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Volvo Cars to invest over USD $84m on e-motor production by mid-decade

Volvo Cars to invest over USD m on e-motor production by mid-decade
  • Al-Futtaim’s Trading Enterprises, exclusive distributor of Volvo Cars in the UAE, will introduce in 2021 the electric XC40 Recharge P8
  • Volvo Cars aims for 50 per cent of sales to be electric by 2025

 Dubai, UAE, 4 January 2021: Trading Enterprises, an Al-Futtaim Automotive company and exclusive distributor of Volvo Cars in the UAE, has announced today that Volvo Cars plans to establish complete in-house e-motor production by mid-decade. Aiming to invest 700 million SEK (approx. USD $84m) to this end in coming years, Volvo Cars will assemble the electric motors at its powertrain plant in Skövde, Sweden.

The company is committed to becoming a premium electric car company and aims for its global sales to consist of 50 per cent fully electric cars by 2025, with the rest hybrids. In the UAE, Al-Futtaim’s Trading Enterprises – Volvo has offered a complete range of hybrid models including plug-in hybrid variants of the XC90, XC40, S90 and S60. Following the brand’s global electrification strategy, Trading Enterprises – Volvo will also start rolling out new electric models in 2021, led by the electric Volvo XC40 Recharge P8 that is expected to arrive in the local market over the next 12 months. The XC40 Recharge P8 represents a true milestone as the company’s first fully electric car, offering a range of over 400 km (WLTP) on a single charge and an output of 408hp.

Oscar Rivoli, Managing Director of Trading Enterprises commented: “2020 was the “Year of Hybrid” for Volvo Cars in the UAE, as we offered a wide range of five plug-in hybrid vehicles from across both our SUV and Sedan families. As we start 2021, we are very excited to be part of Volvo Cars’ e-motor production plans, as we aim to roll out the brand’s electrification strategy in the UAE. As a key player in the UAE auto sector, we, at Al-Futtaim’s Trading Enterprise, encourage the adoption of electric vehicles in the country in line with UAE Vision 2021 of sustainable development.

The Skövde operations have been part of the Volvo Cars story ever since the company’s founding in 1927. Adding e-motor production to the plant’s activities means the historic ground in Skövde will be a part of the company’s future as well.Volvo Cars also announced earlier this year that it is investing significantly in the in-house design and development of e-motors for the next generation of Volvo cars. With the planned investments in Skövde, it now takes the first steps towards in-house e-motor assembly and manufacturing.

In a first stage, the Skövde facility will assemble e-motors. At a later stage, the company intends to bring the full manufacturing process for e-motors in-house into a facility in Skövde.

“The very first Volvo from 1927 was powered by an engine built in Skövde,” said Javier Varela, senior vice president of Industrial Operations and Quality. “The team is highly skilled and committed to delivering on the highest quality standards. So, it is only fitting that they will be a part of our exciting future.”

Taking over the role of the internal combustion engine in car engineering, e-motors are a fundamental building block of electric cars, together with the battery and power electronics. The interplay between these three component areas is crucial in developing premium electric cars.

Bringing the development and production of e-motors in-house will allow Volvo Cars engineers to further optimise electric motors and the entire electric driveline in new Volvos. This approach will allow engineers to make further gains in terms of energy efficiency and overall performance.

Design and development of the company’s electric motors takes place in Gothenburg, Sweden and Shanghai, China. Earlier this year Volvo Cars opened a new electric motor lab in Shanghai, in addition to ongoing e-motor development in Gothenburg, Sweden and state-of-the-art battery labs in China and Sweden.

The remaining activities at the Skövde engine plant, focusing on the production of internal combustion engines, will be transferred to a separate subsidiary of Volvo Cars, named Powertrain Engineering Sweden (PES). PES is intended to be merged with Geely’s combustion engine operations, as announced earlier.

A subsidiary of the Al-Futtaim Automotive Group, Trading Enterprises was established in 1970s in Dubai and is the exclusive authorised distributor for Volvo in the UAE. It is empowered by a highly skilled and trained professional team to provide a complete car buying experience. Al-Futtaim Automotive is one of five divisions within the Al-Futtaim Group which provides quality products and services that enrich people’s lives and aspirations each and every day.

About Trading Enterprises – Volvo

Trading Enterprises, part of Al-Futtaim Automotive, is the exclusive distributor of Volvo cars in the UAE since 1985. The ISO9001:2008 company represents the world-renowned Volvo cars brand well known for its intuitive innovations, safety, environmental performance and Scandinavian design through its sales and after-sales network in Dubai and Abu Dhabi.

Trading Enterprises – Volvo offers a complete range of premium mobility solutions in the premium segment that includes: Sedans (S60 and S90), Versatile estates (V60 and V90) and SUV vehicles (XC40, XC60 and XC90). Trading Enterprises is regarded as pioneers in the region by Volvo when it comes to adopting Volvo best practices and has recently introduced the region’s first Volvo Retail Experience Showroom and Volvo Personal Service – which offers a human-centric approach to sales and service.

About Al-Futtaim Automotive

Al-Futtaim Automotive currently has a large portfolio of auto companies covering the full spectrum of automotive solutions, for both private customers and commercial interests. Spanning more than 25 global vehicle brands, its automotive businesses are located across over 170 physical locations covering the entire automotive value chain.

About Al-Futtaim

Established in the 1930s as a trading business, Al-Futtaim today is one of the most diversified and progressive, privately held regional businesses headquartered in Dubai, United Arab Emirates.

Structured into four operating divisions; automotive, financial services, real estate and retail; employing more than 42,000 employees across 25 countries in the Middle East, Asia and Africa, we partner with over 200 of the world’s most admired and innovative brands.

Al-Futtaim’s entrepreneurship and relentless customer focus enables the organisation to continue to grow and expand; responding to the changing needs of our customers within the societies in which we operate.

By upholding our values of respect, excellence, collaboration, integrity; Al-Futtaim continues to enrich the lives and aspirations of our customers each and every day.

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