Volvo Car Group’s operating profit for first half year shrinks from SEK 1.529 billion in 2011 to just SEK 239 million in 2012.
Volvo lost market shares on all markets but the Russian. Biggest loss in market share was in USA where its share went down from 0.57 to 0.47. Biggest decline in numbers of vehicles sold was in Europe were sale plunges from 135,608 vehicles to 123,279 vehicles, a decline of 9.1 percent.
Despite the result Volvo Car group still plans to almost double their sale. Beneath the headline “Roadmap to 800,000 cars” the company tells that the annual sales volume of their new V40 are expected to reach around 90,000 cars over the lifecycle, of which around 90 per cent in Europe.
Volvo Car Group has their new V40 on the front of their half Year report.
Secondly Volvo Car Group has high expectations to the Volvo V60 Plugin Hybrid of which production began November 2012. The new Volvo V40 and the V60 Plug-in Hybrid will be instrumental to improve sales and during 2013 the majority of the model range will benefit from a major update.
Volvo’s long term goal in China is to increase sales to 200,000 cars per year. In order to achieve this, an industrial plan has been developed. It contains two assembly plants, one in Chengdu in Sichuan province and one in Daqing in Heilongjiang province. An additional engine plant is planned to be located in Zhangjiakou in the province of Heibei.