Volvo six months profits up on China demand image

The Swedish automaker, now a subsidiary of China’s Zhejiang Geely Holding Group, reported first half profit was positive thanks to sales jumps in China and a stronger performance in the European region.

Gothenburg-based Volvo, actually a very small player in today’s global premium segment, is one of Sweden’s biggest exporters and employers. The company had started to gain traction during the last months of 2013 and the growth carried over to 2014. The increases in both China and Europe managed to offset a lingering slump in US sales.

“This first half result is both solid and encouraging,” said Volvo CEO Hakan Samuelsson.

The company said its operating earnings reached a total of 1.21 billion crowns ($176.5 million), swinging back from last year’s loss of 577 million for the same period. Revenues climbed to 64.8 billion crowns in the first six months, versus 56.4 billion for the January-June period in 2013.

Plans for the short-term include sales of 800,000 cars globally by 2020, nearly doubling the figures achieved today. So far, China has moved to surpass the United States as Volvo’s largest single market, thanks to double-digit growth figures. The automaker is launching this month its first model under Chinese patronage – the second-generation of the XC90 SUV.

Via Automotive News Europe