Advertisement

Volvo hits record sales, but trade war dents profits

AFP/The Local
AFP/The Local - [email protected]
Volvo hits record sales, but trade war dents profits
An electric-powered Volvo is exhibited at a car show. File photo: AP Photo/Andy Wong

Volvo Cars, the Swedish luxury brand owned by China's Geely, defied a slowing global auto market to set a record for sales in the first half of the year, although US trade war tariffs and falling prices squeezed profits.

Advertisement

The 7.3 percent year-on-year jump to a record 340,286 cars during the first half of the year was accompanied by a 5.9 percent rise in sales revenue to 130 billion Swedish kronor ($13.9 billion, 12.4 billion euros) 

"At a time when most markets in the world see stagnating car sales, we have had strong growth in the first half," chief executive Hakan Samuelsson was quoted as saying in a statement.

But increased pricing pressure and tariffs squeezed operating profit, he acknowledged, adding that the company had implemented cost controls that should be felt in the second half of this year.

Reflecting these pressures, operating profit tumbled nearly 30 percent to 5.5 billion Swedish kronor.

Last year Volvo Cars, bought by Geely from Ford in 2010, set an annual sales record of more than 600,000 vehicles although profits were already feeling the effects of the US trade war with China and the European Union. 

READ ALSO: Strange but true: North Korea owes Sweden millions for Volvos from the 1970s

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also