The Swedish carmaker Volvo Cars has recorded a sharp profit slump in its second quarter despite clearly rising Volvo sales figures. On balance, the car maker owned by the Chinese carmaker Geely earned with 1.4 billion Swedish kroner (132 million euros) only about half as much as a year earlier, as the company announced on Thursday in Gothenburg.
Costs should be reduced
Volvo boss Hakan Samuelsson spoke of increased price pressure and new duties, which would have lowered the operating result. Samuelsson wants to trim the costs even more than before. In addition to 750 places already deleted, Volvo plans to streamline the procurement of services, thereby reducing fixed costs by around one billion crowns. For 2020, further measures are planned.
Volco car sales increased
Volvo has increased sales in the second quarter by 5.4 percent to 179 506 cars, especially in Germany, the company had been successful, said Samuelsson. However, sales climbed only slightly by 1.7 percent to 67.2 billion crowns (6.4 billion euros). Earnings before interest and taxes fell nearly 40 percent to 2.6 billion kroner.
The car manufacturer Volvo Cars has been separated from the Swedish commercial vehicle manufacturer Volvo AB for many years. Volvo Cars belongs to the Chinese auto giant Geely, which also holds around 8 percent of the capital and 16 percent of the voting rights in Volvo AB.