Volvo Cars announced its new shared mobility business unit as part of a broad expansion of its car sharing and mobility services strategy.

The new business unit will be based around Sunfleet, a car sharing company that has been operated by Volvo since 1998. Sweden-based Sunfleet has around 50,000 subscribers that generate approximately 250,000 transactions in more than 50 Swedish cities, according to Volvo.

"Private car ownership will not disappear, but as an automaker we need to embrace the fact that it will reduce and, more importantly, change," said Håkan Samuelsson, president and chief executive of Volvo Cars. "We have a proven and profitable concept in our home market which we intend to leverage as we develop a global concept."

Full details of Volvo Cars' revamped shared mobility strategy will be announced in coming months, but the company intends to complement current and traditional car ownership models with a range of on-demand mobility options.