Jim Rowan, CEO of Volvo Cars, addressed concerns over the high prices of Volvo cars sold in Korea during a recent interview with Korean journalists in Stockholm, Sweden. In his response, he noted, “I’m not sure about that. (laughing) I might need to call our sales department in Korea. The automotive market in Korea is highly competitive, which might explain the pricing strategy there.” He highlighted the advanced technical knowledge of Korean customers and their expectations for after-sales service, emphasizing Volvo’s commitment to investing in technology and meeting after-service demands.
During the interview following the global unveiling of the mid-size all-electric sedan ‘ES90’, Rowan discussed the impact of potential U.S. tariffs under the Trump administration. He mentioned Volvo’s production capabilities in Charleston, South Carolina, which allow the company to quickly increase production if necessary to mitigate tariff impacts.
Regarding Volvo’s transition to electric vehicles, Rowan acknowledged the slower-than-expected global shift to battery electric vehicles (BEVs), excluding China, due to insufficient charging infrastructure. However, he expressed confidence in Volvo’s diverse range of electrified vehicle offerings, including mild hybrids and plug-in hybrid electric vehicles (PHEVs).
When asked about autonomous driving, Rowan distinguished between advanced driver-assistance systems (ADAS) and fully autonomous driving, suggesting that true autonomy involves a driver-free and hands-off experience, which is still a long way from realization.
Rowan also explained Volvo’s technology strategy, focusing on the integration of their ‘superset tech stack’ into vehicles like the ES90 to enable continuous software enhancements and improve customer loyalty. This approach not only enhances the driving and infotainment experience but also aligns with consumer expectations for regular updates akin to smartphone apps.
Lastly, when discussing the choice of launching a sedan like the ‘ES90’ instead of an SUV in the global electric vehicle market, Rowan pointed to strong sedan preference in Asian markets, especially China, while aiming for a modern design with better aerodynamics and range efficiency.