GOTHENBURG - Volvo AB Chief Executive Leif Johansson said he aims to increase Volvo Car Corp. unit sales by 25 percent to 500,000 cars a year by 2000.
Johansson, who joined Volvo in April, also told industry analysts that he will cut one third of his managers over the next three years as part of an effort to raise group profits.
He wants to raise group sales from SKr165 billion ($21 billion) to SKr250 billion by 2000, and to push operating margins up to 5-7 percent.
Most of the growth would come from eastern Europe, Asia and Latin America. Johansson wants to increase Volvo Car Corp. sales in eastern Europe from SKr2.8 billion this year to SKr15 billion by 2000.
In addition to cutting out managers, the car division intends to reduce component costs by 15 percent.
Johansson also wants to source 20 percent of parts from low-cost eastern Europe, compared with a tiny percentage now.
Volvo now has three platforms. It will reduce that to two, but it will introduce more models than it now offers.
Volvo's three current platforms are the S40/V40, the S70/V70 and the outgoing 90/900 series.
Next year's replacement for the 90/900, code-named P23, will share a platform with the future S70/V70. It is expected to be called the S90 when it goes into production.
Volvo's second platform is expected to be the same size as the current S40/V40 series.
The S40/V40 is built at the NedCar joint venture in Born, Netherlands. The platform is shared with the Mitsubishi Carisma.