Third quarter of Volvo Cars offered lower profits

Sales rose nearly 18% to nearly SEK 56.8 billion. This means in number of cars nearly 155,000 (the same quarter last year nearly 136,000).

The result fell by nearly 55% to SEK 1,138 billion compared to the same quarter of last year. The operating margin was only 3.2% (7.6% at the same period last year).

Read more: Powerful profit for Volvo Cars

Håkan Samuelsson, CEO of Volvo, explains the escalation of costs and fees.

"Looking ahead, current trade tensions are worrying for the automotive industry and for us," he says.

In the paragraph on The risks at the end of the report can not be understood as an action plan to deal with an increasingly harsh climate in world trade:

"… our reaction to rising fares is to adjust prices in certain markets, to transfer vehicles to other markets and to shift production, in order to achieve Volvo Cars' short and long-term goals. term. "

Volvo Cars manufactures in Europe, China and the United States. However, it is difficult to move large volumes of manufacturing. A large-scale commercial war becomes obvious even if you have a plan of action.

Out of more than 40,000 employees and more than 4,000 consultants working for Volvo Cars, tensions are growing.

Product oriented, Volvo is strong. In Europe, new car sales fell by more than 1% in the third quarter, while Volvo sales rose by just over 8%. In the most important Volvo market, China, the new car market has dropped by just over nine percent and Volvo by just over 14%. In the United States, while the total market has dropped by just over three percent, Volvo has grown more than 15 percent.

The global appetite for Suvar earns money at Volvo. More than 60% of sales revenue now comes from suvarna. The XC60 continues to be the bestseller. Newcomer XC40 is also sensible.

What does the future look like?

Well, aside from the things you can not expect, a kind of commercial war, Volvo is posting bright for the rest of the year. Continued sales growth, reduced investment costs and a solid result are reflected in the radar. In cars, there will be more than 600,000.

Volvo rolls on.

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