Volvo Expects More Tough Time in the European Market image

After Volvo sales dropped 15% in Europe in the first quarter, CEO Hakan Samuelsson said he expects more tough time in the region.

Volvo CEO Hakan Samuelsson said during an interview with Automotive News Europe that the company sees low volume in Europe for 2013 and no signs of improvement. Although growth in Europe is not to be seen, other markets, such as the US and China, will balance the loss on the Old Continent. He added that Volvo is not willing to take part in the incentive and rebate battle between automakers in Europe.

He said that Volvo’s sales in the US have slightly dropped due to the phasing out of several old models and the changeover made to the V40. In the fall Volvo will introduce six new models in the States and the company relies on the XC60 to bring a slight increase in sales by the end of the year.

In China Volvo sold 13,780 units during the first quarter and Samuelsson said the automaker expects sales to increase between 7% and 8% this year, with the premium segment surpassing the core market. He added that this year Volvo will build around 200,000 vehicles in China, but, if there is demand, the automaker will make exports only to other Asian markets due to increase transportation costs.

Source: Automotive News Europe