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Volvo credits China, Europe for first-half profitability
Fri, 22 Aug 2014If everything goes to plan, Volvo might be showing the first signs of a turnaround after several years coping with old products and a staid image. The Swedish brand is imminently launching its next-gen XC90 SUV on a completely revised, modular platform and using a cutting-edge family of engines, and it has even more products to take advantage of the fresh components on the drawing board. "We are excited about the launch of the all-new XC90, which marks the beginning of the re-launch of the Volvo brand," said CEO Håkan Samuelsson in the company's announcement. In the meantime, the business is moving back to profitability and is even forecasting growth through the rest of 2014.
In Volvo's recently released financial and sales results for the first six months of the year, volume was up 9.5 percent to 299,013 cars. On top of that, operating income reached 1.21 billion Swedish krona ($175 million) after posting a loss in the same period in 2013. Net income was also improved to 535 million Swedish krona ($77.4 million), which was also a reversal from a negative last year.
With these great results, Volvo is now forecasting 10 percent sales growth worldwide by the end of the year, and the key to it is a booming market in some regions. China, home to parent company Geely, was up 34.4 percent first half of the year. It's now Volvo's biggest market in the world and helped by exclusive models like the S60L (pictured above) and S80L. "We are growing our presence in China and we expect to sell at least 80,000 cars there this year," said Samuelsson in the company's forecast.
Volvo eying return to 100k US sales to ensure dealer profitability
Thu, 13 Feb 2014Struggling Volvo may be on a verge of a renaissance thanks to the forthcoming completion of its lauded concept car trilogy, new Drive-E engine family and much-discussed SPA modular platform. Its nascent renewal is mostly being financed by $11-billion in funding from its Chinese parent company, Geely, and if it all goes right, Volvo hopes to sell 100,000 cars a year in the States by 2016. That milestone is vital, because it would ensure Volvo's US dealer network is profitable, according to Volvo CEO Håkan Samuelsson.
In a new Ward's Auto story, Samuelsson notes that his company is launching a slate of fresh products in the coming years, including the new-to-the-US V60 wagon and mid-cycle updates for its S60 sedan and XC60 crossover. But the most important new vehicle will be the recently spied XC90 that is expected to be unveiled just before the end of this year. Samuelsson is also looking at future vehicles for the US, including replacements for the S80 and V70. The V40 is also planned for the US, but not until the next generation, according to the Volvo CEO.
Of course, it's going to take a lot to reach 100,000 US sales in three years. Volvo sold just 61,233 units here in 2013, and according to WardsAuto, Volvo hasn't sold 100,000 cars in the US since 2007. To reach its goal, Volvo's stateside business will need to grow sales by about 40 percent.
Tony Nicolosi confirmed as Volvo's North American CEO
Tue, 14 Jan 2014This past October, John Maloney stepped down from his post as CEO at Volvo Cars North America. In his place, the Swedish automaker tentatively promoted Tony Nicolosi, who had until then served as head of Volvo Car Financial Services. The appointment was reportedly temporary, giving Nicolosi the title of acting CEO. But according to Automotive News, his position has now been confirmed for the long run.
Although Volvo has yet to announce a new director for its financial arm, Nicolosi says they have found the right person and will announce sometime between now and the National Automobile Dealers Association convention, set to take place later this month in New Orleans.
Last month, Volvo also announced that its global communications chief Bodil Eriksson is moving from the home office in Gothenburg to the North American office in Rockleigh, New Jersey. Anders Kärrberg has been promoted from the government affairs post to take Eriksson's place.