Volvo Expects Flat Sales in 2013 image

Volvo said it expects flat sales in 2013, but it doesn’t plan to cut jobs.

Volvo Cars Chief Executive Hakan Samuelsson said in an interview that in 2013 it expects sales of 400,000 to 410,000 units, at the 2012 level or slightly below. The company sold 450,000 vehicles in 2011, and although it expects flat sales next year it doesn’t give up its plan to reach 800,000 vehicles by 2020.

“Yes, we are expecting something in that order of magnitude. That is the level where we see the market bottoming out,” said Hakan Samuelsson.

The drop in demand forced the automaker to cut jobs and production at its main plants in Sweden and Ghent, Belgium, to be able to make up for the loss in Europe and China. Mr. Samuelsson said that although measures to reduce costs for white-collar are being taken into consideration, the company does not plan to make further job cuts. He added that Volvo has prepared several savings measures that will help the automaker adjust to the soft market demand.

“We have now basically let go all temporary employees in Sweden and in Belgium there are only a few left,” he said.