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Volvo Cars expected to post major losses

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Volvo Cars expected to post major losses
13:23 CEST+02:00
Volvo Cars, owned by the Chinese auto maker Geely, is expected to post heavy losses in 2012 in China where sales were weaker than expected while investments were substantial, daily Svenska Dagbladet (SvD) reported on Thursday.

The paper, citing "well informed sources", said that Volvo Cars would report losses of two to four billion kronor ($307 to $615 million) in China for the year.

Volvo Cars was acquired by Geely in 2010, but the Swedish brand has seen its market share decline and profits dwindle since then while Geely, which sells the cheaper brands Geely, Gleagle, Emgrand and Englon, remains in good health.

Volvo Cars has been struggling in western Europe, its biggest market, and has had a hard time breaking into China, the world's biggest auto market.

In March, Volvo said it had discovered problems with its sales figures in China, implying that they had been exaggerated. Officially, the company sold 11 percent fewer cars in 2012 than in 2011.

Volvo Cars does not announce in advance the publication date for its earnings reports.

In the first quarter of 2013, it sold 8.0 percent fewer cars than in 2012, but reported a rise of 27 percent in China.

AFP/The Local/og

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