Volvo Cars logs 17% jump operating profit in 2014 to $271 million

Article by Christian A., on March 4, 2015

Volvo Cars posted a 17-percent jump in operating profit in 2014 to SEK2.25 billion ($271 million) from SEK1.92 billion in 2013. The carmaker also logged a 6.3-percent jump in revenue to SEK130 billion. Volvo chief executive Hakan Samuelsson remarked that the carmaker is currently in an investment phase, which fruits will start to be felt from this year.

The carmaker also posted record sales of 465,866 cars in 2014, although that would be just over half of its 2020 sales goal of 800,000 cars. However, that figure means the carmaker is slowly penetrating a premium market lorded over by German luxury groups BMW, Audi and Mercedes-Benz.

Samuelsson remarked to Reuters that the carmaker expects to sell around 500,000 cars this year by outgrowing underlying markets in Europe and China and posting gains in the United States. He said that Volvo plans to post a new sales record this year as well as a clear improvement in profitability during the second half.

With the need to sell enough vehicles to cover the billions of dollars invested in new models, Volvo is relying on continued gains in China, although it also has to grow elsewhere. For instance, the carmaker’s revenue in the US has dropped over the past decade due to lack of new models and lack of financing options.

Likewise, it has no production base in the US, which means it has become sensitive to shifts in currency exchange. Volvo also saw its sales in 2014 drop 7 percent.

To halt that downward movement, Volvo has started to implement some measures like placing a new management while it tries to ship China-made models to the US. In the second quarter of 2015, the carmaker will commence deliveries of the new XC90 SUV, the first vehicle to be launched following a five-year, $11 billion investment program.

“Looking back at 2014’s performance gives me confidence in our future performance,” said Mr Samuelsson. “By any measure, Volvo Cars is performing well. Sales are growing, a range of all new products are on the way, we are leading the field in new technologies and Volvo Cars is well positioned for the future.” [source: Volvo]

Topics: volvo, profit

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries