• Sweden edition
Volvo profits plummet as global sales slump

Volvo profits plummet as global sales slump

Published: 05 Sep 2012 17:17 GMT+02:00
Updated: 05 Sep 2012 20:52 GMT+02:00

Volo Cars, owned by China's Geely Holdings, reported operating profit of 239 million kronor ($35.63 million) in the first six months of 2012, compared to 1.53 billion kronor during the same period last year.

Turnover rose to 65.3 billion kronor from 62.8 billion kronor the year before, while global sales also dropped 4.1 percent to 221,309 cars.

According to Volvo Cars CEO Stefan Jacoby, the economic uncertainties plaguing many of the carmakers major markets are likely to continue through the end of the year, and competition remains fierce.

"We find ourselves in a transition," he told reporters in Stockholm on Wednesday.

"We need to get used to the fact that we live in an unpredictable global environment."

Jacoby said a looming recession in the eurozone has already resulted in lower sales in southern Europe and Sweden.

Through August, Volvo sales in Sweden are down 12.4 percent to 32,145 cars.

Jacoby however rejected rumours of trouble with the building of Volvo's planned factory in China, saying the plant was scheduled to be in operation by 2014.

The worsening market conditions mean that Volvo will reduce production to 50 cars per hour at its factory in Torslanda near Gothenburg, resulting in the shedding of 287 positions provided by a staffing company.

But Jacoby said no layoffs of permanent staff were planned.

"For the moment, we have no ambitions to get rid of any of our full-time workers or managers," he said, according to TT.

TT/The Local/dl

Follow The Local on Twitter

Don't miss...X
Left Right

Your comments about this article

20:31 September 8, 2012 by viennacalling
If you go to Autodata US they have the august sales statistics and the big 4 Ford GM Chrysler and Toyota had a good month and YTD dont forget the japanese sales are still affected by the sunami. to me it appears that the strength of the kroner is affecting sales of the volvo
03:34 September 12, 2012 by Escort
Could this be due to the fact that Volvos are now too expensive? They have increased their prices significantly in recent years and there is much talented competition from Ford, VW, Honda, etc. which is more affordable. Almost £20,000 for the base V40 puts these beyond the reach of many private buyers who have bought Volvo in the past. They will buy a Focus, Golf or Civic instead and Volvo will left with falling sales and profits. Who can blame them?
17:18 November 10, 2012 by oledeluca
High quality, reliable and safe cars that are environmentally sound are needed but most of all - they MUST be affordable by the many! I believe that here in the USA Volvo will be a has-been. Now their primary market is the luxury market, not the middle of the line vehicles. We cannot buy an S40, V50, V40 or even a V70 only big fat gas hogs like the XC90. Big mistake! Hope they don't go the way of my favorite vehicle.... SAAB or everyone will be buying Toyota Prius', Honda Accords and my little new car the VW Golf.
21:30 February 9, 2013 by Ivan1619
Prior to owning Volvo's I owned Saabs. I loved the Saab's and was very disappointed whem GM got a hold of the company. As for Volvo's, I presently own two a 2013 S60 and a 2005 V50. I switched to Volvo's because of the quality and look upon them as the Swedish Mercedes. However, I do wish you would keep your Volvo (Local) page up to date. Although Geely now owns Volvo I am very concerned about their influence and the possibility Geely will cheap out the brand. As mentioned, cost of the car has become an issue and I suppose that's why you may build them in China. Like many I will not own a Chinese built Volvo. The Chinese Car makers have not reached Swedish standards or American standards for that matter. In summary, the idea of going to only four cylinder engines may be a mistake. If you do keep the T5 or T6 as an option. Lets hope that Volvo's will not become a has-been in the US or world market.
Today's headlines
Sweden worst in EU at getting foreigners jobs
Photo: Henrik Trygg/Imagebank Sweden

Sweden worst in EU at getting foreigners jobs

UPDATED: Swedish citizens are the most likely to be employed in the EU, but Sweden is among the very worst when it comes to getting non-EU citizens into work. READ  

Man arrested for burning partner's face
Photo: Linn Malmén/TT

Man arrested for burning partner's face

Police suspect that a man in western Sweden is responsible for the extreme burns on his partner's face. The man has been arrested on suspicion of aggravated assault - and potentially attempted murder. READ  

In Pictures: Conchita Wurst in Stockholm
Photo: Maja Suslin/TT

In Pictures: Conchita Wurst in Stockholm

Eurovision winner and LGBTQ idol Conchita Wurst is in Stockholm this week for Stockholm Pride - and joined Swedes at Skansen for a colourful summer sing-along. READ  

Stockholm holds colour contest for new metro
Photo: Joel Bagon

Stockholm holds colour contest for new metro

Stockholm's new metro line is not set for preliminary construction until 2016, and will not be completed until 2022 - but Swedes already have the chance to vote for the new line's colour. READ  

Sweden's heat wave officially over
Photo: Johan Nilsson/TT

Sweden's heat wave officially over

The heat wave that swept over Sweden recently has finally passed, meteorologists reported on Wednesday, promising cooler and more autumnal temperatures around the corner. READ  

Ukraine rebels release kidnapped Swede
Rebel tanks on the road to Horlivka in June. Photo: TT

Ukraine rebels release kidnapped Swede

The Swede who was kidnapped by pro-Russian rebels has been released after nearly three weeks of being held hostage - although no one knows where he is now. READ  

Stockholm Pride 2014
Stockholm Pride bars Sweden Democrats
Photos: Henrik Montgomery/Fredrik Persson/TT

Stockholm Pride bars Sweden Democrats

While a record number of ministers and party leaders will participate in the Stockholm Pride Parade this year, there are notable exceptions - including SD leader Jimmie Åkesson, who is not only 'uninterested' but banned. READ  

Gender neutral 'hen' enters dictionary
Soon 'hen' will be found on this page. Photo: The Local

Gender neutral 'hen' enters dictionary

The ever-controversial pronoun 'hen' has won its battle and is set to officially become part of the Swedish language. READ  

Pines, polska and magic: Urkult Music Festival
Photo: Danny Chapman/The Local

Pines, polska and magic: Urkult Music Festival

The Urkult music festival in northern Sweden may be less sex, drugs and rock'n'roll and more family fun, chai and polska dancing - but Danny Chapman says it’s one of the most magical Swedish experiences he has had. READ  

Presented by Stockholm Business Region
Introducing... ID cards and permits in Stockholm
You want one of these. Photo: Skatteverket

Introducing... ID cards and permits in Stockholm

When it comes to data-driven life, from daycare to healthcare, Sweden is in a league of its own. Above all, your personal number is the key that unlocks life in Stockholm. READ  

Stockholm Pride: Allsång på Skansen with Conchita Wurst
Sponsored Article
Introducing... ID cards and permits in Stockholm
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Top ten Swedish taboos
Seven-year-old Swede cycles to Berlin
Blog updates

27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »


24 July

Sharing our Pride: Celebrating Love & the LGBT Community! (Stockholm in my American Heart) »

"It’s mid- July in Stockholm, and with much of the city on vacation, things can seem a little quiet – the streets, the bus, and the grocery store. One thing that has not paused for a summer break, though, is preparation for Stockholm’s Pride Festival, which will take place from July 28 to August 2...." READ »

'Gaza conflict needs help, not empty rhetoric'
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
What's On in Sweden
People-watching July 23
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Top ten Swedish beach hot spots
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
In Pictures: The Local's Property of the Week
Photo: Finest.se
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
What's On in Sweden
Photo: Lisa Mikulski
Hope springs eternal for expat pet shop owner
Princess Estelle steals limelight at mum's birthday
Swedes risk infants' lives by covering up prams
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at: