Volvo logs $301.9 million operating profit in 2013

Article by Christian A., on March 22, 2014

Volvo overcame a weak start to 2013 as weak sales in the United States to post SEK1.92 billion ($301.9 million) in operating profit in the year, thanks to one-off gains from the sale of technology to parent Zhejiang Geely Holding Group. Operating profit a year ago was SEK66 million.

The carmaker logged SEK577 million in losses in the first half of 2013. It also saw its drop to SEK122.25 billion in 2013 from SEK124.55 billion in 2012. "This strong turnaround from the first half of 2013 is further tangible proof of Volvo Car Group's progress in implementing its transformation plan," Volvo said in a statement.

The carmaker posted a 1.4-percent rise in global vehicle sales in 2013 to 427,840 units. Volvo is leaning on strong sales of locally built units in China to achieve a target of nearly doubling sales by 2020. In 2013, Volvo logged a 46-percent hike in sales in China to 61,146 units.

China has become a key market for Volvo as the carmaker try to take on larger luxury brands like BMW, Mercedes and Audi while producing enough volumes to meet the costs needed to invest in new vehicles. Volvo is expecting new models and a further expansion of its dealer network in China to underpin growth.

Volvo, however, suffered a 10-percent drop in sales in the US in 2013, apparently due to lack of new models. In response, the carmaker has replaced its top management in North America and is hoping that an overhaul of existing models and a launch of V60 sports wagon will revive sales in the US. Volvo is expecting its sales to grow by "a good" five percent in 2013.

“We are delivering on the plan we set out four years ago: focus on profitability, revitalise the brand, reinforce our product strengths and leverage our potential and position in China,” said President and CEO Håkan Samuelsson. “2013 was a year of groundwork for Volvo Cars, successfully preparing the way for the future. This year our total sales are forecast to increase and we will – with the XC90 – reveal the first product of a portfolio that will delight our customers, paving the way for the company’s future growth.” [source: Volvo]

Topics: volvo, profit

If you liked the article, share on:

Comments

Recommended

To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 2017
It seems that BMW’s high-performance division -- BMW M – still has not warmed up to front-wheel drive vehicles. So those who had been looking forward to BMW M vehicles...
by - October 22, 2017
Porsche already has the Performance Package for their range-topping Macan Turbo, which is currently available in some countries. Soon, this model will be dethroned by something even fancier by the...
by - October 22, 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