Volvo Cars logs operating profit in 2013, says CEO

Article by Anita Panait, on January 16, 2014

Volvo Cars returned to profit in 2013, so confidently declared its chief executive Hakan Samuelsson. "Our target was to break even... but I can declare already today that... we are back in the black, which is extremely positive," Samuelsson told Reuters in an interview on the sidelines of the 2014 Detroit auto show. Volvo officials remarked that Samuelsson was referring to the carmakers’ operating profit.

Volvo, which would disclose its financial results for 2013 in March 2014, logged an operating loss of SEK577 million ($88.71 million) in the first half of 2013.

Samuelsson said the turnaround was a result of Volvo's restructuring of its dealership network in China, boosting the carmaker’s volume in the country by 46 percent to 61,146 vehicles, as well as to an overhaul of its cost structure around the world.

Thanks to its aggressive cost cuts, Volvo made money despite logging only modest gains in global sales volume in 2013, Samuelsson said. Volvo posted a 1.4-percent jump in sales in 2013 to 427,840 vehicles.

"This year our focus will be growth," Samuelsson said. He remarked if 2013 was “sort of a year of consolidation,” 2014 will be a year of growth."

Samuelsson remarked that a key component of the carmaker’s 2014 growth strategy is the United States market, where it has been struggling. In 2013, Volvo's sales in the US dropped 10.1 percent to 61,233 vehicles, according to research firm Autodata. [source: Reuters]

Topics: volvo, profit, ceo

If you liked the article, share on:

Comments

Recommended

Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 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