Volvo celebrates strong growth in third quarter

Swedish car maker Volvo, owned by Chinese group Geely, cheered continued strong growth in 2017.

Volvo celebrates strong growth in third quarter
Volvo Cars ceo Håkan Samuelsson. Photo: Erik Simander/TT

Operating profit rose 77.5 percent to 3.7 billion kronor in the third quarter of 2017, compared to the same period last year. Meanwhile, net revenue grew to 48.9 billion, up 18.4 percent on 2016.

Global retail sales in the third quarter rose by 10.6 percent to 135,831 cars sold.

“The growth in net revenue was driven by the positive sales development in all markets and an improved sales mix as a result of increased sales of the new S and V90 as well as the XC60,” said Volvo Cars CEO Håkan Samuelsson in a statement on Friday.

“We see strong demand for our products even in regions where markets are softening. In China, we have seen a strong growth in sales and our local manufacturing footprint supports our local expansion. The US has been showing signs of recovery since the beginning of the year, when our sales was impacted by delivery constraints.”

He said the company’s European markets were performing well with the XC60 the best-selling model.

Volvo Cars in July revealed plans to equip all new cars with an electric motor from 2019, making it the first of the world’s traditional car makers to pull the plug on cars powered only by a combustion engine.

“We think this is the right future for Volvo Cars and this recognition confirms that we are leading the way on this important journey,” said Samuelsson.

“For the full year 2017, I anticipate continuous growth in line with the previous nine months along with more exciting news about our cars and service products. The results so far demonstrate that we are heading in the right direction.”

Volvo Car Group is owned by Chinese Geely Holding. It is headquartered in Torslanda, Gothenburg, and has a factory there as well as in Ghent, Belgium, and Chengdu, China.