Europe
The	overall	European	passenger	car	market	increased	by	2%	compared	
to 2024, while the premium car market declined by 4%. The electrified 
segment	continues	to	show	momentum,	with	both	BEV	and	PHEV	sales	
increasing by 27% and 35% respectively.
China
The	total	Chinese	passenger	car	market	increased	by	2%	year-on-year,	
of	which	the	BEV	segment	increased	by	28%	and	the	PHEV	segment	
increased by 5%. The premium segment decreased by 15% compared to 
2024.	Consumer	demand	continues	to	shift	from	combustion-engine	
models to electrified cars, where competition is intense and domestic
brands are dominating.
US
The	total	US	passenger	car	market	increased	by	3%	compared	to	2024,	
and	the	premium	market	increased	by	1%.	BEV	sales	increased	by	6%	
while	PHEV	sales	decreased	with	9%.	The	US	automotive	market	contin -
ued to be affected by evolving policy conditions, trade dynamics and 
broader economic uncertainty.
Volvo Cars’ market share per  
propulsion type, % 1) 2)
Full year 
2025
Full year 
2024
BEV 1.16 1.46
PHEV 3.07 3.80
ICE	(incl.	mild	hybrids) 0.75 0.72
Volvo	Cars’	share	of	total	market 1.00 1.04
Total industry volume share and growth by 
 propulsion type, % 1) 2)
Full year 
2025
Full year 
2024
BEV 19 16
EREV 2 —
PHEV 8 7
ICE	(incl.	mild	hybrids) 72 77
Total 100 100
1)  Volvo Cars is and will continue to be positioned in the premium segment of the 
automotive market. As the market is transforming with electrification and  
digitalisation the definition of premium is being redefined. To simplify and to avoid 
the risk of excluding important parts of the market, market share is reported in 
relation to the global passenger market. 
2)  Includes content supplied by S&P Global Mobility Industry Performance, February 
2026, capturing more than 85 per cent of total world sales. All rights reserved.
Retail sales (k units) 2025 2024 2023
Europe 332.7 369.7 294.8
China 149.5 156.4 170.1
US 121.6 125.2 128.7
Other 106.2 112.1 115.1
Retail sales total 710.0 763.4 708.7
Electrified	cars 323.3 352.8 266.0
 whereof BEVs 151.8 175.2 113.4
Electrified	cars	share 46% 46% 38%
 whereof BEV share 21% 23% 16%
Wholesales 693.0 782.6 732.3
Production	volume 694.2 760.4 766.7
Global automotive market
OVERVIEW 3
MARKET 
GLOBAL	AUTOMOTIVE	MARKET	
MARKET	DEFINING	TRENDS	
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / MARKET 
16

===== SIDA 17 =====

Climate	change,	as	a	part	of	the	triple	
planetary	crisis	(climate	change,	biodi-
versity	loss	and	pollution)	is	reshaping	
society, driving shifts in attitudes, poli-
cies, and innovation. Transportation is a 
major	source	of	emissions,	making	the	
 transition to battery electric vehicles 
critical.	BEVs	are	the	fastest-growing	
segment in the passenger car market. 
Despite some headwinds and some-
what	softer	demand	than	expected,	
global	BEV	sales	rose	by	23	per	cent	in	
2025.
CLIMATE CHANGE AND  
ELECTRIFICATION
Volvo	Cars	is	fully	committed	to	reduc-
ing emissions across the entire value 
chain.	Electrification	remains	central	to	
our strategy for eliminating tailpipe 
 emissions, and we continue t o expand	
our range of electric vehicles. Mean-
while, we are refreshing our plug-in	
hybrid	(PHEV)	cars	for		customers	and	
 markets that are not yet fully ready to 
transition.
Market 
defining 
trends
The retreat of globalisation and the rise 
of geopolitical polarisation are reshap-
ing the global landscape, wit h long-term	
 consequences that remain uncertain. 
Political	instability	and	unpredictability	
are becoming the new normal, while 
competition – particularly from emerg-
ing	Chinese	OEMs	–	is	intensifying.	In	
this environment being adaptable and 
agile is no longer optional, it is essential 
for building resilience and driving 
	long-term	value	creation.
POLARISATION, DEGLOBALISATION  
AND REGIONALISATION
As globalisation recedes, we are adapt-
ing to a more regionalised world. This 
shift calls for a tailored approach 
across	product	development,	tech-
nology, manufacturing, and commercial 
strategy. By empowering our regions 
to respond to local customer needs and 
market dynamics, we enhance our 
resilience and position ourselves for 
sustainable and profitable growth.
Innovation in the automotive industry is 
accelerating. Advances in battery tech-
nology and charging infrastructure drive 
electrification,	while	software-defined	
vehicles transform design and user 
experience.	AI	is	optimising	processes	
and enables faster responses to market 
demands. The convergence of comput-
ing power, connectivity, and data ana-
lytics, combined with AI, ushers in a new 
technological era, redefining mobility 
and making adaptability and innovation 
more critical than ever.
TECHNOLOGY AND AI
We continue to test and deploy at 
speed with clear intent, unlocking 
	benefits	such	as	lower	costs.	Super-
computers	and	in-house	software	 
now	pave	the	way	for	next-generation	
infotainment	systems,	over-the-air	
upgrade capabilities, enhanced safety, 
energy management, and other 
 services.
The automotive industry is undergoing 
intense disruption and competition. 
Electrification	and	software-defined	
vehicles are accelerating innovation 
cycles, while geopolitical tensions and 
trade barriers are reshaping global 
supply	chains.	Legacy	automakers	face	
growing competition from agile start-
ups	and	rapidly	expanding	Chinese	
brands. 
HYPER COMPETITION
Volvo	Cars	tackles	intense	competition	
with a focus on electrification, agility, 
and regionalisation – tailoring products, 
manufacturing and commercial strate-
gies	to	local	market	needs.	Collabora-
tion, especially with Geely, accelerates 
innovation, reduces costs, and speeds 
up	time-to-market.	Hardware	synergies	
with	Geely,	the	third	largest	BEV	player	
in the world gives Volvo	Cars	an	unique	
position,	especially	in	China.	This	
approach strengthens competitiveness 
and resilience amid industry disruption.
Volvo Cars’ approach
OVERVIEW 3
MARKET 
GLOBAL	AUTOMOTIVE	MARKET	
MARKET	DEFINING	TRENDS	
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / MARKET 
17

===== SIDA 18 =====

Our strategic 
framework
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
1818 VOLVO CAR GROUP

===== SIDA 19 =====

OUR PURPOSE 
– WHY WE ARE HERE
Our	reason	for	existing	and	the	  
impact we strive to make. 
To provide freedom to move in 
a personal, sustainable and 
safe way. 
 
READ MORE ON PAGE 2
 
OUR BRAND 
– WHO WE ARE
The identity and values 
that define us.
Freedom	to	move.	 
By	Sweden.	For	life.
 
READ MORE ON PAGE 4 
OUR CULTURE & LEADERSHIP 
– HOW WE ACT
The behaviors and leadership principles 
that create the  environment w e want.  
How	we	work	is	just	as	important	as	
what  we do.
READ MORE ON PAGE 20 
OUR STRATEGIC DIRECTION 
– WHERE WE WANT TO BE
Our	strategy	for	the	future	and	the	path	
to get there. 
 
READ MORE ON PAGES 21–28
OUR ACTIONS 
– WHAT WE NEED TO DELIVER NOW
The priorities and initiatives that  
turn strategy into reality. 
Our strategic framework is the foundation 
that guides everything we do  
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
19 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 20 =====

Culture 
We keep it simple:	We	reduce	complexity,	
focus on what matters most and make it easier 
for everyone to work better together. 
We stay curious:  We keep learning, ask ques-
tions,	seek	insights	and	explore	new	ideas	to	
drive speed and innovation. 
We are all in: We work as one team, commit to 
delivering high quality results and do not give 
up even when things get  difficult. 
Leadership 
Create clarity:  We ensure our teams are focused 
on the right things. We communicate clearly to 
enable	faster	execution.	
Lead with courage:  We dare to take decisions  
and step forward in uncertainty. We have open 
conversations to achieve high performance. 
Take full ownership: We act responsibly, follow 
through and own results. We role model account-
ability and empowering everyone to grow. 
Our guiding principles
OUR CULTURE AND LEADERSHIP / HOW WE ACT
READ MORE ON PAGE 200
We	focus	on	strengthening	trust,	uniting	our	teams,	and	creating	long-term	
value by evolving how we think, act, lead, and work together – guided by our 
shared culture that is everyone’s responsibility.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
20 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 21 =====

Human-centric customer  
experience
We build lasting consumer relationships aligned with our 
	purpose:	Personal,	Sustainable	and	Safe.
We provide a premium offering across channels, aligned with 
consumer	expectations.
High-performing committed  
organisation 
We are a lean organisation with a regional structure that 
	enables	speed,	synergies	and	customer	proximity.	
We develop our people, foster a growth mindset and build 
a high-performance	culture.
Premium electrified products  
for a regionalised world
We	are	committed	to	cost-efficient	electrification	with	
hybrids as a bridge.
We	are	leaders	in	purposeful	technology	and	real-life	safety.
Our strategic  direction to  profitable growth
READ MORE ON PAGE 22 READ MORE ON PAGE 24 READ MORE ON PAGE 26
OUR STRATEGIC DIRECTION / WHERE WE WANT TO BE
Our	strategic	direction	to	profitable	growth	is	unmistakable:	we	are	building	a	stronger,	more	profitable	Volvo 
Cars.	We	are	taking	decisive	actions	to	structurally	position	the	company	for	long-term	success	–	targeting	
an	EBIT	margin	of	over	8	per	cent,	strong	positive	cash	flows,	and	growth	through	electrification.	Our	strategic	
direction	is	built	on	three	pillars:	Human-centric	customer	experience,	High-performing	committed	
	o		rganisation	and	Premium	electrified	products	for	a	regionalised	world.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
21 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 22 =====

Safety	is	our	founding	principle	and	remains	at	the	heart	of	
everything	we	do.	Sustainability	is	not	a	checkbox,	but	a	core	
responsibility, to the planet and to our business. Technology is 
never added for its own sake, but only when it truly enhances 
people’s lives. This purposeful approach defines who we are 
and how we will shape the future of mobility, while delivering an 
exceptional	customer	experience.	
When it comes to our cars, we are convinced that the future 
is electric, because it is simply the better choice. We are ready 
to go fully electric when our customers are. Today, we offer 
fully electric models for those ready to make the shift, and 
plug-in	hybrids	for	markets	and	customers	still	transitioning.	
Step	by	step,	we	are	removing	the	key	barriers	of	range,	
 charging speed, and cost, to make full electrification more 
accessible.
Improving the buying experience – with possibility 
for instant delivery
We are also making changes to how we package our various 
offerings.	Buying	a	car	should	be	hassle-free.	Customers	deserve 	
clarity	on	what	is	included,	transparent	pricing,	and	flexible	time-
lines	based	on	individual	preferences.	Simplicity,	transparency,	
and precision are essential to building lasting relationships, and 
we are now driving improvements across all these areas.
Through	an	ongoing	pilot	in	Sweden,	we	are	introducing	a	new,	
convenient	way	to	purchase	a	car	online.	Customers	can	choose	
when their preferred car will be delivered – from immediate deliv-
ery to a time that best suits their individual needs. 
We are also simplifying the offering by reducing the number of 
variants,	making	it	easier	for	customers	while	reducing	complex-
ity	for	us.	For	those	customers	who	prefer	a	complete	solution,	
we	aim	to	provide	a	transparent	consumer-friendly	monthly	price	
that covers everything – from home charging solutions to insur-
ance, maintenance and other services simplifying the ownership. 
Variant	reductions	further	support	a	faster	order-to-delivery	pro-
cess with more digitalised tools and predictability, enabled by AI.
Human-centric customer experience
Everything	starts	with	our	brand	–	to	offer	something	truly	different	with	human	
	centricity	across	everything	we	do	and	aligned	with	our	purpose:	Personal,	Sustainable,	
and	Safe.	Across	all	channels,	we	are	aiming	to	provide	a	premium	experience	tailored	
to		consumer	expectations	and	designed	to	meet	their	needs	seamlessly.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
22 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 23 =====

Marketing is a key driver of growth and prof-
itability. With our new approach, we aim to 
attract more customers to the Volvo	Cars	
brand	while	lowering	overall	costs.	Rather	
than	broad,	one-size-fits-all	campaigns,	we	
will focus on flagship models in priority loca -
tions and markets, creating powerful halo 
effects that elevate our entire portfolio and 
secondary markets. 
This	shift	is	supported	by	a	truly	data-
driven approach, where marketing spend is 
continuously optimised based on what drives 
brand	impact	and	sales.	Through	A/B/C	test-
ing	and	AI-enabled	tools,	we	can	quickly	
evaluate and refine campaigns across all 
channels. The direct connection between the 
ad and offer on the website further creates 
efficiency,	shortening	the	lead-to-buy	
 process and acquisition cost. 
This strategy enables us to deliver more 
relevant, locally adapted messaging while 
reducing total marketing spend per car.
NEW APPROACH TO MARKETING: 
Leveraging halo 
strategies to 
strengthen brand 
perception and 
reduce cost
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
23 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 24 =====

Greater accountability, improved efficiency,  
and faster decision-making
To support our ambition for profitable growth, we are now 
implementing changes in our organisation and in the way we 
work.	Our	new	simplified	structure	is	guided	by	the	principle	
that structure alone does not drive success. True performance 
comes from the ability to seamlessly collaborate across func -
tions, enabling greater accountability, improved efficiency, and 
faster	decision-making.	The	approach	includes	fewer	organisa -
tional layers, a reduction in managerial roles, and positions with 
broader scope and increased responsibility. 
A regional structure designed to enable speed  
and customer proximity 
To enable speed, create synergies, and maintain strong cus -
tomer	proximity,	we	will	operate	as	a	lean	organisation	with	a	
regional structure. This approach allows us to respond quickly 
to market changes, leverage local insights, and deliver consist -
ent	value	across	regions.	By	reducing	complexity	and	fostering	
collaboration, we ensure agility and efficiency in every part of 
the business.
Regionalisation	enables	a	tailored	approach	in	our	key	regions	
across product, technology, manufacturing, and commercial 
areas. This empowers regions to meet customer and retailer 
needs faster, driving growth. The shift strengthens local account -
ability	and	decision-making	while	aligning	roles	with	business	
 priorities. We will also develop and track certain regional metrics 
to measure holistic performance across all functions.
Culture and Leadership  
– Driving Performance and Engagement 
At the same time, we focus on developing our people, fostering a 
growth	mindset,	and	building	a	high-performance	culture.	This	
means empowering teams with the right tools, encouraging inno -
vation, and embedding accountability and continuous improve -
ment	in	daily	work.	Our	goal	is	to	combine	operational	excellence	
with an engaged workforce for sustainable growth.
Our	Culture	and	Leadership	Principles	guide	behaviors,	deci -
sions, and collaboration across the organisation. By embracing 
these principles, we create an environment where innovation and 
teamwork	thrive	–	driving	long-term	high	performance.
A high-performing  
committed organisation 
As	part	of	our	transformation	journey,	we	are	now	implementing	a	simplified,	
regional structure that enhances speed, accountability, and customer focus, 
while embedding a culture of innovation and high performance.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
24 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 25 =====

In 2025, Volvo	Cars	launched	an	accelerated	cost	
and	cash	action	plan	totaling	SEK	18	billion.	As	part	
of the action plan, redundancies were announced. 
In all, 3,000 positions including consultants, were 
affected. These structural changes were consid -
ered essential to deliver on our cost efficiency 
ambitions, while also improving operational effi -
ciency	and	accelerating	decision-making.	
The redundancy process was guided by fairness 
and respect for each individual, transparency and 
strategic alignment. Decisions were based on 
length of employment and qualifications, aligned 
with	union	agreements.	Every	position	was	evalu -
ated	for	affordability	and	long-term	sustainability	
rather	than	competence	shift.	Looking	ahead,	our	
goal	is	a	right-sized	organisation	that	is	lean,	effi -
cient	and	future	ready.	We	are	embedding	flexibil -
ity through global standards with room for regional 
adjustments,	ensuring	resilience	in	a	changing	
industry.
Organisation fit  
for the future
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
25 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 26 =====

Premium electrified products 
for a regionalised world
Electrification	is	not	just	a	technological	shift	–	it	is	a	significant	opportunity	for	
Volvo	Cars	to	grow	profitably.	Going	forward,	we	will	capitalise	on	our	game- 
changing,	uncompromised	BEV	architecture,	as	well	as	our	hardware	collaboration	
with Geely and our regionalised approach, to offer competitive and tailored products 
for	each	market.	And	by	introducing	long-range	PHEVs,	we	will	also	bridge	the	gap	
for customers not yet ready to make the full transition to electric mobility. 
Regionalisation: supporting a stronger offer  
and increased  profitability 
As globalisation recedes, we need to adapt to a more regional -
ised world. This shift calls for a tailored approach across prod -
uct development, technology, manufacturing, and commercial 
execution.	By	tailoring	cars	to	specific	market	needs	and	cus -
tomer groups – using the right materials and technologies, built 
in the right locations – we aim to reduce logistical and tariff 
costs, while boosting growth. By empowering our regions to 
respond to local customer needs and market dynamics, we 
enhance our resilience and position ourselves for sustainable 
growth.
Electrification: The way forward 
Our	commitment	to	going	fully	electric	remains	unwavering.	
In 2025, 46% of our total sales were electrified, including both 
fully	electric	and	plug-in	hybrid	models,	with	nearly	one	in	five	
cars sold being fully electric.
We	have	a	strong	BEV	portfolio	and	the	new	EX60,	intro -
duced in the beginning of 2026, will significantly increase our 
potential customer base as we now enter the largest and most 
popular	fully	electric	segment.	The	EX60	is	a	game-changer	in	
terms of price, performance and cost.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
26 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 27 =====

A pragmatic approach
While we are ready to go fully electric when our customers are, 
varying rates of market adoption will mean different transition 
speeds	across	regions.	Demand	for	plug-in	hybrids	remains	
stronger	than	expected,	so	to	meet	diverse	local	needs,	we	are	
taking a pragmatic approach to our product strategy. Accord -
ingly,	we	will	shape	our	PHEV	lineup	to	provide	an	attractive	
bridge	for	customers	who	want	the	benefits	of	a	BEV	but	need	
the	back-up	plan	for	occasional	longer	journeys	–	particularly	
where charging infrastructure is still developing. We are making 
affordable investments into substantial design and hardware 
upgrades	for	our	existing	line-up	of	PHEVs,	making	them	even	
more	compelling	and	relevant.	And	our	second- 	generation	
PHEVs,	which	will	deploy	the	battery	as	the	primary	power	
source	with	an	engine	as	a	back-up,	will	complete	the	bridge	
towards electrification without the need for investment in new 
platforms.
Increased collaboration with Geely
To	further	reduce	costs	and	accelerate	time-to-market,	we	
will expand	our	collaboration	with	Geely.	The	collaboration	aims	
to	enable	global	hardware	synergies,	scale	in	Eastern	technol -
ogy	for	China	and	collaborate	on	local	products	with	shared	
componens. Th e ambition is to increase synergies by leveraging 
scale, reducing variants and increase commonality across prod -
ucts	and	platforms.	Focusing	on	hardware,	we	aim	to	increase	
common volumes of standardised modules. This will enhance 
our sourcing power, improve access to innovation and technol -
ogy,	reduce	complexity,	streamline	development,	and	
strengthen	resilience.	For	software	there	will	be	a	clear	separa -
tion	between	the	Eastern	and	Western	software	stacks,	where	
Eastern	technology	for	China	will	be	in	focus.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
27 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 28 =====

The launch of the EX60 marks the debut of SPA3 – our first 
uncompromised BEV platform, delivering unprecedented 
scalability and flexibility for future models.
SPA3	brings	profound	improvements	on	how	we	design,	
develop, manufacture and improve cars. With the new plat -
form we will for the first time in history be able to continu -
ously develop and build cars of all sizes – larger than the 
EX90	and	smaller	than	the	EX30	–	using	the	same	technol -
ogy base. The platform will be transformative for the prod -
ucts themselves, for our customers, and for our cost base. 
By removing the constraints of the combustion engine, 
SPA3	unlocks	entirely	new	ways	to	scale	and	modularise	
Fully software defined (one-track software)
SPA3	underlines	our	leadership	in	software	defined	vehicles.	
Underpinned	by	one	software	stack,	all	our	engineering	
efforts can now be focused on a single direction to power all 
our products. This approach ensures our cars improve over 
time	through	continuous	innovation	and	over-the-air	updates.	
It simplifies vehicle architecture by centralising computing, 
reducing	hardware	complexity	and	cost.	This	approach	
enhances safety, personalisation, and connectivity. It also 
supports faster development cycles, better data utilisation, 
and	improved	sustainability	by	extending	hardware	lifecycles	
through software upgrades. 
All-in-all,	this	will	bring	transformative	advantages	for	the 	
products themselves, for our customers, and for our cost base. 
cars,	enabling	a	unified	setup	for	batteries,	e-machines,	  
climate control, chassis, and electronics.
Lower costs and accelerated innovation
Vertical	integration	of	owned	key	technologies,	like	electric 	
motors, and software – reduces dependency on suppliers, 
lowers costs, and accelerates innovation. Meanwhile horizon -
tal optimisation – leveraging shared platforms, components, 
and	partnerships	across	products	–	reduces	complexity, 	
increases commonality, and improves economies of scale. 
Combined,	they	will	strengthen	resilience,	streamline	devel -
opment,	and	support	profitable	growth	in	a	competitive	EV 	
market.
SPA3 – A game changer
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 
OUR	GUIDING	PRINCIPLES	
OUR	STRATEGIC	DIRECTION	
CUSTOMER	EXPERIENCE	
COMMITTED	ORGANISATION	
ELECTRIFICATION	AND	 
REGIONALISATION	
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
28 VOLVO CAR GROUP  / OUR	STRATEGIC	FRAMEWORK

===== SIDA 29 =====

Directors’ report
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
29 VOLVO CAR GROUP

===== SIDA 30 =====

The Volvo Car Group
Volvo	Car	AB	(publ.)	together	with	its	wholly-owned	subsidiary	
Volvo	Car	Corporation	and	its	subsidiaries	are	jointly	referred	to	as	
“Volvo	Car	Group”	or	“Volvo	Cars”.
Volvo	Car	AB	(publ.),	registration	number	556810-8988,	with	its	
registered	office	in	Gothenburg,	Sweden,	is	a	publicly	listed	com -
pany	on	the	Nasdaq	Stockholm	Stock	Exchange	traded	under	the	
ticker	VOLCAR.	The	largest	owner,	holding	78.65	per	cent	of	shares		
and	capital,	is	Geely	Sweden	Holdings	AB,	owned	by	Shanghai	Geely	
Zhaoyuan	International	Investment	Co.,	Ltd.,	registered	in	Shanghai,	
China,	and	ultimately	owned	by	Zhejiang	Geely	Holding	Group	Ltd.,	
registered	in	Hangzhou,	China.	Volvo	Car	AB	(publ.)	holds	shares	in	
its	subsidiary	Volvo	Car	Corporation	and	provides	the	Group	with	
certain	financing	solutions.	Volvo	Car	AB	(publ.),	indirectly	through	
Volvo	Car	Corporation	and	its	subsidiaries,	operates	in	the	automo -
tive industry with business relating to design, development, manu -
facturing, marketing and sale of cars and thereto related services.
 
Board of Directors’ Report
Volvo Cars’ sales development 
Throughout the full year 2025, the global passenger car market 
operated under challenging and uneven conditions, influenced by a 
combination of macroeconomic pressures, geopolitical tensions, as 
well	as	regulatory	and	trade-related	developments.	The	industry’s	
transition towards electrification progressed at a moderated pace 
during	2025.	Overall,	the	year	was	characterised	by	restrained	
demand and intensified competition. The profitability of the indus -
try has been under pressure especially in the lights of tariffs and 
writedowns	by	several	OEM’s,	leading	to	a	heightened	focus	on	
profitability as well as efficiency. 
Volvo	Cars’	full-year	retail	deliveries	reached	710.0	(763.4) 	
 thousand cars. Wholesales decreased by 11 per cent, and production 
decreased	by	9	per	cent	to	694.2	(760.4)	thousand	cars.	Despite	
the	headwinds	during	2025,	Volvo	Cars	remained	committed	to	nav -
igating uncertainty while positioning the business for sustainable 
growth. The focus remains on efficiency, cost control and strength -
Key ratios, SEKm 2025 2024 2023 2022 2021
Retail sales, units 1) 710,042 763,389 708,716 615,121 698,693
Revenue 357,263 400,234 399,343 330,145 282,045
Research and development expenses –26,067 –16,983 –12,884 –11,514 –12,714
Operating income, EBIT 2) 303 22,318 19,939 22,332 20,275
EBIT excl. share of income from JVs and associates 2) –351 27,040 25,567 17,889 21,226
EBIT excl. Items affecting comparability 2) 12,556 24,020 20,563 16,433 16,995
Net income –2,968 15,934 14,066 17,003 14,177
Basic earnings per share, SEK 0.06 5.17 4.38 5.23 4.72
EBITDA2) 35,679 45,048 37,386 38,423 35,280
Cash flow from operating activities 34,625 47,372 42,867 33,599 29,852
Cash flow from investing activities –32,176 –46,245 –51,842 –39,658 –34,737
Net cash 2) 26,871 27,115 27,487 38,061 44,846
Gross margin, % 2) 16.9 19.8 19.4 18.3 21.6
EBIT margin, % 2) 0.1 5.6 5.0 6.8 7.2
EBIT margin % excl. share of income from JVs and associates 2) –0.1 6.8 6.4 5.4 7.5
EBIT margin % excl. Items affecting comparability 2) 3.5 6.0 5.1 5.0 6.0
EBITDA margin, % 2) 10.0 11.3 9.4 11.6 12.5
Equity ratio, % 39.8 36.6 36.6 35.4 33.4
Return on invested capital, ROIC, % 2) 0.2 12.0 12.4 16.7 18.6
1)		Non-financial	operating	metric.
2)			Non-IFRS	measure	(alternative	performance	measure),	see	Alternative	performance	measures	on	page	115.
ening the core business, providing a solid foundation for when market 
conditions	stabilise.	Sales	of	BEVs	decreased	by	13	per	cent	to	151.8	
(175.2)	thousand	cars,	and	PHEV	sales	decreased	by	3	per	cent	
compared to 2024.
Retail sales (k units) 2025 2024 Change	%
Europe 332.7 369.7 –10
China 149.5 156.4 –4
US 121.6 125.2 –3
Other 106.2 112.1 –5
Retail sales total 710.0 763.4 –7
Electrified cars 323.3 352.8 –8
whereof BEVs 151.8 175.2 –13
Electrified cars share 46% 46%
whereof BEV share 21% 23%
Wholesales 693.0 782.6 –11
Production volume 694.2 760.4 –9
Retail sales by model (k units) 2025 2024
BEV
EX30 78.6 98.1
EX40 44.0 53.4
EX90 16.3 1.8
EC40 11.8 20.4
EM90 0.8 1.5
ES90 0.3 —
Non-BEV
XC60 230.7 230.9
XC40 123.0 120.5
XC90 103.2 108.6
V60 27.1 34.1
S60 26.3 44.0
S90 25.7 40.2
XC70 14.2 —
V90 8.2 9.9
Total 710.0 763.4
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / DIRECTORS’ REPORT 
30

===== SIDA 31 =====

Events during the reporting period
Two major tech upgrades in new Volvo cars
In January, it was announced that for the upcoming model year, 
there	will	be	two	main	tech	upgrades	for	the	XC40,	EX40,	EC40,	
S60,	V60,	V60	Cross	Country,	V90	and	V90	Cross	Country	models.	
Volvo	Cars	is	introducing	our	new-generation,	new-look	user	expe -
rience	to	our	whole	lineup,	as	well	as	the	ultra-fast	Snapdragon®	
Cockpit	Platform	from	Qualcomm	Technologies,	Inc.	This	makes	the	
infotainment system much faster and much more responsive. Addi -
tionally,	EX30,	EX40	and	EC40	models	in	Europe	will	get	the	service	
Plug	&	Charge,	for	an	even	smoother	public	charging	process.
EX30 Cross Country unveiled
In	February,	Volvo	Cars	unveiled	the	new	Volvo	EX30	Cross	Country.	
It	is	an	all-road	car	that	delivers	safety,	comfort	and	performance	in	
a	capable	and	adventurous	package.	The	Volvo	EX30	Cross	Country	
is available to order in selected markets. 
Volvo Cars completed the divestment of its 30 per cent 
shareholding in Lynk & Co 
In	February,	Volvo	Cars	divested	its	30	per	cent	shareholding	in	Lynk	
&	Co	Automotive	Technology	Co.,	Ltd	to	Zhejiang	Zeekr	Intelligent	
Technology	Co.,	Ltd.,	after	approval	at	an	Extraordinary	General	
Meeting	of	Volvo	Cars’	shareholders,	as	well	as	other	regulatory	
approvals. 
Volvo Cars revealed the all-new, fully electric Volvo ES90 
In	March,	Volvo	Cars	revealed	the	ES90	which	is	the	latest	addition	
to	the	balanced	product	portfolio	of	premium	Volvo	cars.	The	ES90	
is	the	second	car	on	the	SPA2	platform	equipped	with	a	core	com -
pute	system	and	built	on	the	Volvo	Cars	Superset	Tech	Stack.	It	was	
then	the	sixth	fully	electric	model	in	the	line-up,	joining	the	EX90,	
EM90,	EX40,	EC40	and	EX30	as	the	journey	towards	full	electrifica -
tion continues.
Volvo Cars uses AI and virtual worlds with the aim of 
 creating safer cars 
In	March,	Volvo	Cars	announced	it	is	using	AI-generated	life-like	
 virtual worlds to enhance the development of its safety software, 
such	as	driver	assistance	systems	(ADAS),	all	with	the	aim	of	creat -
ing	even	safer	cars.	From	now	on	Volvo	Cars	can	synthesise	incident	
data	collected	by	the	advanced	sensors	in	new	Volvo	cars,	such	as	
emergency braking, sharp steering or manual intervention, which 
allows	Volvo	Cars	to	probe,	reconstruct	and	explore	them	in	new	
ways to better understand how incidents can be avoided.
The new Volvo S90 revealed for Asian market
In	April,	the	new	plug-in	hybrid	Volvo	S90	was	revealed	for	Asia.	  
The	new	S90	features	our	new-generation	user	interface,	which,	as	
previously	announced,	is	coming	to	our	total	line-up.	In	September	
production	started,	using	climate-neutral	energy	in	Volvo	Cars’	
Chengdu	plant.
Cost and cash action plan of SEK 18 billion 
In	April,	Volvo	Cars	launched	an	accelerated	cost	and	cash	action	
plan,	totalling	SEK	18	billion,	to	protect	profitability,	drive	structural	
efficiencies on direct and indirect spend, as well as helping to offset 
external	headwinds.	The	plan	was	executed	during	the	year,	with	
removal of 3,000 positions, variable costs efficiencies from accel -
erated work on driving synergies through closer collaboration with 
Geely, and cutting back on planned investments to improve cash 
flow while safeguarding our future.
Volvo Cars and Google expand partnership
In	April,	Volvo	Cars	announce	d		an	expanded	partnership		with	
Google			,	to	more	rapidly	deliver	the	latest	Android	Automotive	OS	
innovations	to	customers	that	own	Volvo	models	with	Google	
built-in.	Volvo		Car	s	will	now	serve	as	one	of	Google’s	reference	
hardware platforms for future Android development in cars.
Volvo EX90 awarded
In	April,	the	all-electric	Volvo	EX90	was	appointed	the	most	impres -
sive	new	luxury	car	launched	in	the	past	12	months,	by	the	World	Car	
Awards	expert	jury.	Further,	in	November	it	was	announced	that	in	
the	most	recent	round	of	Euro	NCAP	safety	testing,	the	Volvo	EX90	
SUV	earned	the	maximum	five-star	rating,	placing	it	among	the	
highest-performing	cars	of	2025.
Volvo Cars introduced world first multi-adaptive safety belt 
In	June,	Volvo	Cars	unveiled	a	major	safety	improvement	to	the	
safety	belt.	The	new	multi-adaptive	safety	belt	is	a	world-first	tech -
nology	aimed	to	further	enhance	safety	for	everyone	in	real-world	
traffic	situations.	The	new	multi-adaptive	safety	belt	can	use	data	
input	from	interior	and	exterior	sensors	to	customise	protection,	
adapting the setting based on the situation and individual’s profiles, 
such as their height, weight, body shape and seating position. This 
will	be	debuting	in	the	upcoming	fully	electric	Volvo	EX60	in	2026.	
In	October,	Volvo	Cars	was	honoured	for	the	second	year	in	a	row,	
to	be	included	on	the	TIME	list	for	its	latest	safety	innovation,	as	
multi-adaptive	safety	belt  was recognised as one of the Best Inven -
tions of 2025. 
Volvo Cars announced one-off SEK 11.4 billion non-cash 
impairment charge
In	June,	Volvo	Cars	announced	that	the	company	is	adjusting	the	
financial	assumptions	for	the	EX90	and	ES90	platform,	with	reasons	
including previous launch delays and new import tariffs in several 
markets.	The	Volvo	EX90	will	have	a	reduced	lifecycle	profitability,	
despite	a	major	upgrade	of	software	quality	and	a	planned	volume	
ramp-up.	This	is	due	to	significant	launch	delays	in	the	past	and	
subsequent additional development costs. 
Top 10 retail sales by market (k units) 2025 2024
China 149.5 156.4
US 121.6 125.2
UK 68.7 66.4
Germany 59.8 62.0
Sweden 47.9 46.2
The Netherlands 20.0 30.7
Belgium 17.4 25.2
Poland 15.3 14.9
Türkiye 15.2 13.0
Spain 15.2 18.0
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / DIRECTORS’ REPORT 
31

===== SIDA 32 =====

Meanwhile, due to import tariffs the company is currently unable  
to	sell	the	Volvo	ES90	profitably	in	the	United	States,	while	ES90	
margins	are	also	under	pressure	in	Europe	for	the	same	reason.	  
In	light	of	the	above,	Volvo	Cars	recorded	a	one-off	non-cash	
	impairment	charge	of	SEK	11.4	bn.
Volvo Car AB (publ.) resolved on repurchase of own shares
During	the	second	quarter	2025,	Volvo	Cars	repurchased	a	total	of	
12,500,000 own shares of class B, repurchased for a total amount 
of	SEK	218,866,471.	Treasury	shares	are	purchased	to	secure	the	
future	delivery	of	shares	to	participants	in	Volvo	Cars’	Performance	
Share	Plans	(PSP)	adopted	by	the	Annual	General	Meeting	in	2023,	
2024	and	2025	and	Employee	Share	Matching	Plans	(ESMP)	
adopted by the Annual General Meeting in 2024. 
During 2025, a total of 2,098,557 shares were distributed to 
	participants	in	the	ESMP	share	matching	programmes	for	2022	and	
2023,	and	a	total	of	526,799	shares	for	the	PSP	programme.	As	at	
31	December	2025,	Volvo	Cars	held	14,894,838	own	shares.
Volvo Cars brings production of global best-seller  
XC60 to its US plant
In	July,	Volvo	Cars	announced	it	will	add	its	best-selling	XC60	
	mid-size	SUV	to	the	production	line	of	its	US	car	plant	in	Charleston,	
South	Carolina.	The	Charleston	facility,	which	also	assembles	the	
fully	electric	flagship	EX90,	is	scheduled	to	start	XC60	production	
in late 2026.
Volvo Cars completed its acquisition of NOVO Energy AB
In	July,	Volvo	Car	Corporation	finalised	the	acquisition	of	Northvolt	
AB’s	shares	in	NOVO	Energy	AB	and	became	100%	shareholder	of	
NOVO	Energy	AB.	This	completes	the	acquisition	process	which	
began	in	October	2024	when	Volvo	Car	Corporation	notified	its	
counterpart	in	the	joint	venture	NOVO	Energy	AB,	Northvolt	AB,	that	
Volvo	Cars	executed	its	redemption	right	to	acquire	Northvolt’s	50%	
shareholding	in	NOVO	Energy	AB.	
Reveal of the new Volvo XC70
In	August,	the	new	Volvo	XC70	SUV	was	revealed.	This	is	Volvo	Cars’	
first	long-range	plug-in	hybrid,	offering	an	all-electric	driving	range	
of	over	200km	under	the	CLTC	testing	cycle	–	the	longest	of	any	
Volvo	plug-in	hybrid	to	date.	It	is	designed	to	meet	growing	demand	
for	longer-range	plug-in	hybrids,	particularly	in	China.	
Volvo Cars continues to invest in South Carolina plant
In	September	it	was	announced	that	Volvo	Cars	will	continue	to	
invest	in	its	US	car	plant	in	Charleston,	South	Carolina,	with	the	aim	
of	reaching	full	utilisation	of	the	factory	in	coming	years.	Volvo	Cars	
has	already	invested	USD	1.3	billion	in	the	plant	in	the	last	decade,	to	
make	it	ready	for	the	future.	Through	these	investments,	Volvo	Cars	
intends to deliver both volume and financial growth as well as using 
the	plant’s	capacity.	The	Charleston	plant	currently	has	an	installed			
production capacity of 150,000 cars per year.
Volvo Cars’ Strategy Update Day
In	November,	Volvo	Cars	outlined	the	strategy	going	forward,	at	an	
event	for	investors	in	Stockholm.	During		the	event,	Volvo	Cars’	
management team presented how the organisation is being struc -
turally	built	to	achieve	a	long-term	EBIT	margin	of	over	8	per	cent,	
strong positive cash flows and growth through electrification.  
Green financing 2025
In	March,	a	drawdown	of	USD	438	m	was	made	under	an	existing	
bilateral loan facility with the purpose to finance investments that 
meet	the	eligibility	criteria	set	out	in	the	Volvo	Cars	Green	Financing	
Framework.	The	facility	was	originally	signed	in	2023/2024	and	will	
mature in 2035.
In	June,	Volvo	Cars	issued	its	fifth	green	bond	of	EUR	500	m,	with	
a	four-year	tenor.		The	proceeds	will	support	the	ambition	to	be	a	
leading	player	in	the	premium	electric	car	segment	and	achieve	net-
zero greenhouse gas emissions by 2040. This includes funding 
research and development of upcoming electric cars and platforms, 
and related manufacturing processes. The bond, along with all our 
previously	issued	green	bonds,	is	listed	on	the	Luxembourg	Stock	
Exchange.
In	September,	a	new	bilateral	eight-year	loan	agreement	of	EUR	
150 m was signed with the purpose to finance investments that 
meet	the	eligibility	criteria	outlined	in	the	Green	Financing	Frame -
work. The loan facility remains undrawn as per the end of 2025.
In	October,	an	existing	eight-year	credit	facility	of	CNY	3,090	m	
was	terminated,	and	the	drawn	amount	of	CNY	259	m	was	repaid.
In	November,	the	first	extension	option	on	the	existing	
sustainability	-linked	Revolving	Credit	Facilities	was	exercised,	
extending	maturities	by	one	year.	The	updated	maturities	for	the	
Revolving	Credit	Facilities	of	EUR	500	m	and	EUR	1,500	m	are	in	
2028 and 2030, respectively.
Changes in Board of Directors and the  Executive  
Management Team
Changes to the Board of Directors 
• 	On	31	March,	Jim	Rowan	left	the	Board.	
• On	3	April,	Håkan	Samuelsson	was	elected	as	a	new	member	of	
the	Board.	He	previously	served	on	the	Volvo	Cars	Board	and	as	
CEO	from	2012	to	2022.	He	served	as	Chairperson	of	Polestar	
until 2024.
• In	June,	Lone	Fønss	Schrøder	stepped	down	from	the	Board	of	
Directors	in	Volvo	Cars.	At	the	same	time	she	was	appointed	
Chairperson	of	the	Board	of	Geely	Sweden	Holdings,	and	will	  
represent	Geely	Sweden	Holdings	in	Volvo	Cars’	Nomination	
Committee.
• At	an	Extraordinary	General	Meeting	(the	“EGM”)	of	Volvo	Car	AB	
(publ.)	on	8	December	2025,	the	EGM	resolved	that	the	Board	of	
Directors shall consist of ten ordinary Board members elected by 
the	shareholders’	meeting	without	deputy	Board	members.	Pieter	
Nota	and	Caroline	Grégoire-Sainte-Marie	were	elected	as	new	
Board	members	until	the	end	of	the	next	Annual	General	Meeting.
Changes to the Executive Management Team
• In	April,	Håkan	Samuelsson	succeeded	Jim	Rowan	as	President	
and	Chief	Executive	Officer.	
• Fredrik	Hansson	was	appointed	Chief	Financial	Officer	(CFO),	
effective	from	24	April.	He	succeeded	Johan	Ekdahl,	who	left	
Volvo	Cars.
• From	1	June,	Olivia	Ross-Wilson	left	Volvo	Cars	and	her	position	
as	Global	Head	of	Communication.	She	was	succeeded	by	Jenny	
Åström,	and	the	position	was	moved	from	the	EMT	to	the	EMT	
Extended	(EMTe)	team.
• Structural	changes	were	made	to	EMT	during	August.	Erik	Sever -
inson	was	appointed	Chief	Commercial	Officer	and	Michael	Fleiss	
replaced	Erik	Severinson	as	Chief	Strategy	&	Product	Officer.	In	
addition,	Volvo	Cars	appointed	Product	Line	Owners	for	its	prod -
uct	lines.	These	are	a	part	of	the	EMT	Extended	(EMTe)	team	and	
report	to	the	Chief	Commercial	Officer.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / DIRECTORS’ REPORT 
32

===== SIDA 33 =====

Research and development
Over	the	past	year,	Volvo	Cars	has	made	significant	progress	in	
research	and	development,	centred	on	the	introduction	of	SPA3,		  
the	company’s	next-generation,	fully	electric	vehicle	architecture.	
Designed	as	an	uncompromised	battery	electric	vehicle	(BEV)	plat -
form,	SPA3	represents	a	major	technological	step	forward,	enabling	
scalability across the full product range, from compact to large 
 premium electric vehicles, while meeting requirements for perfor -
mance, cost efficiency, quality and sustainability. 
During	the	year,	Volvo	Cars	has	also	completed	a	major	transfor -
mation	toward	software-defined	vehicles	by	unifying	its	entire	
product	portfolio,	including	new	BEVs	and	next-generation	plug-in	
hybrids,	on	a	single	software	architecture.	This	“one-track”	software	
approach	enables	faster	development,	continuous	over-the-air	
upgrades,	improved	quality	and	long-term	product	competitiveness,	
while allowing functionality and performance to improve throughout 
the vehicle lifecycle.
Collectively,	these	developments	position	Volvo	Cars	at	the	fore -
front	of	electric	and	digital	vehicle	technology.	SPA3	is	delivered	on	
time, on cost and on quality, and forms a foundational platform for 
future	products	such	as	the	newly	launched	EX60.	The	past	year	has	
marked	a	decisive	shift	toward	fully	electric,	software-centric	vehi -
cles	designed	to	evolve	continuously	and	deliver	long-term	value	to	
both customers and the business.
Environment 
Volvo	Cars	has	a	long-standing	commitment	to	being	a	responsible	
company	with	a	clear	focus	on	sustainable	development.	Volvo	Car	
Group’s	Sustainability	Statement	has	been	prepared	in	accordance	
with	the	Swedish	Annual	Accounts	Act,	chapter	6,	European	
	Sustainability	Reporting	Standards	(ESRS)	and	the	EU	Taxonomy	
Regulation.	The	scope	and	content	of	the	Sustainability	Statement	
is defined on page 133 in this report. 
Employees 
In	2025,	Volvo	Car	Group	on	average	employed	42.6	(42.6)	thou-
sand	full-time	employees	(FTEs)	and	2.3	(3.4)	thousand	agency	
 personnel. The main driver behind the reduction in agency person -
nel is the effect from the restructuring programme. That effect is 
also	visible	for	FTEs	when	comparing	year	end	figures	for	2025	with	
2024 by about 2.3 thousand employees.
Proposed distribution of non-restricted equity
The parent company
The following funds are at the disposal of the Annual General  
Meeting	(AGM):
Share premium reserve SEK  31,653,517,859    
Retained earnings brought forward SEK  5,083,584,404    
Net income for the year SEK  4,355,103,303    
At the disposal of the AGM SEK  41,092,205,566   
The Board proposes the following allocation of funds: 
Carried forward SEK  41,092,205,566   
Significant events after the reporting period
On	7	January,	Volvo	Cars	announced	the	appointment	of	Thomas	
Ingenlath	as	Chief	Design	Officer,	effective	1	February	2026.
On	21	January,	the	new	Volvo	EX60	was	released,	as	the	newest	
entry in our portfolio of electrified cars.
On	17	February,	Volvo	Cars’	largest	shareholder,	Geely,	reported	an	
increase	in	its	holdings	in	Volvo	Cars	by	0.22	per	cent,	as	Geely	
International	Hong	Kong	Limited	purchased	approximately	6.54	
	million	shares	between	6-16	February.	After	those	transactions,	
Geely’s	total	ownership	percentage	in	Volvo	Cars	is	78.87	per	cent.	
The Nomination Committee’s proposal for election of 
 members to the Board of Directors of Volvo Car AB (publ.)
The	Nomination	Committee	of	Volvo	Car	AB	(publ.)	has	decided	to	
submit the following proposals for  resolution at the Annual General 
Meeting of shareholders on 31 March 2026:
Re-election	as	members	of	the	Board	of	Directors:	Eric	Li	(Li	Shufu),	
Daniel	Li	(Li	Donghui),	Håkan	Samuelsson,	Jonas	Samuelson,	
Diarmuid	O’Connell,	Lila	Tretikov,	Ruby	Lu	(Rong	Lu)	and	Pieter	
Nota. 
Re-election	of	Eric	Li	(Li	Shufu)	as	Chairperson	of	the	Board	of	
Directors. 
Anna	Mossberg	and	Caroline	Grégoire	Sainte	Marie	have	declined	
re-election.
The	Nomination	Committee	proposes	Natalie	Knight	and	Markus	
Schäfer	to	be	elected	as	new	members	of	the	Board	of	Directors.	
Markus	Schäfer	with	effect	as	of	1	July	2026.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / DIRECTORS’ REPORT 
33

===== SIDA 34 =====

Remuneration guidelines to senior executives
The	following	principal	guidelines	for	remuneration	to	senior	execu -
tives were adopted at the Annual General Meeting held on 3 April 
2025. These guidelines shall be applicable to remuneration to the 
Executive	Management	Team,	including	the	CEO,	(“EMT”)	of	Volvo	
Car	AB	(“Volvo	Cars”).	The	guidelines	imply	that	the	People	Com -
mittee, instead of Board of Directors in its entirety, is responsible for 
certain resolutions pursuant to these guidelines. 
Types of remuneration
The	total	remuneration	package	for	the	EMT	may	consist	of	the	
	following	components;	fixed	remuneration,	variable	remuneration,	
pension benefits and other benefits. The components of remunera -
tion shall be in accordance with local market practice. Additionally, 
the general meeting may – irrespective of these guidelines – resolve 
on,	among	other	things,	share-related	or	share	price-related	remu -
neration.	Please	refer	to	Share-based	or	share	price-related	incen -
tive programmes below.
Variable cash remuneration
The	satisfaction	of	criteria	for	awarding	short-term	variable	cash	
remuneration shall be measured over a period of one year, whereas 
the	satisfaction	of	criteria	for	awarding	long-term	variable	remuner -
ation shall be measured over a period of three years.
For	the	CEO,	the	short-term	variable	cash	remuneration	may	not	
amount	to	more	than	200	per	cent	of	the	annual	fixed	base	salary	
on	31	December	at	the	end	of	each	performance	year,	and	the	long-
term variable remuneration may not amount to more than 150 per 
cent	of	the	annual	fixed	base	salary	the	year	the	programme	was	
implemented.	For	the	other	EMT	members,	the	short-term	variable	
cash remuneration may vary but not amount to more than 140 per 
cent	of	the	annual	fixed	base	salary	on	31	December	at	the	end	of	
each	performance	year,	and	the	long-term	variable	remuneration	
may vary but not amount to more than 120 per cent of the annual 
fixed	base	salary	the	year	the	programme	was	implemented.	For	
information	on	the	criteria	for	awarding	short-	and	long-term	varia -
ble	remuneration,	please	refer	to	Criteria	for	awarding	variable	
remuneration below. 
Extraordinary arrangements
Further	variable	remuneration	may	also	be	paid	out	in	extraordinary	
circumstances,	provided	that	such	arrangement	is	of	a	one-time	
nature and is agreed on an individual basis for management recruit -
ment	or	retention	purposes	or	as	compensation	for	extraordinary	
efforts	beyond	the	individual’s	ordinary	assignment.	Such	remuner -
ation	shall	be	in	line	with	market	practice	and	may	for	example	
include	a	one-time	cash	payment,	retention	bonus	or	severance	
payment in case of a change of control, or similar. The remuneration 
may	not	amount	to	more	than	the	annual	fixed	base	salary	for	1	year	
and	shall	not	be	paid	more	than	once	a	year	per	individual.	Resolu -
tions	on	such	compensation	shall	be	made	by	the	People	Committee	
based	on	a	proposal	from	the	CEO	if	an	EMT	member	(other	than	the	
CEO)	is	concerned	and	by	the	People	Committee	and	the	Chairper -
son	of	the	Board	of	Directors,	or	the	Vice	Chairperson	as	delegated,	
if	it	relates	to	the	CEO.
Share-based or share price-related incentive  programmes
The Board of Directors may, irrespective of these guidelines, pro -
pose	the	general	meetings	to	resolve	on	long-term	share-based	or	
share	price-related	incentive	programmes.	During	the	previous	
annual general meetings held from 2022 and onwards, the Board of 
Directors proposed, and the annual general meetings approved 
long-term	share-based	incentive	programmes	comprising,	amongst	
others,	the	EMT.	The	Board	of	Directors	intends	to	propose	forth -
coming annual general meetings to approve similar incentive pro -
grammes.	No	new	long-term	variable	cash	programmes	will	there -
fore	be	offered	to	the	EMT	as	long	as	there	is	a	long-term	
share-based	programme	in	place.
Criteria for awarding variable cash  remuneration
The	variable	short-term	cash	remuneration	shall	be	linked	to	prede -
termined	and	measurable	criteria	which	can	be	financial	or	non-fi -
nancial.	The	criteria	for	the	variable	short-term	remuneration	shall	
be	determined	yearly	by	the	People	Committee.
Variable	long-term	remuneration,	which	is	not	approved	by	the	
annual general meeting, if any, shall be linked to the satisfaction of 
certain	financial	performance	conditions	determined	by	the	People	
Committee	and	measured	over	the	term	of	the	programme.
For	both	short-term	and	long-term	variable	remuneration,	the	crite -
ria	may	also	be	individualised,	quantitative	or	qualitative	objectives.	
The criteria shall be designed to contribute to the company’s busi -
ness	strategy	and	long-term	interests,	including	its	sustainability.
To	which	extent	the	criteria	for	awarding	variable	remuneration	
have been satisfied shall be evaluated when the measurement 
period	has	ended.	The	People	Committee	is	responsible	for	the	
evaluation.	For	financial	objectives,	the	evaluation	shall	be	based	on	
the latest financial information made public by the company.
Pension benefits
For	the	CEO,	pension	benefits	shall	be	a	defined	contribution	
scheme, and the pension premiums may amount to not more than 
50	per	cent	of	the	annual	fixed	base	salary.	Variable	remuneration	
shall not qualify for pension benefits. 
For	other	EMT	members,	pension	benefits	shall	be	a	defined	con -
tribution scheme, and the pension premiums may amount to not 
more	than	30	per	cent	of	the	annual	fixed	base	salary.	No	current	
EMT	members	have	a	defined	benefit	pension.	However,	defined	
benefit	pension	can	be	offered	to	future	EMT	members	as	part	of	  
a	pre-existing	agreement.	To	the	extent	that	variable	remuneration	
qualifies for pension benefits under the applicable collective 
 bargaining agreement, the pension benefits shall be deducted from 
the payment and paid as pension.
Other benefits
Other	benefits	may	include,	for	example,	medical	insurance,	annual	
health	check-up	and	company	cars.	Such	benefits	may	amount	to	
not	more	than	20	per	cent	of	the	annual	fixed	base	salary.
For	employments	governed	by	rules	other	than	Swedish,	pension	
benefits	and	other	benefits	may	be	duly	adjusted	for	compliance	
with mandatory rules or established local practice, taking into 
account,	to	the	extent	possible,	the	overall	purpose	of	these	  
guidelines.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / DIRECTORS’ REPORT 
34

===== SIDA 35 =====

EMT	members	who	are	expatriates	(i.e.,	are	sent	on	an	international	
assignment	and	are	not	on	a	local	employment	contract)	may	
receive additional remuneration and other benefits determined in 
line with the company’s International Assignment Instruction which 
may	include	(but	are	not	limited	to)	relocation	cost,	cost	of	living	
allowance,	housing,	schooling,	home	travel	allowance	and	tax	assis -
tance.	Such	benefits	may	amount	to	no	more	than	160	per	cent	of	
the	annual	fixed	base	salary.
Clawback
The Board of Directors shall have the possibility, in accordance with 
applicable law or contractual provisions, to in whole or in part 
reclaim variable remuneration paid on incorrect grounds.
Termination of employment
Upon	termination	of	an	employment,	the	notice	period	may	not	
exceed	twelve	(12)	months.	Fixed	base	salary	during	the	notice	
period	and	severance	pay	may	together	not	exceed	an	amount	
	corresponding	to	the	individual’s	fixed	base	salary	for	two	(2)	years,	
subject	to	applicable	law.
When	termination	is	made	by	the	EMT	member,	the	notice	period	
may	not	exceed	twelve	(12)	months,	without	any	right	to	severance	
pay.
Additionally,	remuneration	may	be	paid	for	non-compete	under -
takings.	Such	remuneration	shall	compensate	for	loss	of	income	and	
shall	only	be	paid	in	so	far	as	the	previously	employed	executive	is	
not entitled to severance pay. The remuneration may amount to not 
more	than	60	per	cent	of	the	monthly	fixed	base	salary	at	the	time	
of termination of employment and be paid during the time the 
non-compete	undertaking	applies,	however	not	for	more	than	
twelve	(12)	months	following	the	termination	of	employment.
Salary and employment conditions for  employees
In the preparation of the Board of Directors’ proposal for these 
remuneration guidelines, salary and employment conditions for 
employees of the company have been taken into account by includ -
ing information on the employees’ total income, the components of 
the remuneration and increase and growth rate over time, in the 
People	Committee’s	and	the	Board	of	Directors’	basis	of	decision	
when evaluating whether the guidelines and the limitations set out 
herein are reasonable.
Share ownership guidelines for  members of the EMT
Since	the	Board	of	Directors	believes	that	long-term	share	owner -
ship	is	an	important	way	to	create	alignment	between	the	EMT	
members	and	Volvo	Cars’	shareholders,	it	has	implemented	the	
	following	policy	of	share	ownership	for	members	of	the	EMT.	
As	per	the	policy,	the	Board	of	Directors	expects	the	CEO	and	other	
members	of	the	EMT	to	accumulate	personal	holdings	in	shares	with	
a market value corresponding to the value of 100 per cent of the 
EMT	member’s	gross	annual	fixed	base	salary.	When	calculating	the	
value of the personal holdings, the market value of the shares at 
each	investment	instance	shall	be	used.	It	is	expected	that	the	
 personal holding of shares be established within five years from the 
listing of the company and, for new hires, within five years from 
commencement	of	employment	with	the	group	as	CEO	or	as	a	
	member	of	the	EMT.	The	CEO	and	other	members	of	the	EMT	shall	
retain	shares	allotted	(net	after	taxes	payable)	under	future	incen -
tive	programmes	to	achieve	the	expected	share	ownership.	Further,	
upon reaching the recommended share ownership level, it is 
expected	that	the	CEO	and	the	other	members	of	the	EMT	maintain	
shares	of	such	value	for	the	duration	of	their	appointment	as	CEO	or	
the	other	member	of	the	EMT.
Remuneration guidelines governance
The	Board	of	Directors	has	established	the	People	Committee,	
whose tasks include preparing the Board of Directors’ decision to 
propose	guidelines	for	EMT	remuneration.	The	Board	of	Directors	
shall prepare a proposal for new guidelines at least every fourth 
year and submit it to the general meeting. The guidelines shall be in 
force until new guidelines are adopted by the general meeting. 
The	People	Committee	shall	also	monitor	and	evaluate	variable	  
pay	programmes,	the	application	of	the	guidelines	for	executive	
remuneration as well as the current remuneration structures and 
compensation levels in the company. 
The	members	of	the	People	Committee	are	independent	of	the	
company	and	its	executive	management.	Neither	the	CEO	nor	any	
other	EMT	member	participate	in	the	Board	of	Directors’	decision 	-
making	process	on	any	resolutions	regarding	remuneration-related	
matters as far as that could potentially affect their own remunera -
tion.
Deviation from the guidelines
The Board of Directors may temporarily resolve to deviate from the 
guidelines, in whole or in part, if in a specific case there is special 
cause for the deviation and a deviation is necessary to serve the 
company’s	long-term	interests,	including	its	sustainability,	or	to	
ensure	the	company’s	financial	viability.	The	People	Committee’s	
tasks shall include preparation of any resolutions to deviate from 
the guidelines.
The Board of Directors’ proposal to guidelines for 
 executive remuneration 2026 
The	Board	of	Directors	of	Volvo	Car	AB	(“Volvo	Cars”)	proposes	no	
changes	to	the	guidelines	for	remuneration	to	the	Executive	Man -
agement	Team	(including	the	CEO	and	any	deputy	CEO)	(“EMT”)	for	
the 2026 Annual General Meeting. The current guidelines, adopted 
by the Annual General Meeting held in April 2025, remain applicable 
for 2026.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  
RISK 36
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / DIRECTORS’ REPORT 
35

===== SIDA 36 =====

Risk
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
36 VOLVO CAR GROUP

===== SIDA 37 =====

Risk	is	an	inherent	aspect	of	business,	encompassing	both	potential	
threats	and	opportunities.	Effective	risk	management	not	only	miti -
gates adverse impacts but also enables the identification of oppor -
tunities and the creation of value. At Volvo	Cars,	the	risk	manage-
ment process is designed to support the organisation in identifying, 
managing, and monitoring critical risks that may affect the achieve -
ment	of	our	financial	targets	and	strategic	objectives.	The	ability	to	
recognise and adapt to evolving threats is a cornerstone of our risk 
management approach.
Enterprise	Risk	Management	(ERM)	is	integrated	into	the	business	
with	the	objective	of	enhancing	decision-making,	proactively	safe -
guarding	the	execution	of	strategies	and	plans,	and	protecting	cor -
porate assets. Volvo	Cars	is	committed	to	fostering	a	systematic	
approach to risk management, underpinned by organisational cul -
ture, business insights and accountability. This approach is aligned 
with industry best practices.
Risk Landscape
The top risks identified for 2025 are closely related to Volvo	Cars’	
strategic	priorities—	Electrification,	Regionalisation	and	Profitability.	
The risks related to advanced technological developments for 
future car models have been reduced. However, ongoing geopolitical 
tensions, technological decoupling and trends towards deglobalisa -
tion continue to shape the risk landscape.
A key strength of Volvo	Cars	lies	in	our	ability	to	swiftly	identify	and	
respond to emerging threats, reinforcing our organisational resilience.
In 2025, the automotive industry faced considerable challenges in 
major	markets	such	as	China,	Europe,	and	the	United	States	mainly	
driven by uncertainties in the economic development and geopolitical 
instability. The geopolitical situation with rising tariffs and trade barri-
ers	between	the	US,	China	and	Europe	are	also	affecting	the	supply	
chain	with	financial	distressed	suppliers	as	one	of	the	examples.
While	electric	vehicle	(EV)	growth	remains	strong	in	China,	
demand	in	Europe	and	the	U.S.	is	more	moderate,	hindered	by	pricing	
pressures, fierce competition, reduced subsidies and infrastructure 
limitations.
In response, Volvo	Cars	is	recalibrating	its	electrification	timeline	
and	optimising	the	balance	between	battery	electric	vehicles	(BEVs)	
and	plug-in	hybrid	electric	vehicles	(PHEVs).	The	company	is	prior -
itising cost reduction and cash preservation to sustain profitability 
and growth.
Governance
The Board of Directors holds ultimate responsibility for ensuring that 
all	risks	(including	those	related	to	climate	and	nature)	are	ade -
quately	managed.	Certain	responsibilities	are	delegated	to	the	Audit	
Committee	and	the	People	Committee.	Operational	risk	manage -
ment	is	overseen	by	the	Chief	Executive	Officer	and	the	Executive	
Management	Team	(EMT),	with	the	Head	of	ERM	reporting	the	top	
risks	biannually	to	the	Executive	Management	Team	and	the	Board	of	
Directors.
Risk	input	is	collected	quarterly	from	across	the	organisation	via	
local	risk	managers,	resulting	in	a	comprehensive	risk	overview.	Each	
identified risk is assigned a risk owner responsible for managing the 
risk in accordance with Volvo	Cars’	Risk	Management	principles.
Prior	to	formal	reporting,	a	dedicated	ERM	Core	Team,	consisting	
of senior managers across the company, conducts a thorough review 
and	prioritisation	of	risks	from	a	cross-functional	perspective.	
 Additionally, the Internal Audit function serves as the third line of 
defense, providing independent assurance on the effectiveness of 
risk management practices. 
Enterprise Risk Management
CONTEXT
Consists of the policies, strategies, 
plans, targets, purposes and other 
steering principles tha t are  
pointing out the direction of the 
business.
BUSINESS PROCESSES
The	analysis,		decision-making	and	
	execution	necessary	to	move	in	
the right direction.
RISKS
External	and	internal	uncertain -
ties, threats and weaknesses that 
can make us deviate from the 
intended direction.
RISKS
CONTEXT
BUSINESS  
PROCESSES
RISK MANAGEMENT (RM)
Is the combined countermeasures 
taken to manage risks. Integrated 
RM	means	that	it	is	primarily	
driven by the business where the 
RM	roles	support	with	tools	and	
 competence.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 
ENTERPRISE	RISK	MANAGEMENT	
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / RISK
37

===== SIDA 38 =====

For	sustainability-related	risks	and	opportunities,	 Volvo	Cars	
adheres	to	the	requirements	in	the	European	Sustainability	Report -
ing	Standards	(ESRS)	and	conducts	yearly	materiality	assessments.	
More information can be found on page 145.
Risk Culture
Risk	management	at	Volvo	Cars	is	influenced	by	COSO	and	
ISO31000,	thus	understanding	that	all	functions	address	the	risks	
inherent in their daily responsibilities. This is further reinforced 
through training given to different target groups including risk 
 management principles, procedures, directives and guidelines.
Volvo	Cars	adopts	a	holistic	approach	to	risk	management,	begin -
ning	with	governance	and	taxonomy	that	promote	collaboration	and	
transparent	decision-making.	This	approach	is	closely	aligned	with	
corporate strategy and the corresponding risk and opportunities. 
The company embraces calculated risks in pursuit of our strategic 
objectives,	ensuring	a	balanced	approach	to	opportunity	and	risk.
Risk Management Practices
The	Risk	Management	function	at	 Volvo	Cars	is	designed	to	be	
dynamic, iterative, and responsive to change. A dynamic approach 
acknowledges the rapidly evolving and interconnected nature of the 
risk landscape. An iterative process ensures that the risk manage -
ment cycle remains continuously active and embedded within the 
business.	As	our	business	context	and	model	evolve,	so	too	must	our	
risk management practices.
Our	aim	is	to	ensure	that	risk	management	is	driven	by	business	
insights and accountability integrated into daily operations and 
aligned	with	best-in-class	methodologies.
Approach to Risk
At Volvo	Cars,	our	risk	management	approach	is	tailored	to	the	
nature of each risk category. This strategic alignment ensures that 
risks are addressed appropriately across the organisation. 
Risk Quantification
The	Risk	Management	function	is	responsible	for	developing	and	
maintaining a standardised risk quantification model. This model 
enables consistent evaluation of risks using impact and likelihood 
parameters	in	line	with	ISO	31000,	distinguishing	enterprise-level	
risks	from	functional	ones.	Risks	are	assessed	across	six	impact	
dimensions,	with	high-impact,	high-likelihood	risks	prioritised	by	the	
Executive	Management	Team.	The	ERM	Core	Team	consolidates	and	
reviews	reported	risks	before	presentation	to	the	Executive	Manage -
ment Team and Board of Directors.
Risk Drivers and Accelerators
Certain	macro-level	factors,	though	not	risks	in	themselves,	act	as	
accelerators, influencing the pace and emergence of risks. These 
drivers are integral to Volvo	Cars’	strategic	planning.	Intelligence	
gathering	on	trends	supports	proactive	decision-making	and	
enhances preparedness. 
Further	insights	on	industry	trends	and	strategic	responses	are	
available on pages 15–28.
 
APPROACH TO RISK
STRATEGIC
Averse
Cautious
Minimalist
Open
Hungry
Medium – High risk appetite because of high  
opportunities. High management attention.
Wide	range	due	to	wide	range	of	risk	areas.	Each	area	
to do cost benefit analysis and review insurable risks. 
Strong		process	control.
Wide range connected to relevant business  
decisions.	Strong	second	line	control.	Normally	
include s both downside and upside.
Zero	to	Low	appetite,	strong	first	and	second	line	  
control.	Company	policies	set	the	principles.
Note
OPERATIONAL
FINANCIAL
COMPLIANCE &  
FINANCIAL REPORTING
GEOPOLITICAL 
 DEVELOPMENTS
MACROECONOMIC 
DEVELOPMENT
THE COMPETITIVE 
 ENVIRONMENT AND 
TECHNOLOGICAL 
DEVELOPMENT
BARRIERS FOR  
EXECUTION
RISK DRIVERS AND ACCELERATORS
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 
ENTERPRISE	RISK	MANAGEMENT	
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / RISK
38

===== SIDA 39 =====

Key Risks for 2025
This section summarises the top prioritised risks for 2025, including descriptions, response 
actions, and outlooks indicating whether risks are increasing, stable, or decreasing.
STRATEGIC RISKS
Risk Description Response Outlook
 Challenges	with	market	
shift, intense competition 
and consumer behaviour 
in electrification transfor-
mation
As customers move towards electric vehicles, there is uncertainty 
on the pace of consumer acceptance, market by market. The move 
from	ICE	vehicles	to	BEV	is	dependent	on	factors	like	range,	charg -
ing	experience	and	price.	In	combination	with	geopolitical	develop -
ments,	removal	of	EV	incentive	programs,	uncertainties	in	regula -
tory requirements on emission reduction and impacts from instable 
macroeconomics there is a risk of adverse effects on our growth 
plans both with regards to volumes and margins. In addition to this, 
shifting regional market demands put pressure on us as competition 
continuously increases.
The launch of fully electric vehicles on new platforms with competitive range and 
improvements	of	the	existing	ICE/PHEV/BEV	cars	are	examples	of	our	commitment	
to	our	strategy	to	balance	commercial	demands.	There	is	also	a	regional	set-up	to	
adapt car models to local differences.
Continued	uncertainties	due	to	the	
instability in livelihood circumstances 
for our customers in combination with 
increased competition.
 Geopolitical	tensions	
and regionalisation resulting 
in	increased	taxes/duties/
tariffs	and	export	controls
Geopolitical regionalisation introduces risk of increased protection -
ism as countries and regions impose trade restrictions and trade 
taxes/duties/tariffs/	licensing/controls	on	technology,	which	leads	
to technology decoupling and increased costs.
With our global presence, we are naturally partly hedging the regional differences 
between	our	markets.	Our	ambition	to	build	where	we	sell	is	progressing	through	
our established global manufacturing footprint and increased local sourcing where 
relevant.
Regionalisation	is	accelerating	amid	
global deglobalisation, with no signs of 
near-term	stabilisation.
 Scarcity	of	secondary	
and	low-emission	resources	
&	technology
Global	demand	of	secondary	materials	and	low-emission	resources	
and technology is outpacing supply. The effect on availability and 
prices may affect Volvo	Cars’	ability	to	source	strategic	inputs	
needed to achieve its environmental goals, comply with evolving 
regulations, and maintain cost competitiveness in a dynamic market 
landscape.
Volvo	Cars	is	deepening	its	strategic	collaborations	with	suppliers	and	partners,	
investing	in	innovation	and	circularity,	and	developing	flexible	sourcing	strategies	
to enhance access to key resources and technologies that deliver financial value 
while	supporting	its	long-term	sustainability	ambitions.
While	the	external	environment	remains	
uncertain and resource constraints are 
expected	to	persist,	Volvo	Cars	is	com-
mitted to deepening its resilience and 
adaptability.
Risk Categories
Volvo	Cars	classifies	risks	into	four	primary	categories:
• Strategic	–	Risks	that	might	impact	reaching	
	strategic	objectives	
• Operational	–	Risks	that	might	interfere	with	
 operations 
• Compliance	–	Risks	that	might	impact	our	
 compliance with laws and regulations.
• Financial	–	Risks	that	might	impact	the	financial	
result	and/or	valuation
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 
ENTERPRISE	RISK	MANAGEMENT	
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / RISK
39

===== SIDA 40 =====

OPERATIONAL RISKS
Risk Description Response Outlook
 Cyber	risk The importance of cybersecurity is increasing in order to ensure  
a	resilient	business.	Cybercriminals	are	well	organised	and	pose	  
a multitude of threats to organisations, for instance ransomware, 
information theft, fraud and more.
Both the cybersecurity industry and regulators are addressing 
these	threats	with	a	mix	of	regulations,	standards,	services,	and	
tools to mitigate the threat and impact. 
Volvo	Cars	has	a	global	and	diverse	digital	footprint,	and	cyber -
security is essential in protecting all digital assets and critical 
business processes. 
Volvo	Cars	Cybersecurity	organisation	has	a	global	footprint	and	is	
equipped to manage cybersecurity risk company wide.
A governance model is in place with policies, standards, advisory, 
security practices implementation and incident services. An overar -
ching	Cybersecurity	program	addresses	improvement	areas	across	
company	functions	globally.	Reporting	is	provided	regularly	to	the	
Executive	Management	and	the	Board	of	Directors.
The cyber risk continues to increase in general and poses 
a risk to Volvo	Cars.
 Geopolitical	Disruption	
Risk	in	Battery	Supply	and	
Technology	Platforms
Volvo	Cars	is	exposed	to	heightened	risks	from	global	geopolitical	
tensions, particularly regarding advanced battery supply and 
	unified	technology	platforms.	Reliance	on	batteries	and	digital	
components	sourced	from	specific	regions,	especially	China,	
increases vulnerability to trade restrictions, regulatory changes, 
and supply chain disruptions. These factors, combined with the 
push	for	a	unified	tech	stack,	may	impact	operational	flexibility,	
innovation, and brand reputation.
The company is proactively strengthening quality controls, 
 diversifying supply chains, and adapting its business model to 
regional needs, while maintaining a clear focus on brand integrity, 
responsible business practices and customer trust. 
While	the	external	environment	remains	uncertain,	 Volvo 
Cars	is	committed	to	a	clear	strategy	and	continuous	
improvement to support sustainable growth and protect 
its reputation.
 Business	interruption Volvo	Cars	may	experience	disruption	to	manufacturing,	design	
and research and development capabilities for a variety of 
 reasons, such as natural disasters, environmental degradation, 
acts	of	war,	epidemics	and	other	external	events.
Business	interruption	is	to	a	certain	extent	an	insurable	risk	
although the impact may go beyond direct financial impact.  
Mitigation actions and investments are done to increase resilience.
Due	to	the	Russia-Ukraine	war,	instability	in	the	Middle	
East,	the	geopolitical	climate	and	increased	frequency/
impact natural disasters posed by accelerated environ -
mental degradation, the risk remains high.
COMPLIANCE RISKS
Risk Description Response Outlook
 Compliance	with	global
regulatory requirements
Ensuring	compliance	with	regulatory	requirements	is	critical	to	
avoid	fines,	legal	actions,	and	reputational	damage.	Several	of	the	
compliance risks faced by Volvo	Cars	are	driven	by	geopolitical	
developments.	Operating	in	markets	with	varying	regulatory	
standards	increases	complexity	and	cost	while	maintaining	
	compliance	across	all	jurisdictions.
Volvo	Cars	must	continuously	adapt	its	products,	services,	business	
processes and policies to remain compliant. This requires ongoing 
monitoring and a proactive approach to regulatory changes,  
which	can	be	resource	intensive.	Ensuring	that	our	teams	are	well-	
informed and trained on regulatory requirements across all areas  
of the business is essential to mitigate this risk.
The	complexity	of	the	global	regulatory	landscape	is	
increasing, driven by geopolitical developments.
 Non-compliant	
Cross-Border	Data	
 Transfers
Cross-border	data	transfers	expose	 Volvo	Cars	to	risks	arising	
from national and regional data protection restrictions and data 
localisation	requirements.	The	risks	pertain	to	non-compliant	
movement	of,	or	access	to,	personal	or	sensitive	data	across	juris -
dictions. The regulatory requirements continue to emerge and 
differ	between	countries	(e.g.	GDPR	(EU),	PIPL	(China),	Data	
Security	Program	(US),	and	DPDP	(India)).1)
Ongoing	monitoring	of	regulatory	developments	and	implementa -
tion of relevant compliance activities to prevent unauthorized 
cross-border	data	transfers	e.g.,	adoption	of	steering	documents,	
awareness trainings and adding controls in data and engineering 
frameworks.
The risk is increasing, driven by heightened geopolitical 
tensions and accelerating regulatory development. In 
addition to privacy regulations, many countries are tight -
ening controls over foreign access to domestic data for 
national security reasons.
1)  GDPR = General Data Protection Regulation, PIPL = Personal Information Protection Law, DPDP act = Digital Personal Data Protection act.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 
ENTERPRISE	RISK	MANAGEMENT	
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / RISK
40

===== SIDA 41 =====

FINANCIAL RISKS
Risk Description Response Outlook
 Macroeconomic	
development
Risk	for	negative	effect	on	business	due	to	deteriorating	macro -
economics, unstable geopolitical landscape, regional protection -
ism and potential recession with lower purchasing power among 
consumers. Also, risk that our supply chain will be affected in a 
potential market decline.
Dependent on how the macro environment develops, Volvo	Cars	 
can	adjust	the	timing	or	reduce	the	size	of	investments	to	protect	
the	cash	flow.	A	close	co-operation	with	our	supply	chain	also	
 supports the mitigation of these risks.
Global growth to be moderate but stable around 3.0  
per	cent	as	trade	policy	uncertainty	has	diminished.	Fiscal	
and	monetary	policy	to	provide	support	in	2026.	Recovery	
in	euro	area	but	with	structural	headwinds.	Fragmented	
US	economy	with	technology-driven	growth.	Chinese	
growth	expected	to	decline.
Additional Risk Management Areas
While	the	ERM	section	focuses	on	top	group-level	risks,	extensive	
risk	management	activities	occur	daily	across	the	organisation.	Key	
areas include:
• Financial	Risks	–	Managed	in	areas	such	as	hedge	accounting,	
	currency	exposure,	funding,	interest	rates,	commodity	pricing,	and	
credit. Detailed disclosures are provided in Note 19.
• Environmental	risk	–	Climate	and	nature-related	risks	are	identi -
fied using scenario analyses and materiality assessments, follow -
ing	ESRS	requirements,	and	integrated	into	strategy	and	risk	
	management	processes.	Further	details	can	be	found	in	the	
	Sustainability	Statement,	starting	on	page	130.
• Responsible	Business	Risks	–	Emphasising	social	responsibility	
and business conduct, this area includes initiatives to promote 
inclusion	and	ensure	ethical	practices.	Further	details	can	be	
found	in	the	social	and	governance	section	of	the	Sustainability	
Statement,	starting	on	page	179.
COMPLIANCE RISKS, continued.
Risk Description Response Outlook
 Potential	human	rights	
violations in our full value 
chain
Volvo	Cars	has	a	global	and	complex	value	chain	including	opera -
tions	in	and	sourcing	from	high-risk	countries.	This	means	that	it	
is important to safeguard fundamental human rights and minimise 
the risk that human rights violations occur at any instance of our 
total	value	chain.	Failure	to	do	so	could	lead	to	legal,	financial,	and	
reputational consequences, as well as supply chain disruptions.
A human rights compliance program, built on international guide -
lines, has been established to guide operations – e.g. requiring key 
due diligence activities across our value chain to identify and reme -
diate potential issues.
The	public’s	expectations	and	awareness	are	increasing.	
Current	and	new	national	and	regional	legislations	are	
increasing in scope and enforcement and put more 
responsibility on global companies’ due diligence efforts. 
Upcoming	EU	Corporate	Sustainability	Due	Diligence	
	legislation	will	help	standardise	expectations	according	to	
international guidelines and will require more detailed 
documentation, governance oversight, and remediation 
processes.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 
ENTERPRISE	RISK	MANAGEMENT	
CORPORATE GOVERNANCE  42
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / RISK
41

===== SIDA 42 =====

Corporate  
governance
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK  18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
42 VOLVO CAR GROUP

===== SIDA 43 =====

VOLVO CAR AB (PUBL.) BOARD OF DIRECTORS
Corporate governance within Volvo Car Group 
The purpose of Volvo	Car	Group’s	corporate	governance	is	to	create	
a strong foundation for active and responsible ownership, a proper 
distribution of responsibilities between the different company bod -
ies, as well as proper communication with all of the Group’s stake -
holders with the purpose of driving sustainable growth and good 
governance. 
The corporate governance principles adhered to by Volvo	Car	
Group	are	based	on	Swedish	law,	mainly	the	Swedish	Companies	Act	
(Sw.	Aktiebolagslagen	(2005:551)	and	the	Swedish	Annual	Accounts	
Act	(Sw.	Årsredovisningslagen	(1995:1554)),	the	Swedish	Code	of	
Corporate	Governance	(the	“Code”)	and	Nasdaq	Stockholm’s	rule -
book for issuers as well as other relevant laws and regulations. The 
Code	is	based	on	the	“comply	or	explain”	principle,	meaning	that	
companies are not obliged to at all times apply every rule in the 
Code,	but	are	allowed	the	freedom	to	choose	alternative	solutions	
which are better suited for their particular circumstances, provided 
they report every deviation, describe the alternative solution and 
explain	the	reasons	for	the	deviation.	
Volvo	Car	Group	applies	the	principles	of	sound	corporate	govern -
ance	and	responsible	business	practice,	and	the	Code	without	any	
deviations. 
The	Board	of	Directors	of	the	Company	(the	“Board”)	is	responsi -
ble for Volvo	Car	Group’s	organisation	and	the	management	of	its	
business worldwide and is obliged to follow directives provided by 
the General Meetings. The Board may appoint committees with 
 specific areas of responsibility and furthermore authorise such com -
mittees to decide on specific matters in accordance with regulations 
established by the Board. 
The Board has decided to delegate certain tasks related to 
	sustainability	reporting	to	the	Audit	Committee.	The	responsibility	
for sustainability matters in general, including but not limited to the 
strategic	aspects	thereof,	stays	with	the	Board.	As	of	20	September	
2023,	the	Board	decided	to	incorporate	a	new	temporary	China	
Committee	with	the	purpose	to	prepare,	and	review	matters	on	
behalf of the Board regarding the strategic direction and develop -
Corporate Governance Report
BOARD	OF	DIRECTORS	COMMITTEES
EMT/EMTe	FORA
SUPPORTING 	GOVERNANCE 	FORUM
SUPPORTING 	GOVERNANCE 		
	FUNCTIONS
COMPLIANCE COMMITTEESGLOBAL AUDIT OFFICE (GAO) 
(Reports to Audit Committee)
ENTERPRISE RISK 
MANAGEMENT
COMPLIANCE AND  
ETHICS OFFICE
DISCLOSURE COMMITTEEINTERNAL CONTROL
PRODUCT BOARD
SHAREHOLDERS THROUGH  
SHAREHOLDERS’ MEETINGS
PEOPLE COMMITTEE
DIGITAL BOARD
EXTERNAL AUDITOR
EXTENDED EXECUTIVE MANAGEMENT TEAM (EMTe)
AUDIT COMMITTEE
 CORPORATE BOARD
NOMINATION COMMITTEE
CEO AND EXECUTIVE MANAGEMENT TEAM (EMT)
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
43

===== SIDA 44 =====

ment of Volvo	Cars’	business	in	China.	In	September	2025,	the	Board	
decided	to	discontinue	the	China	Committee	since	the	Board	con -
cluded that it has fulfilled its purpose due to the new regionalisation 
strategy	and	the	new	governance	structure	for	China	(see	under	
“Regionalisation”	on	page	50.		Following	this	decision,	the	Board’s	
committees	consist	of	the	Audit	Committee	and	the	People	  
Committee.	
The	Chairperson	of	the	Board	directs	the	work	of	the	Board	and	
monitors	the	Board’s	fulfilment	of	its	obligations.	Until	June	2025,	  
a	Vice	Chairperson	was	also	appointed	to	support	the	Chairperson	as	
appropriate.	The	existing	Vice	Chairperson	stepped	down	from	her	
position	in	June	2025	whereafter	no	new	Vice	Chairperson	has	been	
appointed. The Board has adopted and regularly updates its rules of 
procedures, which outline the principles on governance of the Board 
and its committees. 
The	President	of	Volvo	Car	Group,	who	also	serves	as	the	Chief	
Executive	Officer	(CEO),	is	appointed	by	the	Board	to	manage	the	
Group’s	daily	operations	and	lead	the	Executive	Management	Team	
(EMT)	under	the	Board’s	supervision.	A	broader	Extended	Executive	
Management	Team	(EMTe)	has	also	been	established,	consisting	of	
EMT	and	other	key	roles.	
Shareholders and General Meetings 
Shareholders	exercise	their	influence	at	the	General	Meetings,	the	
Company’s	highest	decision-making	body.	The	Annual	General	
Meeting	is	held	within	six	months	after	the	end	of	the	financial	year.	
Decisions	made	by	shareholders’	at	the	General	Meetings	include	(i)	
adoption	of	instructions	for	the	Nomination	Committee	which	nomi -
nates	members	to	the	Company’s	Board	of	Directors,	(ii)	determina -
tion of the number of Board members, composition of the Board 
(including	the	Chairperson	of	the	Board)	and	remuneration	of	Board	
members,	based	on	recommendations	by	the	Nomination	Commit -
tee,	(iii)	election	of	external	auditors,	(iv)	determination	of	the	distri -
bution	of	dividends,	(v)	confirmation	of	income	statements	and	bal -
ance	sheets	and	the	disposition	of	the	Company’s	profit	or	loss,	(vi)	
discharge	from	liability	of	the	Board	of	Directors	and	CEO;	and	(vii)	
adoption	of	guidelines	for	remuneration	to	the	CEO	and	other	mem -
bers	of	the	EMT.	In	addition,	the	shareholders	of	the	Company	can	
resolve on other significant matters at the General Meeting, such as 
amendments to the Articles of Association. 
In	addition	to	the	Annual	General	Meeting,	Extraordinary	General	
Meetings can be convened when required. Notice of the Annual 
	General	Meeting,	as	well	as	an	Extraordinary	General	Meeting	at	
which the matter of amendment to the Articles of Association is to 
be	addressed,	shall	be	issued	not	earlier	than	six	weeks	and	not	later	
than four weeks prior to the General Meeting. Notices of other 
Extraordinary	General	Meetings	shall	be	issued	not	earlier	than	six	
weeks	and	not	later	than	three	weeks	prior	to	the	Extraordinary	
 General Meeting. Notice of General Meetings shall be published in 
the	Swedish	Official	Gazette	(Sw.	Post-	och	Inrikes	Tidningar)	and	  
on	the	Company’s	website.	Simultaneously,	an	announcement	with	
information that the notice has been issued shall be published in 
Dagens Industri. 
Right to attend General Meetings 
All	shareholders	who	are	directly	recorded	in	the	Company’s	share	
register	maintained	by	Euroclear	Sweden	six	banking	days	prior	to	
the	General	Meeting	and	who	have	notified	the	Company	of	their	
intention to participate in the General Meeting no later than the date 
indicated in the notice of the General Meeting, are entitled to attend 
the General Meeting and vote for the number of shares they hold. 
In	addition	to	notifying	the	Company,	shareholders	whose	shares	
are nominee registered through a bank or other nominee must 
request that their shares are temporarily registered in their own 
names	in	the	register	of	shareholders	maintained	by	Euroclear	  
Sweden,	in	order	to	be	entitled	to	participate	in	the	General	Meeting.	
Shareholders	should	inform	their	nominees	well	in	advance	of	the	
record	date.	Voting	registrations	made	by	nominees	not	later	than	
four banking days prior to the General Meeting will be taken into 
account. 
Shareholders	may	attend	the	Company’s	General	Meetings	in	
	person	or	by	proxy	and	may	be	accompanied	by	a	maximum	of	two	
assistants. It will normally be possible for shareholders to register  
for the General Meeting in several different ways, as indicated in the 
notice of the meeting. 
Shareholder initiatives 
Any	shareholder	of	the	Company	who	wishes	to	have	a	matter	
addressed at a General Meeting must submit a written request to  
the Board of Directors. The matter will be addressed at a General 
Meeting	if	the	request	has	been	received	by	the	Company	no	later	
than seven weeks prior to the General Meeting, or after such date,  
if it still is in due time for the matter to be included in the notice of 
the  General Meeting. 
Number of shareholders and ownership structure 
The total number of shares in Volvo	Car	AB	(publ.)	amounts	to	
2,979,524,179 shares of series B which are listed on the Nasdaq 
Stockholm	Stock	Exchange.	Per	16	February	2026,	 Volvo	Cars	larg-
est	shareholder	is	Geely	Sweden	Holdings	AB	holding	approximately	
78.65	per	cent	of	the	total	number	of	shares	and	votes	in	the	Com -
pany.	In	addition,	per	the	same	date,	Geely	International	Hong	Kong	
Limited	holds	approximately	0.22	per	cent	of	the	total	number	of	
shares	and	votes	in	the	Company.	The	remaining	21.13	per	cent	of	the	
shares and votes are held by Nordic and international investors and 
approximately	153,000	other	investors.	For	further	information	on	
the ownership structure, please refer to page 220. 
Volvo	Cars	held	14,894,838	own	shares	as	per	31	December	2025.	
Nomination Committee 
Under	the	Code,	a	company	listed	on	Nasdaq	Stockholm	shall	have	a	
Nomination	Committee,	the	purpose	of	which	is	to	make	proposals	to	
the	General	Meeting	in	respect	of	the	Chairperson	of	General	Meet -
ings,	number	of	Board	members,	elections	of	Board	members,	Chair -
person of the Board and auditor, remuneration of each Board mem -
ber	(divided	between	the	Chairperson	of	the	Board	and	other	Board	
members,	and	remuneration	for	committee	work),	remuneration	to	
the	auditor,	and	to	the	extent	deemed	necessary,	proposals	for	
amendments	to	the	instruction	for	the	Nomination	Committee.	
At	the	Annual	General	Meeting	held	on	17	October	2021,	the	cur -
rent	instruction	for	the	Nomination	Committee	was	adopted	to	apply	
until further notice. 
The	Nomination	Committee	prior	to	the	Annual	General	Meeting	
2026 consists of representatives of the three largest shareholders in 
terms of voting rights, as of 29 August 2025, and as announced on 
10	September	2025.	Members	of	the	Nomination	Committee	are:	
• Lone	Fønss	Schrøder,	appointed	by	Geely	Sweden	Holdings	AB,	
Chairperson	of	the	Nomination	Committee	
• Per	Ansgar,	appointed	by	Geely	Sweden	Holdings	AB	
• Eric	Li	(Li	Shufu),	Chairperson	of	the	Board	of	 Volvo	Car	AB	(publ.)	
• Anders	Oscarsson,	appointed	by	AMF	
• Emilie	Westholm,	appointed	by	Folksam	
The	Nomination	Committee	applies	a	framework	for	nomination	of	
members to the Board, which stipulates that the composition of the 
Board shall be diverse in terms of gender, nationality, professional 
background and key competences e.g. sustainability, relevant trans -
formation areas and new technology. This is to ensure that the Board 
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
44

===== SIDA 45 =====

has	the	appropriate	balance	of	expert	knowledge,	which	matches	the	
scale	and	complexity	of	Volvo	Cars,	supports	sustainable	develop -
ment and meets the independency requirements of Volvo	Cars.	Volvo 
Cars’	aim	is	to	have	a	balanced	composition	in	terms	of	gender	and	it	
is the ambition that each gender shall have a share of at least some 
40 per cent of the Board members elected by the shareholders’ 
meeting. This ambition was achieved in the Annual General Meetings 
2023, 2024 and 2025, whereafter the two latter years 44 per cent of 
the	Board	members	elected	by	the	shareholders	were	women.	Fol -
lowing	Lone	Fønss	Schrøder’s	decision	to	step	down	from	the	Board	
in June 2025, 37.5 per cent of the Board members elected by the 
shareholders	were	women.	Following	the	Extraordinary	General	
Meeting held on 8 December 2025, 40 per cent of the Board 
	members	elected	by	the	shareholders	are	women.	The	Unions	repre -
sented in the Board shall be encouraged to apply the corresponding 
ambition when appointing their representatives. 
Board of Directors 
The	Board	of	Directors,	which	is	the	highest	decision-making	body	
after the General Meeting, bears ultimate responsibility for Volvo	Car	
Group’s organisation, management and control of Volvo	Car	Group’s	
financial conditions. The Board of Directors shall further ensure that 
the	Company	applies	the	Code	and	complies	with	applicable	laws	
and	regulations,	Nasdaq	Stockholm’s	rulebook	for	issuers,	the	listing	
rules	of	the	Luxembourg	Stock	Exchange’s	Euro	MTF	market,	the	
Company’s	Articles	of	Association	and	the	rules	of	procedures	for	
the Board. 
Composition 
At	all	times,	the	Board	shall	consist	of	a	minimum	of	three	and	a	max -
imum of twelve members and in addition thereto the number of 
employee	representatives	as	required	under	Swedish	law.	No	mem -
ber	of	the	EMT	other	than	the	CEO	shall	be	a	member	of	the	Board.	
Each	new	Board	member	is	provided	with	an	introduction	programme	
to learn about Volvo	Car	Group	and	its	regulatory	requirements.	It	is	
furthermore the Board’s intention, during normal conditions, to visit 
a Volvo	Car	Group	site	other	than	the	headquarters	at	least	once	a	
year.
In	accordance	with	the	Code,	the	rules	of	procedures	for	the	Board	
stipulate	that	the	majority	of	the	Board	members	elected	by	the	
General	Meeting	shall	be	independent	of	the	Company	and	the	EMT	
and at least two of these independent members shall also be inde -
pendent	of	major	shareholders.	In	order	to	determine	whether	a	
member	of	the	Board	is	independent	in	relation	to	the	Company	and	
the	EMT,	an	overall	assessment	must	be	made	of	all	circumstances	
which might give reason to question the independence of the Board 
member, e.g. the Board member’s current or previous employment, 
other	board	memberships	or	other	relationships.	Furthermore,	in	
order	to	determine	the	independence	in	relation	to	major	sharehold -
ers, consideration must be given to the scope of the Board member’s 
direct	or	indirect	relationship	to	the	Company’s	major	shareholders.	
Pursuant	to	the	Code,	“major	shareholder”	means	a	shareholder	who,	
directly or indirectly, controls 10 per cent or more of the shares or 
voting	rights	in	the	Company.	The	Nomination	Committee’s	assess -
ment of the independence of the Board members in relation to the 
Company,	the	EMT	and	major	shareholders	is	presented	below.	
	Daniel	Li	(Li	Donghui),	Anna	Mossberg,	Jonas	Samuelson,	Lila	
	Tretikov,	Diarmuid	O’Connell,	Ruby	Lu	(Rong	Lu),	Pieter	Nota	and	
Caroline	Grégoire	Sainte	Marie	are	deemed	independent	in	relation	
to	the	Company	and	the	EMT,	and,	among	these	members,	Anna	
Mossberg,	Jonas	Samuelson,	Lila	Tretikov,	Diarmuid	O’Connell,	Ruby	
Lu	(Rong	Lu),	Pieter	Nota	and	Caroline	Grégoire	Sainte	Marie	are	also	
deemed	independent	in	relation	to	major	shareholders.	The	Company 	
thereby	satisfies	the	Code’s	independence	requirement.	
Name of the Board members 
Independent of  
the company/senior 
management
Independent of  
the company’s  
major shareholders
Board meeting 
attendance
Committee  
meeting  
attendance
Remuneration,  
Board and  
Committees 1), SEK
Members elected by the Shareholders’ Meeting
Eric Li (Li Shufu) (Chairperson of the Board) N N 12/15 N/A N/A
Lone Fønss Schrøder (Vice Chairperson of the 
Board) 2) Y   N3) 9/9 6/6 3,310,000
Jim Rowan4) N Y 4/5 2/2 N/A
Håkan Samuelsson 5) N Y 10/10 1/1 N/A
Daniel Li (Li Donghui) Y N 14/15 10/13 N/A
Jonas Samuelson Y Y 15/15 10/10 1,855,0006)
Diarmuid O’Connell Y Y 15/15 6/7 1,345,000
Lila Tretikov Y Y 15/15 9/10 1,420,000
Anna Mossberg Y Y 13/15 N/A 1,200,000
Ruby Lu (Rong Lu) Y Y 12/15 2/3 1,420,0007)
Pieter Nota8) Y Y 1/1 N/A 1,200,000 
Caroline Grégoire Sainte Marie 8) Y Y 1/1 N/A 1,420,0009)
 
1)  Annual average remuneration of the Board and Committees as adopted by the Annual General Meeting in April 2025. 
2)  Lone Fønss Schrøder left the Board on 26 June 2025. Remuneration includes annual average remuneration as vice chairperson of the Board and chair -
person of the Audit Committee.
3)  Since 2019, Lone Fønss Schrøder was a director in the board of Geely Sweden Holdings AB, the main owner of Volvo Cars. 
4)  Jim Rowan left the Board on 31 March 2025. 
5)  Håkan Samuelsson joined the Board at the Annual General Meeting on 3 April 2025.
6)  Jonas Samuelson was appointed as chairperson of the Audit Committee on 16 July 2025, remuneration therefore includes annual average remuneration 
as chairperson of the Audit Committee. 
7)  Ruby Lu was a member of the China Committee until it was dissolved in September 2025, remuneration therefore includes annual average remuneration 
for membership in the China Committee. 
8)  Appointed at the Extraordinary General Meeting held on 8 December 2025.
9)  Caroline Grégoire Sainte Marie was appointed as member of the Audit Committee on 9 December 2025, remuneration therefore includes annual average 
remuneration for membership in the Audit Committee. 
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
45

===== SIDA 46 =====

Conflicts of interest 
Board	members	shall	inform	the	Chairperson	and/or	the	Vice	Chair -
person	(if	appointed)	immediately	if	they	find	themselves	in	a	con -
flict-of-interest	situation.	A	Board	member	with	a	conflict	of	interest	
in relation to any matter to be dealt with by the Board may not par -
ticipate	in	the	discussions	(unless	there	are	specific	circumstances)	
or	decisions	regarding	such	matter.	As	an	example,	Eric	Li	(Li	Shufu)	
and	Daniel	Li	(Li	Donghui),	are	not	involved	in	any	decision	regarding	
Geely	Holding	Group	entities	and	Lone	Fønss	Schrøder	was	not	
involved in any such decisions during her time as Board member. In 
addition, as an additional governance measure in relation to conflicts 
of interest, all related party transactions are handled by a specific 
department within Volvo	Car	Group,	called	Collaborations.	
Matters for the Board 
The Board is responsible for the organisation of Volvo	Car	Group	and	
the management of its business worldwide. The Board continuously 
monitors Volvo	Car	Group’s	performance,	evaluates	 Volvo	Car	
Group’s strategic direction and business plan as well as other 
aspects	such	as	adherence	to	its	Code	of	Conduct.	Certain	matters	
are	delegated	to	the	Board’s	Committees	or	the	CEO	as	set	out	in	the	
rules of procedures for the Board. 
Sustainability	is	a	deeply	integrated	part	of	 Volvo	Car	Group’s	
strategy and the Board monitors Volvo	Car	Group’s	efforts	in	reach-
ing the ambitions set, and sustainability related risks and opportuni -
ties.	Further	information	regarding	 Volvo	Cars’	governance	of	
	sustainability	related	matters	is	described	in	the	Sustainability	
Statement	on	page	140.	
To ensure that the Board has good visibility of the Group’s opera -
tions,	the	President	and	CEO	of	the	Volvo	Car	Group	submits	a	report	
on the business, including reporting from the Group’s strategic affili -
ates,	where	appropriate,	at	all	Board	meetings.	The	Chief	Financial	
Officer	also	reports	on	the	financials	of	 Volvo	Car	Group,	including	
relevant matters relating to e.g. treasury and hedging. The Board is 
also provided with updates and reports on other relevant topics such 
as risk management, disclosure matters etc., as appropriate. In addi -
tion, the Board discusses specific strategic topics of relevance, and 
the	Board	Committees	report	on	their	work.	At	each	Board	meeting,	
a number of decision items are also presented for the Board’s  
consideration and decision in accordance with the Board’s rules of 
procedure. 
The work of the Board follows an annual cycle to allow the Board 
to address matters within the scope of its responsibility on a yearly 
basis. Matters that come up regularly include product and commer -
cial strategy and business opportunities within new technology and 
digitalisation as well as sustainability and compliance. 
Authorisation for the Board to resolve on new issues  
of shares 
At the Annual General Meeting held on 3 April 2025, the sharehold -
ers resolved to authorise the Board to, on one or several occasions, 
up	to	the	next	Annual	General	Meeting,	with	or	without	deviation	
from the shareholders’ preferential right, resolve on new issues of 
shares	of	series	B	and/or	subscription	warrants	and/or	convertible	
bonds. The total number of shares that may be issued by way of a 
new	share	issue,	exercise	of	subscription	warrants	or	conversion	of	
convertible bonds, by virtue of the authorisation shall be within the 
limits	of	the	articles	of	association	and	not	exceed	ten	per	cent	of	the	
total	number	of	shares	in	the	Company	at	the	time	of	the	Board’s	
resolution. The authorisation includes a right to resolve on new 
issues for cash consideration, by contribution in kind or payment by 
set-off.	The	issue	price	shall,	in	case	of	deviation	from	the	sharehold -
ers’ preferential right, be determined in accordance with market 
price. The Board shall be entitled to determine other terms of the 
issue. 
The purpose of the authorisation, and the reason for any deviation 
from the shareholders’ preferential right, is to increase the financial 
flexibility	of	the	Company	to	enable	the	Company	to	finance	the	
operations in a fast and efficient way, acquire companies, businesses 
or	parts	thereof	and/	or	to	enable	a	broadening	of	the	ownership	of	
the	Company.	
Authorisation for the Board to resolve on acquisition  
of own shares 
At the Annual General Meeting held on 3 April 2025, the sharehold -
ers resolved to authorise the Board to resolve on acquisition of own 
shares	of	series	B	on	Nasdaq	Stockholm	to	secure	 Volvo	Cars’	obli-
gations	to	deliver	shares	to	the	participants	in	the	Company’s	
employee	share	incentive	plans;	the	Employee	Share	Matching	Plan	
adopted	by	the	Annual	General	Meeting	during	2024	and	the	Perfor -
mance	Share	Plans	adopted	by	the	Annual	General	Meetings	during	
2023,	2024	and	2025	(the	“PSP”	and	“ESMP”	respectively	or	jointly	
the	“Plans”).	Acquisition	of	own	shares	of	series	B	may	only	be	
effected	on	Nasdaq	Stockholm.	A	maximum	of	53,441,495	shares	of	
series B in Volvo	Cars	may	be	acquired	to	secure	delivery	of	shares	to	
the	participants	under	the	Plans,	of	which	9,886,909	shares	relate	to	
PSP	2023,	12,539,648	shares	relate	to	PSP	2024,	16,578,427	relate	
to	ESMP	2024	and	14,436,511	relate	to	PSP	2025.	Acquisitions	of	
shares of series B in Volvo	Cars	on	Nasdaq	Stockholm	may	only	be	
made	at	a	price	within	the	price	range	(spread)	on	Nasdaq	Stockholm	
applicable from time to time, meaning the spread between the high -
est purchase price and the lowest selling price prevailing and dis -
seminated	by	Nasdaq	Stockholm	from	time	to	time.	The	authorisa -
tion may be utilised on one or several occasions, however, only until 
the Annual General Meeting 2026. 
On	19	May	2025,	the	Board	resolved	to	repurchase	own	shares	in	
accordance with the authorisation to secure the future delivery of 
shares	to	participants	in	the	PSP	adopted	by	the	Annual	General	
Meeting	in	2023,	2024	and	2024	and	the	ESMP	plan	adopted	by	the	
Annual	General	Meeting	in	2024.	Pursuant	to	the	repurchase	pro -
gramme, 12,500,000 shares of series B were repurchased during the 
period	between	20	May	and	19	June	2025,	for	a	total	amount	of	SEK	
218,866,471.	All	acquisitions	were	made	on	Nasdaq	Stockholm	by	
Skandinaviska	Enskilda	Banken	AB	(publ)	on	behalf	of	the	Company.	
Board meetings 
In accordance with the rules of procedures for the Board, the Board 
is	expected	to	meet	six	to	ten	times	per	year	at	venues	to	be	agreed	
by the Board. The Board has held 15 meetings during 2025, of which 
ten	were	ordinary	and	five	extraordinary.	The	Board	meets	the	exter -
nal	auditor	at	least	once	a	year	without	the	CEO	or	any	other	member	
of	the	EMT	present.	In	addition,	the	Board	occasionally	holds	
non-executive	meetings.	The	General	Counsel	and	Chief	Corporate	
Affairs	Officer	is	the	secretary	of	the	Board	and	also	attends	Board	
meetings	as	does	the	Chief	Financial	Officer.	
The table on page 45 shows the Board members’ attendance to 
the Board meetings in addition to their independence according to 
the	requirements	of	the	Code	in	relation	to	(i)	the	Company	and	(ii)	
the	major	shareholder,	and	the	remuneration	to	the	Board	members	
for	Board	and	Committee	work.	
Evaluation of the work of the Board 
The	Board,	through	an	external	provider,	conducts	an	annual	survey	
of its work performed during the year. The survey covers areas such 
as the climate at Board meetings, the allocation of time spent on 
 different topics, the work of the Board and its committees, the effi -
ciency of the work of the Board, their prerequisites to perform Board 
work,	Board	leadership	and	relations	with	the	EMT.	Based	on	the	
result of the survey the Board will be benchmarked against its peers. 
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
46

===== SIDA 47 =====

The Board is also evaluated on performance and composition and 
possible	areas	of	improvement	are	identified.	Relevant	parts	of	the	
survey	are	also	used	in	the	Nomination	Committee	process.	In	addi -
tion	to	the	annual	survey,	the	Nomination	Committee	also	conducts	
meetings with each individual Board member during the year to dis -
cuss	the	Board	work	as	part	of	the	Nomination	Committee	process.	
Board committees 
According	to	the	Swedish	Companies	Act	and	the	Code,	the	Board	  
of	Directors	shall	institute	an	Audit	Committee	and	a	Remuneration	
Committee.	The	members	of	the	Remuneration	Committee	are	to	be	
independent	of	the	Company	and	the	EMT.	A	majority	of	the	Audit	
Committee’s	members	are	to	be	independent	in	relation	to	the	
	Company	and	its	EMT	and	at	least	one	of	the	members	who	is	inde -
pendent	in	relation	to	the	Company	and	the	EMT	is	also	to	be	inde -
pendent	in	relation	to	the	Company’s	major	shareholders.	At	least	
one	member	of	the	Audit	Committee	must	also	have	accounting	or	
auditing proficiency. The Board has established two permanent 
	committees,	the	Audit	Committee	and	the	People	Committee	(which	
fulfils	the	tasks	of	the	Remuneration	Committee	pursuant	to	the	
Code).	In	addition	to	these,	the	Board	established	a	temporary	China	
Committee	during	2023.	In	September	2025,	the	Board	decided	to	
discontinue	the	China	Committee.	
The	major	tasks	of	these	committees	are	of	preparatory	and	
 advisory nature, but the Board of Directors may also delegate deci -
sion-making	powers	on	specific	issues	to	the	committees.	The	issues	
considered at committee meetings shall be recorded in minutes of 
the meetings and continuously reported to the Board. The commit -
tees are appointed at the statutory Board meeting following election 
of Board members. The Board has also determined that issues may 
be referred to ad hoc committees dealing with specific matters. 
Audit Committee 
The	Board	has	assigned	an	Audit	Committee	to	oversee	corporate	
governance, financial and sustainability reporting, the internal 
	control	system,	risk	management	and	compliance	with	external	and	
internal regulations. 
The	Audit	Committee	is	responsible	for	identifying	and	reporting	
relevant	issues	to	the	Board	within	the	Audit	Committee’s	areas	of	
responsibility.	The	Audit	Committees	tasks	are	to	monitor	the	integ -
rity of Volvo	Car	Group’s	financial	and	sustainability	reporting	sys -
tem,	internal	controls,	related-party	transactions,	operation	proce -
dure and the enterprise risk management framework, recommend to 
the	Board	the	appointment,	removal	and	remuneration	of	the	exter -
nal	auditors	(subject	to	approval	at	the	shareholders’	meeting)	in	
accordance	with	the	Swedish	Companies	Act,	monitor	the	independ -
ence	of	the	external	auditors	and	review	the	effectiveness	of	the	
Internal	Audit	and	the	Compliance	and	Ethics	Program.	The	external	
auditors	participate	in	parts	of	the	Audit	Committee	meetings.	The	
Audit	Committee	has	during	the	year	met	with	the	external	auditors,	
without management present, to discuss management matters and 
related topics. The Internal Audit function reports directly to the 
Audit	Committee	and	the	Compliance	and	Ethics	Office	has	direct	
access	to	the	Audit	Committee	for	escalation.	The	Audit	Committee	
has	held	ten	meetings	during	2025,	of	which	six	were	review	meet -
ings	of	quarterly	reports	or	annual	report	meetings.	Jonas	Samuel -
son	(chairperson),	Daniel	Li	(Li	Donghui)	and	Lila	Tretikov	are	the	
	current	members	of	the	Audit	Committee.	Lone	Fønss	Schrøder	was	
a	member	and	chairperson	of	the	Audit	Committee	until	she	left	  
the	Board	in	June	2025	.	The	Audit	Committee	complies	with	the	
Swedish	Companies	Act’s	and	the	Code’s	requirements	for	inde -
pendence as well as accounting and audit competence. 
People Committee
The	Board	has	assigned	to	the	People	Committee	to	prepare	the	
remuneration	guidelines	for	the	CEO	and	the	EMT	members.	Further -
more,	the	committee	supports	the	Chairperson	or	Vice	Chairperson	
of	the	Board	(when	appointed),	as	applicable,	with	the	approval	of	
remuneration	and	benefits	of	the	CEO	and	is	responsible	for	prepar -
ing the remuneration report to be presented at the Annual General 
Meeting	for	its	approval,	and	in	dialogue	with	the	CEO,	assist	with	or	
resolve on various other people and remuneration matters in relation 
to	the	EMT.	The	committee	is	also	responsible	for	approval	and	mon -
itoring	of	the	global	incentive	arrangements	for	the	EMT	and	other	
key employees and necessary coordination of such incentives and 
the Volvo	bonus	to	all	employees,	succession	planning	for	the	CEO	in	
dialogue	with	the	Chairperson	or	the	Vice	Chairperson	of	the	Board	
(when	appointed),	as	applicable,	as	well	as	other	EMT	positions.	The	
committee	also	approves	the	EMT	members’	engagements	outside	
Volvo	Car	Group.	The	People	Committee	has	held	seven	meetings,	
whereof	five	ordinary	meetings	and	two	extra	meetings	during	2025.	
Jonas	Samuelson	(Chairperson)	and	Diarmuid	O’Connell	are	the	
	current	members	of	the	People	Committee.	The	People	Committee	
complies	with	the	Code’s	requirements	for	independence.	
China Committee 
In	September	2023,	the	Board	decided	to	incorporate	a	new	tempo -
rary	China	Committee	which	was	to	be	evaluated	after	one	year.	In	
December 2024, the Board decided to prolong the term of the 
	committee	with	one	additional	year	and	in	September	2025	the	
Board	decided	to	discontinue	the	China	Committee.	The	China	Com -
mittee	has,	until	September	2025,	prepared	and	reviewed	matters	on	
behalf of the Board regarding the strategic direction and develop -
ment of Volvo	Cars’	business	in	China.	The	China	Committee	held	
three	ordinary	meetings	during	2025.	Ruby	Lu	and	Daniel	Li	(Li	Don -
ghui)	were	members	of	the	Committee	during	the	year	together	with	
Jim	Rowan	(Chairperson)	until	31	March	2025	and	Håkan	Samuels -
son	(Chairperson)	from	3	April	2025.		
Governance and compliance functions and forum 
In order to ensure a safe and stable governance of its work, the Board 
has three functions that directly reports, or provides regular updates 
to	the	Board	or	its	committees:	the	Global	Audit	Office,	the	Compli -
ance	and	Ethics	Office	and	Internal	Control.	The	Disclosure	Commit -
tee is a governance compliance forum that also reports to the Board. 
In	addition,	the	external	auditors	are	working	independently	from	
the	Board’s	functions.	In	addition	to	the	above-mentioned	govern -
ance	and	compliance	functions	and	forums,	the	EMT	has	also	estab -
lished	three	decision	foras,	consisting	of	members	of	the	EMT	and	
other	senior	company	representatives:	the	Corporate	Board,	the	
Product	Board	and	the	Digital	Board.	Information	on	the	purpose	of	
these	boards	are	set	out	under	“CEO	and	Executive	Management	
Team”	on	page	50	below.		
Global Audit Office 
Volvo	Car	Group	has	an	independent	Internal	Audit	function	referred	
to	as	the	Global	Audit	Office	with	the	assignment	to	determine	
whether Volvo	Car	Group’s	governance,	internal	control	and	risk	
management processes, as designed, operated and represented by 
management, are adequate and effective. The scope of the internal 
audit is determined by means of a risk assessment process and any 
additional	requirements	by	the	Board.	The	Audit	Committee	
approves the internal audit plan which includes risks associated with 
the	execution	of	the	corporate	strategy,	execution	of	transformation,	
sustainability, business operations and processes. Audit results and 
status of implemented corrective measures by management are 
reported	to	the	Audit	Committee	and	internal	audit	results	of 	
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
47

===== SIDA 48 =====

significance will also be reported to the Board. The Head of the 
Global	Audit	Office	reports	to	the	Audit	Committee.	
Disclosure Committee
Volvo	Car	Group	has	listed	shares	on	Nasdaq	Stockholm	and	listed	
bonds	on	Luxembourg	Stock	Exchange	and	is	therefore	required	to	
comply with the relevant disclosure obligations under the Market 
Abuse	Regulation	(MAR),	as	well	as	under	the	listing	rules	of	the	
	Luxembourg	Stock	Exchange’s	Euro	MTF	market	and	the	Nasdaq	
rulebook for issuers. In order to ensure compliance with the relevant 
requirements, Volvo	Car	Group	has	established	a	Disclosure	Com -
mittee and the Board of Directors has adopted a set of procedures 
for	the	Disclosure	Committee.	The	Board	and	the	Audit	Committee	
are kept updated on the discussions and decisions of the Disclosure 
Committee	by	means	of	summary	reports	and	access	to	the	minutes	
kept at the committee meetings. The members of the Disclosure 
Committee	are	the	General	Counsel	and	Chief	Corporate	Affairs	
Officer	(Chairperson),	the	Chief	Financial	Officer,	the	Head	of	Treas -
ury	and	Strategic	Finance	and	the	Head	of	Communications.	In	addi -
tion,	the	Head	of	Corporate	Governance	participates	in	the	meetings	
as	secretary	and	the	Head	of	Corporate	Governance	Office	may	par -
ticipate as deputy secretary. The Head of Accounting and Group 
Reporting	is	a	required	participant	in	financial	result	review	meet -
ings, and other senior company representatives attend the meetings 
on	an	agenda-driven	basis.	The	Disclosure	Committee	has	been	
established to implement required disclosure controls and proce -
dures, resolve whether or not information is to be categorised as 
inside information or not and consider whether there is reason to 
delay disclosure of inside information or whether disclosure as soon 
as possible is required as well as determine whether the require -
ments for selective disclosure are fulfilled. 
Compliance and Ethics 
Volvo	Cars	has	a	Compliance	&	Ethics	Office	to	support	 Volvo	Cars	in	
conducting its business responsibly, ethically and in accordance with 
all relevant laws and regulations and Volvo	Cars	Code	of	Conduct.	To	
define the overarching role, authority, independence and oversight of 
the	Compliance	&	Ethics	Office	and	to	support	the	Board	of	Direc -
tors’	responsibility	in	overseeing	the	Compliance	&	Ethics	Program,	
the	Board	of	Directors	has	implemented	a	Compliance	&	Ethics	
Charter	(the	“Charter”)	and,	to	support	 Volvo	Cars’	regionalisation	
efforts	(see	further	information	on	page	50	below),	a	supplementary	
China	Compliance	&	Ethics	Charter	(the	“China	Charter”	and	jointly,	
the	“Charters”).	
The	Compliance	&	Ethics	Office	is	led	by	the	Global	Head	of	
	Compliance	&	Ethics,	who	serves	as	the	Chief	Compliance	&	Ethics	
Officer	for	Volvo	Car	Group.	The	Global	Head	of	Compliance	&	Ethics	
reports	to	the	General	Counsel	and	Chief	Corporate	Affairs	Officer	
and, to ensure independence, also has direct access to, and regularly 
reports,	to	the	Audit	Committee.	The	Global	Head	of	Compliance	&	
Ethics	also	ensures	that	compliance	training	is	provided	to	the	Board	
of Directors.
The	Compliance	&	Ethics	Program	covers	the	designated	compli -
ance risk areas for Volvo	Cars,	which	currently	are	(i)	anti-corruption	
and	bribery	(incl.	conflicts	of	interest),	(ii)	trade	sanctions	and	export	
control,	(iii)	data	protection	(including	privacy	and	AI	compliance	
governance),	(iv)	human	rights,	and	(v)	competition	law.	Product	
compliance	matters	lie	outside	the	scope	of	the	Compliance	&	Ethics	
Office	and	are	the	responsibility	of	the	Chief	Strategy	and	Product	
Officer.
To	ensure	top-level	support	and	direction	for	the	Compliance	&	
Ethics	Program	and	promote	open	communication	between	the	
Compliance	&	Ethics	Office	and	the	members	of	the	EMT,	the	Board	
has	further,	through	the	Charter	established	a	Compliance	Commit -
tee.	The	Compliance	Committee	serves	as	the	primary	governance	
body for compliance and ethics matters at group level, supporting 
effective implementation, oversight, and continuous improvement of 
the	Compliance	&	Ethics	Program	globally.	It	is	chaired	by	the	Gen -
eral	Counsel	and	Chief	Corporate	Affairs	Officer	and	consists	of	the	
entire	EMT.	The	Global	Head	of	Compliance	&	Ethics	and	the	Head	of	
Global	Audit	Office	are	also	attendees.	In	addition,	other	individuals	
may be directed to provide information and attend committee meet -
ings as needed based on the nature of specific agenda items or 
emerging risks.
The	Compliance	Committee	is	provided	with	regular	updates	from	
the	Compliance	&	Ethics	Office,	while	detailed	reviews	and	decisions	
on	regular	compliance	cases	reported	by	the	Compliance	&	Ethics	
Office	are	delegated	to	the	General	Counsel	and	Chief	Corporate	
Affairs	Officer	and	the	Chief	People	Officer.	Furthermore,	the	Com -
pliance	Committee	reviews	compliance-related	matters	reported	by	
the	Internal	Audit	and	Internal	Control	functions,	respectively,	when	
appropriate.	The	Compliance	Committee	normally	meets	four	times	
per year and ad hoc meetings may be called for if and when required. 
In	addition,	in	the	regionalisation	set-up	process	(described	on	page	
50),	a	China	Compliance	Committee	has	been	established	to	serve	as	
a governance body supporting effective implementation, oversight, 
and	continuous	improvement	of	the	Compliance	&	Ethics	Program	in	
China.	The	China	Compliance	Committee	is	chaired	by	the	General	
Counsel	and	Chief	Corporate	Affairs	Officer	and	further	consists	of	
the	President	of	Greater	China,	the	Head	of	China	Compliance	& 	
Ethics	and	the	General	Counsel	for	Geely	Group.	It	may	also	appoint	
ad hoc members as needed based on the nature of  specific agenda 
items	or	emerging	risks,	e.g.	the	Global	Head	of	Compliance	&	Ethics,	
heads of management responsible for the  relevant item or risk and 
the	Head	of	Internal	Audit	(APAC).
Volvo	Car	Group’s	Code	of	Conduct	reflects	 Volvo	Car	Group’s	val-
ues and culture and how it drives results in an ethical and responsible 
way by placing the emphasis on Volvo	Car	Group’s	culture,	values	and	
commitments in addition to focusing on the requirements set out in 
Volvo	Car	Group’s	corporate	policies.	The	Compliance	&	Ethics	
Office	supports	the	business	operations	in	conducting	business	in	a	
responsible and ethical manner, by designing, overseeing and moni -
toring the development, implementation and maintenance of the 
Compliance	and	Ethics	Program.	The	program	consists	of	ten	pro -
gram elements designed on the basis of guidelines for “effective 
compliance	program”	and	“adequate	procedures”,	such	as	the	US	
Sentencing	Guidelines	and	the	UK	Bribery	Act	Guidance	(supporting	
the	Foreign	Corrupt	Practices	Act	and	the	UK	Bribery	Act	respec -
tively),	as	well	as	guidance	from	European	Anti-Trust	Offices.	In	addi -
tion	to	the	Compliance	&	Ethics	organisation	described	above,	the	
program elements include: tone from the top and culture; risk 
assessment;	a	Compliance	&	Ethics	framework	(Code	of	Conduct	and	
corporate	policies,	directives	and	guidelines);	training,	awareness	
and communication; due care; internal reporting and investigations; 
enforcing disciplinary actions and incentives; monitoring and audit; 
program	assessment	and	continuous	improvement.	The	Compliance	
&	Ethics	Office	provides	training	regarding	the	Code	of	Conduct	and	
the five main compliance and ethics risk areas as stated above, 
including on whistleblowing and how to raise concerns using the Tell 
Us	reporting	line.	More	information	about	the	performance	of	the	
Compliance	&	Ethics	Program,	and	the	risk	areas	it	covers,	is	availa -
ble on page 48. 
In	addition	to	the	areas	covered	by	the	Compliance	&	Ethics	
	Program,	and	though	Volvo	Car	Group	is	generally	not	subject	to	
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
48

===== SIDA 49 =====

anti-money	laundering	laws	and	regulations	for	financial	institutions,	
there are measures in place to combat money laundering and terror -
ist financing, overseen by Group Treasury
 
Internal control 
The Board takes the responsibility for ensuring an effective internal 
control	system	exists	within	the	Group;	this	is	in	line	with	the	require -
ments	of	the	Swedish	Companies	Act	and	Swedish	Corporate	
	Governance	Code.	
Volvo	Car	Group	has	an	internal	control	function	which	supports	
the	Board	and	the	EMT	in	execution	of	their	internal	control	respon -
sibilities. The purpose of the internal control function is to support in 
defining effective and efficient internal controls to adequately 
ensure	compliance	with	external	and	internal	requirements	(policies,	
directives	and	guidelines)	for	financial	reporting,	digital	environment,	
sustainability	reporting	(read	along	with	the	Sustainability	State -
ment,	starting	page	130)	and	other	relevant	reporting	to	the	Board.	
The	Internal	Control	function	regularly	reports	to	the	Audit	Commit -
tee on a periodic basis which includes topics including but not limited 
to internal control risks, scope, plan and status updates. 
Volvo	Car	Group	uses	the	principles	laid	out	by	the	Committee	of	
Sponsoring	Organizations	of	the	Treadway	Commission	(COSO)	
framework	to	set	its	own	Internal	Control	framework	which	is	
explained	further	into;	(a)	Control	Environment,	(b)	Risk	Assessment,	
(c)	Control	Activities,	(d)	Information	and	Communication	and	(e)	
Monitoring. 
(a) Control Environment 
The foundation of Volvo	Car	Group’s	control	environment	originates	
from the Volvo	Car	Group’s	strategic	direction	(as	further	elaborated	
on	page	21)	which	creates	the	appropriate	culture	within	the	 Volvo 
Car	Group	and	provides	a	clear	tone	from	the	top.	Our	values,	which	
derive	from	our	Code	of	Conduct,	provide	the	guiding	principles	to	
define our corporate policies, directives and guidelines. 
The foundation of internal controls is based upon our policies, 
directives and guidelines which also define our responsibility and 
authority structure. 
(b) Risk Assessment 
Volvo	Car	Group	has	a	dynamic	and	iterative	risk	assessment	process	
to	identify	and	assess	risks	which	affect	achievement	of	our	objec -
tives. 
Risk	assessment	starts	at	the	enterprise	risk	level	which	is	managed	
by	the	Enterprise	Risk	Management	(“ERM”)	function	and	elaborated	
further	in	the	Risk	section	of	the	Annual	Report,	on	pages	37–41.
Risk	assessment	over	the	Internal	Control	environment	is	per -
formed at least once every year using different sources, including but 
not limited to; continuous dialogues with management, assess the 
impact of enterprise risks, assessment of the annual group financial 
statements, assessing risks relating to controls over sustainability 
reporting, assess any impact on controls due to internal require -
ments	(policies	and	directives	defined	by	different	functions),	assess	
any	impact	on	controls	due	to	external	requirements	and	assess	
impact	of	any	control	issues	identified.	Summary	of	the	relevant	risks	
is	reported	to	Audit	Committee	at	least	once	every	year.	
(c) Control activities 
Control	activities	are	the	actions	established	which	help	to	address	
risks	and	implement	the	internal	and	external	requirements	to	ensure	
the	achievement	of	objectives.	Control	activities	help	to	ensure	that	
potential	risks	are	prevented	or	detected	and	corrected.	Control	
activities are defined throughout the organisation to manage risks, 
and these control activities are maintained in our internal control 
frameworks. While the controls are defined in the frameworks which 
are	maintained	by	the	Internal	Control	function,	the	control	owner -
ship for each control is spread across the organisation and the 
framework	points	at	the	job	role	within	the	organisation	who	is	the	
control	owner	for	each	control.	Further,	it	is	analysed	iteratively	for	
need to update any controls activities or define controls activities in 
new	areas	of	risks.	Internal	Control	frameworks	are	reviewed	at	least	
once every year. 
(d) Information and Communication 
Information is necessary to enable the personnel to carry out their 
responsibility	to	support	the	achievements	of	objectives	while	com -
munication helps to iteratively provide, share and obtain information. 
Volvo	Car	Group’s	policies,	directives	and	guidelines	are	updated	
and communicated on a regular basis by the responsible policy 
 owners and maintained in the central repository. The respective 
functions in the Volvo	Car	Group	takes	the	operating	responsibility	to	
ensure that these policies, directives and guidelines are included in 
their daily operations. 
Internal	Control	related	information	is	maintained	on	various	
	platforms,	including	the	directives,	internal	SharePoint	and	GRC	
(Governance,	Risk	and	Compliance)	tool.	Further,	there	are	various	
forms of communication to provide, share and obtain information 
around internal controls like; continuous communication channels 
with key stakeholders, learning and trainings provided, newsletters 
shared	and	the	internal	SharePoint	for	internal	controls.	
(e) Monitoring 
Regular	or	specific	evaluations	are	performed	to	ensure	risks	are	
being appropriately addressed by verifying that the organisation is 
performing the controls as defined in the control frameworks. These 
evaluations	can	be	in	the	form	of	self-assessments	or	independent	
reviews	or	a	combination	thereof,	performed	by	the	Internal	Control	
team. The method used for monitoring of controls is determined based 
on factors such as the assessed level of risk associated and suitability 
to	the	purpose	of	monitoring.	Results	from	monitoring	activities	are	
reported	at	least	once	every	year	to	the	Audit	Committee.	
Issue	process	is	defined	to	ensure	any	control	issues	/	risks	are	
recorded, analysed, actioned and resolved. These control issues or 
risks can be noted through multiple sources like monitoring proce -
dures	or	self-identified	risk	by	operations	or	risks	identified	by	inter -
nal	or	external	auditors.	
External auditors 
The	Company’s	auditors	are	appointed	by	the	Annual	General	Meet -
ing. At the Annual General Meeting held on 3 April 2025, Deloitte AB 
was	re-elected	until	the	next	Annual	General	Meeting	as	the	Compa -
ny’s	auditor.	Fredrik	Jonsson	is	the	auditor	in	charge.	
The	external	auditors	discuss	the	external	audit	plan,	audit	find -
ings	and	risk	management	with	the	Audit	Committee.	The	auditor	
reviews one interim report per year and presents the results of its 
work	to	Audit	Committee.	The	auditor	also	examines	the	Corporate	
Governance	Report	and	provide	a	limited	assurance	of	the	Sustaina -
bility	Report	and	the	Green	Financing	Report.	The	results	of	its	finan -
cial	year	audit	and	the	audit	of	the	Annual	Report	of	the	parent	com -
pany and the consolidated financial statements are presented to the 
Audit	Committee	and	the	Board	of	Directors	at	meetings	after	year	
end. An opinion regarding the compliance with the guidelines for 
executive	remuneration	is	made	in	conjunction	with	the	Annual	Gen -
eral Meeting. When Deloitte is asked to provide services other than 
the	external	audit,	this	is	done	in	accordance	with	general	independ -
ence rules. Deloitte provides an annual written assurance of its 
impartiality	and	independence	to	the	Audit	Committee	in	accord -
ance	with	the	Swedish	Companies	Act	and	ISA	260.	
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
49

===== SIDA 50 =====

CEO and the Executive Management Team 
The	division	of	work	between	the	Board	and	the	CEO	is	set	out	in	the	
rules	of	procedures	for	the	Board	and	follows	the	Swedish	Compa -
nies	Act.	The	CEO	is	responsible	for	 Volvo	Car	Group’s	everyday	
management and operations and for the preparation of reports and 
compiling information for the Board meetings and for presenting 
such material at the Board meetings. 
The	CEO	is	further	responsible	for	 Volvo	Car	Group’s	financial	
reporting and consequently must ensure that the Board receives 
adequate information for the Board to be able to evaluate the 
Group’s	financial	condition.	The	CEO	regularly	keeps	the	Board	
informed of the developments in Volvo	Car	Group’s	operations,	the	
development of sales, Volvo	Car	Group’s	results	and	financial	posi -
tion, important business events and all other events, circumstances 
or conditions which can be assumed to be of significance to Volvo 
Car	Group’s	shareholders.	
The	CEO	leads	the	work	of	the	EMT,	which	is	responsible	for	the	
overall business development and operations of Volvo	Car	Group.	In	
addition	to	the	CEO,	the	EMT	consists	of	the	Chief	Financial	Officer,	
the	General	Counsel	and	Chief	Corporate	Affairs	Officer,	the	Chief	
People	Officer,	the	Chief	Commercial	Officer,	the	Chief	Strategy	&	
Product	Officer,	the	Chief	Industrial	Operations	Officer,	the	Chief	
Engineering	&	Technology	Officer	and	the	Chief	Design	Officer.	The	
EMT’s	role	is	to	assist	the	CEO	in	the	operation	of	 Volvo	Car	Group’s	
business,	set	the	strategic	long-term	direction	in	dialogue	with	the	
Board and take corporate and strategic decisions as delegated by the 
Board. The strategic direction is supported by functional strategies 
that	guide	the	Company’s	priorities.	In	order	to	assist	the	EMT	in	car -
rying out decisions and actions related to certain topics to fulfil the 
Group’s	strategic	direction	as	further	elaborated	on	page	21,	the	CEO	
has	established	the	Extended	Executive	Management	Team	(EMTe)	
which	in	addition	to	the	EMT	includes	a	number	of	other	senior	
 management positions within Volvo	Car	Group.	The	EMTe	shall	have	
shorter	term	tactical	focus	and	support	EMT	to	drive	performance	
and	execution	based	on	direction	set	by	EMT.	
The	EMT	and	EMTe’s	work	includes	three	operational	fora;	the	Prod -
uct	Board,	the	Corporate	Board	and	the	Digital	Board,	covering	
cross-functional	topics	related	to	the	product	portfolio,	corporate	
matters	and	projects	and	the	digital	landscape,	respectively,	which	
supports	the	EMT	to	provide	guidance,	deliver	strategic	directions	
and	approve	decisions	within	its	respective	responsibilities.	The	EMT	
meets	on	a	weekly	basis	and	the	whole	EMTe	meets	bi-weekly.
Regionalisation
Volvo	Car	Group	has	during	2025,	with	the	support	from	the	Board,	
started a regionalisation strategy, to empower Volvo	Cars	regions	by	
providing	them	with	greater	operational	autonomy.	For	the	China	
region	specifically,	the	operations	are	run	through	the	existing	
 company Daqing Volvo	Car	Manufacturing	Co.,	Ltd.	(“Daqing	Joint	
Venture”),	being	a	50/50	joint	venture	between	 Volvo	Car	Group	and	
Zhejiang	Geely	Holding	Group	Ltd	and	consolidated	into	 Volvo	Car	
Group.	The	board	of	the	Daqing	Joint	Venture	has	been	strength -
ened	to	include	Håkan	Samuelsson	(as	director	and	chairperson),	
Ruby	(Rong)	Lu	and	Geert	Bruyneel	as	 Volvo	Car	Group	representa-
tives	and	Daniel	(Donghui)	Li	together	with	An	Conghui	as	Zhejiang	
Geely	Holding	Group	Ltd	representatives.	The	governance	of	the	
Daqing	Joint	Venture	is	built	to	apply	Volvo	Car	Group’s	Code	of	
Conduct	and	following	Volvo	Car	Group’s	policies	and	directives	and	
leveraging	on	Zhejiang	Geely	Holding	Group	Ltd’s	knowledge	of	the	
Chinese	market.
From	a	corporate	governance	perspective,	the	responsibility	for	
Volvo	Car	Group	remains	with	the	Board	for	all	consolidated	entities,	
including	the	Daqing	Joint	Venture.	Other	than	the	establishment	of	
the	additional	China	Compliance	Committee	in	order	to	strengthen	
the	Compliance	&	Ethics	Function	in	the	China	region,	 Volvo	Car	
Group’s regionalisation efforts do not affect the corporate govern -
ance structure set out in this report.
Gothenburg 4 March 2026
Volvo	Car	AB	(publ.)
Board of Directors
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE
50

===== SIDA 51 =====

ERIC LI (LI SHUFU) HÅKAN SAMUELSSON
CHAIRPERSON AND MEMBER OF THE BOARD
Born 1963.  
Chairperson	and	member	of	the	Board	since	2010.
 
 
Education:	Bachelor’s	Degree	in	Management	Engineering	from	the	Harbin	
University	of	Science	and	Technology,	China.	Master’s	Degree	in	Mechanical	
Engineering	from	the	Yanshan	University,	China.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Founder	of	Zhejiang	Geely	Holding	Group	Co.	Ltd,	Ecarx	
Holdings	Inc	and	PSD	Capital	Limited	(indirect	shareholder	in	Polestar).	
Chairman	of	the	Board	of	Zhejiang	Geely	Holding	Group	Co.	Ltd,	Geely	  
Technology	Group	Co.	Ltd,	Geely	Talents	Development	Group	Co.	Ltd,	PSD	
Capital	Limited	and	PSD	Investment	Limited,	and	smart	Automobile	Co.	Ltd.	
Member	of	the	Board	of	Geely	Group	Limited,	and	Geely	Sweden	Holdings	
AB and a number of other companies within his ownership. 
Professional experience: Former	CEO	of	Zhejiang	Geely	Holding	Group	Co.	
Ltd.	
Holdings in Volvo Car AB (publ.), own and related parties:  2,349,935,270  
B shares.1)	2)
Not independent in relation to the company and Executive Management 
Team nor the Company’s major shareholders.
BOARD MEMBER, PRESIDENT AND CEO
Born 1951. 
Member of the board since 2025  
 
 
Education:	Master	of	Science	in	Mechanical	Engineering	from	KTH	Royal	
Institute	of	Technology,	Sweden.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Board	member	in	ABB	E-Mobility,	Modular	Management	
Group	Stockholm	AB	and	Business	Sweden.
Professional experience: 	Former	CEO	of	MAN	AG.	Previous	experience	
from	executive	management	(EVP)	at	Scania	Group.	Board	member	of	 Volvo 
Car	AB	from	2010-2022	and	President	and	CEO	of	 Volvo	Car	AB	from	2012–
2022.	Previous	Chairman	of	Polestar	Automotive	Holding	UK	LLC.	Previous	
Board	member	of	Lynk	&	Co	Investment	Co.,	Ltd.,	Lynk	&	Co	Europe	AB,	AB	
Volvo,	China-Euro	Vehicle	Technology	Aktiebolag	and	Zenuity	AB.	Previous	
Board	member	of	Ideella	föreningen	Teknikarbetsgivarna	i	Sverige	and	
Ideella	föreningen	Teknikföretagen	i	Sverige.	Previous	senior	advisor	to	
Geely	Sweden	Holdings	AB.
Holdings in Volvo Car AB (publ.), own and related parties: 2,186,631 
shares and 2,500,000 call options. 1)	2)	3)
Håkan Samuelsson is as CEO not independent in relation to the company and 
the Executive Management Team but he is independent in relation to the 
company’s major shareholders.
1)		Information	on	holdings	in	shares	is	per	16	February	2026.
2)		For	information	on	transactions,	please	refer	to	the	website	of	the	Swedish	Financial	  
Supervisory	Authority.	 PDMR	transactions	register 	|	Finansinspektionen
Board of Directors Volvo Car AB (publ.)
Volvo	Car	AB	(publ.)	is	the	parent	company	of	the	Volvo	Car	Group
3)		The	call	options	have	been	issued	by	Nordea	Bank	Abp.	The	term	is	2	years,	and	each	
call	option	entitles	the	holder	to	acquire	one	B	share	in	Volvo	Car	AB	at	an	exercise	
price	of	SEK	53.
JONAS SAMUELSON
BOARD MEMBER AND CHAIRPERSON OF PEOPLE COMMITTEE AND 
AUDIT COMMITTEE
Born 1968.  
Board member since 2020. 
Education:	Master	of	Science	in	Economics	and	Business	Administration	
from	the	School	of	Business,	Economics	and	Law	at	the	University	of	
	Gothenburg,	Sweden.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Chairman	of	the	Board	of	Axel	Johnson	International	and	
Rosti	Group	AB.	Board	member	at	Axel	Johnson	AB,	Perrigo	Plc	and	Ansell	
Ltd.	
Professional experience: Previous	experience	from	finance	in	various	roles	
at	Saab	Automobile	AB	and	General	Motors	Corporation.	Former	CFO	at	
Munters	AB	and	CFO,	COO,	CEO	Major	Appliances	EMEA	and	CEO	and	board	
member	at	AB	Electrolux.	Former	board	member	in	Polygon	AB.
Holdings in Volvo Car AB (publ.), own and related parties:  19,807  
B shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE / BOARD OF DIRECTORS
51

===== SIDA 52 =====

LILA TRETIKOV
BOARD MEMBER AND MEMBER OF THE AUDIT COMMITTEE
Born 1978.  
Board member since 2021.
Education:	Studies	in	Computer	Science	at	the	University	of	California	
Berkeley,	United	States.	Studies	at	SAAD	School	of	Business,	University	of	
Oxford,	United	Kingdom.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Partner,	Head	of	AI	Strategy	of	NEA.	Board	member	of	
Xylem	Inc.	UBS.	Board	member	of	CapGemini,	Backflip,	Zendesk,	CuspAI	and	
Horizon3. 
Professional experience: 	Previously	Corporate	VP	and	Deputy	CTO	of	
Microsoft.	Previous	experience	includes	CEO	of	Engie	SA,	Terrawatt	Initia -
tive	and	Wikimedia	Foundation	and	several	senior	positions	within	Sugar -
CRM	Inc.,	Software	General	Manager	of	Evolving	Systems	Inc.,	Digital	
 General Manager of Bank of America and founder of GrokDigital.
Holdings in Volvo Car AB (publ.), own and related parties:  1,197  
B shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
DANIEL LI (LI DONGHUI)
BOARD MEMBER AND MEMBER OF THE AUDIT COMMITTEE
Born 1970.  
Board member since 2012.
Education:	Bachelor	of	Philosophy	from	the	Renmin	University	of	China.	
Master	of	Management	Engineering	from	the	Beijing	Institute	of	Machinery	
Industry,	China.	Master	of	Business	Administration	from	the	Kelly	School	of	
Business	at	Indiana	University,	United	States.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Executive	Vice	Chairman	of	Zhejiang	Geely	Holding	
Group	Co.	Ltd.	Chairman	of	Lotus	Group	International	Ltd	and	Lotus	Tech -
nology	Inc.	Board	member	of	Geely	Sweden	Holdings	AB,	Geely	Automobile	
Holdings	Ltd	and	Aston	Martin	Lagonda	Global	Holdings.	Independent	
Board	member	of	YTO	International	Express	&	Supply	Chain	Technology	Ltd.	
Professional experience: 	Previously	CEO,	VP	and	CFO	of	Zhejiang	Geely	
Holding	Group	Co.	Ltd.	Previous	experience	from	key	accounting,	financing	
and	corporate	management	positions,	such	as	CFO	and	General	Manager	of	
several	companies,	including	Guangxi	Liugong	Machinery	Co.	Ltd,	China	
Academy	of	Post	&	Telecommunication,	Cummins	Inc.,	BMW	Brilliance	
Automotive	Ltd.,	ASIMCO	Braking	System	(Guangzhou)	Co.	Ltd.	and	
ASIMCO	Braking	System	(Zhuhai)	Co.	Ltd.	Previously	Board	member	of	Pro -
ton	Holdings	Berhad,	ZEEKR	Intelligent	Technology	Holding	Ltd,	Polestar	
Automotive	Holding	UK	Plc,	Saxo	Bank	A/S	and	independent	Board	member	
of	China	CYTS	Tours	Holding	Co.	Ltd.
Holdings in Volvo Car AB (publ.), own and related parties:  0 B shares.1)	2)
Independent in relation to the company and Executive Management Team 
but not in relation to the company’s major shareholders.
DIARMUID O’CONNELL
BOARD MEMBER AND MEMBER OF PEOPLE COMMITTEE
Born 1963.  
Board member since 2021. 
Education:  Bachelor of Arts in History and Government from Dartmouth 
College,	United	States.	Master	of	Arts	in	Foreign	Policy	and	Political	Econ -
omy	from	the	University	of	Virginia,	United	States.	MBA	in	Strategy	and	
Finance	from	Kellogg	Graduate	School	of	-Management,	United	States.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Advisor	to	SK	On.	Chairman	of	the	board	of	Clarios.	
Member	of	the	Supervisory	Board	of	Albemarle	Corp,	Dana	Inc.	and	Mobility	
House Holding AG.
Professional experience: 	Previous	experience	from	Accenture	Consulting,	
Real	Time	Learning	McCann	Ericson,	Young	&	Rubicam	and	the	U.S	Depart -
ment	of	State.	Several	executive	roles	at	Tesla.	Member	of	the	Executive	
team	of	Fair	Financial	Corp.	Energy/Mobility	Consulting	for	Antin	Infrastruc -
ture	Partners
Holdings in Volvo Car AB (publ.), own and related parties:  599 B shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
1)		Information	on	holdings	in	shares	is	per	16	February	2026.
2)		For	information	on	transactions,	please	refer	to	the	website	of	the	Swedish	Financial	  
Supervisory	Authority.	 PDMR	transactions	register 	|	Finansinspektionen
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE / BOARD OF DIRECTORS
52

===== SIDA 53 =====

RUBY LU (RONG LU)
BOARD MEMBER 
Born 1971.  
Board member since 2023.
Education: M.A.	from	Johns	Hopkins	University	School	of	Advanced	Inter -
national	Studies	(SAIS)	and	a	B.A.	with	honors	from	the	University	of	Mary -
land. 
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Founder	and	managing	partner	of	Atypical	Ventures.	
Independent	board	member	of	Unilever	(NYSE:	UL)	and	an	independent	
board	member	of	YUM	China	(NYSE:	YUMC)	and	Kuaishou	(1024.HK).	
Professional experience: Venture	capitalist	investing	in	technology	start-
ups	in	the	US	and	China.	Founder	of	Atypical	Ventures,	an	early-stage	tech -
nology	investment	firm.	Co-founder	of	DCM	China,	a	venture	capital	firm.	
Prior	to	becoming	a	venture	capitalist,	Vice	President	in	Goldman	Sachs’	
technology	media	and	telecommunication	banking	group	in	the	US.	Former	
advisor	to	and	a	shareholder	in	EcarX	Holdings,	Inc	(Nasdaq:	ECX).
Holdings in Volvo Car AB (publ.), own and related parties:  65,000  
B shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
1)		Information	on	holdings	in	shares	is	per	16	February	2026.
2)		For	information	on	transactions,	please	refer	to	the	website	of	the	Swedish	Financial	  
Supervisory	Authority.	 PDMR	transactions	register 	|	Finansinspektionen
PIETER NOTA 
BOARD MEMBER
Born 1964.  
Board member since 2025.
Education:	Master’s	degree	in	Business	Administration	from	the	Erasmus	
University	of	Rotterdam,	the	Netherlands.
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Senior	Advisor	to	McKinsey	&	Company	and	Board	
member	in	Fortaegis	Technologies.	
Professional experience: Former	Member	of	the	Board	of	Management	
(Vorstand)	of	BMW	AG,	responsible	for	Customers,	Brands	and	Sales.	Earlier	
senior	executive	positions	at	Royal	Philips	NV	(CEO,	Consumer	Lifestyle	as	
well	as	member	of	the	Board	of	Management),	Beiersdorf	AG	(member	of	
the	Board	of	Management)	and	Unilever,	all	but	Unilever	with	a	global	
responsibility. 
Holdings in Volvo Car AB (publ.), own and related parties:  0 shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE / BOARD OF DIRECTORS
53

===== SIDA 54 =====

CAROLINE GRÉGOIRE-SAINTE-MARIE
BOARD MEMBER AND MEMBER OF THE AUDIT COMMITTEE
Born 1957.  
Board member since 2025. 
Education:	Graduate	of	Sciences	Po	Paris	and	Université	Paris	1	Panthéon	
Sorbonne	(Commercial	Law).
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Independent	Director	and	Audit	Committee	member	at	
VINCI	S.A.	(since	2019)	and	Director	of	Fnac	Darty	(Audit	and	CSR	Commit -
tees).
Professional experience: 	Extensive	executive	and	board	experience	across	
industrial,	construction,	and	finance	sectors.	Previous	board	roles	include	
Elior	Group,	Bluestar	Adisseo,	FLSmidth,	Wienerberger,	Elkem,	Groupama,	
Eramet,	and	Safran.	Former	executive	positions	include	CEO	and	Chair -
woman	of	Lafarge	Germany,	Tarmac	France	and	Belgium	and	Frans	Bon -
homme Group.
Holdings in Volvo Car AB (publ.), own and related parties:  0 shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
1)		Information	on	holdings	in	shares	is	per	16	February	2026.
2)		For	information	on	transactions,	please	refer	to	the	website	of	the	Swedish	Financial	  
Supervisory	Authority.	 PDMR	transactions	register 	|	Finansinspektionen
ANNA MOSSBERG
BOARD MEMBER
Born 1972.  
Board member since 2022.
Education:	MBA	from	Stanford	University,	USA,	MBA	from	IE	University,	
Spain,	Master	of	Industrial	Engineering	and	Management	from	Luleå	  
Technical	University	Sweden.	
Principal activities outside of Volvo Car Group and current board assign -
ments and similar:	Board	member	and	member	of	the	Finance	and	Strategy	
Committee	in	Swisscom	AG,	Board	member	and	member	of	the	Remunera -
tion	and	Sustainability	Committee	and	Audit	Committee	in	Swedbank	AB,	
Board	member	and	member	of	the	Nomination	and	Compensation	Commit -
tee	in	Ringier	AG.
Professional experience: 	Previous	experiences	include	CEO	of	Silo	AB,	
Business	Area	Manager	at	Google	Sweden,	Senior	Vice	President	Strategy	
and	Portfolio	Management	at	Deutsche	Telekom	AG,	CEO	of	Bahnhof	AB	
and	Vice	President	of	Telia	International	Carrier	AB.	Previous	board	member	
and	member	of	the	Audit	Committee	in	Schibsted	ASA,	Orkla	ASA,	Marshall	
AB and Byggfakta AB.
Holdings in Volvo Car AB (publ.), own and related parties:  5,687  
B shares.1)	2)
Independent in relation to the company and Executive Management Team as 
well as the company’s major shareholders.
OVERVIEW 3
MARKET 15
OUR STRATEGIC FRAMEWORK 18
DIRECTORS’ REPORT  29
RISK 36
CORPORATE GOVERNANCE  42
CORPORATE	GOVERNANCE	REPORT	
BOARD	OF	DIRECTORS	
EXECUTIVE	MANAGEMENT	TEAM	
EXTENDED	EXECUTIVE	  
MANAGEMENT	TEAM	
AUDITOR’S	REPORT	
FINANCIALS  61
SUSTAINABILITY  130
THE SHARE 220
OUR HERITAGE 222
VOLVO CAR GROUP  / CORPORATE GOVERNANCE / BOARD OF DIRECTORS
54

===== SIDA 55 =====