A key reason why Volvo exceeded 600,000 global sales for the first time in its history in 2018 and reported record earnings was strong demand for the XC40 compact SUV. In 2018 Volvo sold 75,828 units of the XC40, which is the reigning European Car of The Year. Now comes the V60 Cross Country (pictured below) to add to Volvo’s success.

Volvo’s operating profit (EBIT) for the fourth quarter was 4.5 billion Swedish crowns (USD488.8 million), an increase of 25% compared with the same period last year. The company’s operating profit margin for the 3-month period was 6.2%, up from 5.9% during the same period last year.

The positive final quarter of 2018, and record sales of 642,253 cars last year, helped Volvo set a new high for full-year earnings at 14.2 billion crowns (USD1.54 billion), an increase of 0.9% on last year, the company said on Thursday. Volvo’s operating profit margin for 2018, however, dipped to 5.6% from 6.7% last year. Volvo’s target is an 8% margin.

Volvo Cars management is setting a record target of 700,000 vehicle sales for 2019.