Volvo to invest 110 billion won in Korea this year

Industry

Published: 14 Mar. 2023, 18:16

Volvo to invest 110 billion won in Korea this year

Volvo Cars CEO Jim Rowan speaks during a press conference Tuesday at the Silla Hotel in central Seoul. [VOLVO CARS KOREA]

Volvo Cars will invest 110 billion won ($84 million) in Korea this year to strengthen customer services to up its sales by at least 20 percent.

The ambitious plans were announced Tuesday by Volvo Cars CEO Jim Rowan who visited Korea for the first time in seven years to mark the 25th anniversary of the Swedish automaker's entry in Korea.

With the investment, Volvo Cars will open seven more showrooms locally, and eight more service centers.

"Korea is a very important market as it was the ninth largest market for Volvo Cars last year," Rowan said during a press conference Tuesday morning.

"To show appreciation for Korean customers’ enthusiastic interest and support, we will bring Volvo EX90, its iconic model for safety and electrification, to Korea late this year."

Coming with a 111-kilowatt-hour lithium-ion battery, the seven-seater EX90 SUV will be able to run 600 kilometers (370 miles) per single charge, according to WLTP standards.

The vehicle is equipped with a total of 16 sensors, five radars and eight cameras, which can reduce serious accidents by 19 percent.

It also comes with LiDAR sensors, which Volvo describes as the “car’s eyes,” a remote sensing system that uses a pulsed laser to accurately detect objects.

Volvo Cars' EX90 SUV [VOLVO CARS KOREA]

It will be able to detect pedestrians up to 250 meters (820 feet) away, night or day.

The EX90 will have batteries manufactured by LG Energy Solution.

Volvo sold 14,431 vehicles in Korea last year, down 4 percent on year. Still, it was the ninth largest market for the Swedish brand, compared to 2013 when it was 28th.

"We aim to sell 17,500 units in Korea this year, which is up by 20 percent from the previous year," Rowan added.

All new Volvo cars available in Korea will have an upgraded TMAP Infotainment system, a navigation service the automaker developed with SK Telecom with an investment of 30 billion won.

Drivers will be able to make payments through the infotainment system, which will also be available when they charge their vehicles.

Wavve streaming service will be newly added so that people can watch videos and movies through the infotainment system.

When asked about possible joint battery plants with Korean battery makers, Rowan said "Volvo has already been working closely with Korean companies," and "will continue the relationship further."

Local media reported last week that Volvo is in talks with Samsung SDI for a possible joint battery plant.

BY SARAH CHEA [chea.sarah@joongang.co.kr]