Geely has done marvels resurrecting the Swedish brand Volvo from its ashes – unlike NEVS with its local market Saab – and the profits are being reaped – especially thanks to the advances in China and Europe.
The Volvo Car Group announced it was keeping unchanged its forecast for the full year sales level even as the Chinese market – the largest in the world – has been slowing down lately. The company has seen a strong increase in demand at home in Europe that propelled it to a profit increase over the first six months of 71 percent. Still, there are numerous woes when dealing with China, where the auto market has slowed because of a weakening economy and recent stock market turmoil sending numerous outlooks from other carmakers in the rubble. Chief Executive Hakan Samuelsson said for Reuters his goal of taking sales this year close to half a million units this year was not jeopardized as the European turnaround and improvements on the US market would compensate the ailing Chinese market. “We have Europe which is currently in strong growth and we have the U.S., which is going from a problem situation into growth,” the CEO commented. “That, I think, shows that a normalization in China is something we can live with.”
The Swedish automaker was purchased by China’s Zhejiang Geely Holding Group Co. from Ford back in 2010 and now posted first-half operating earnings that jumped to 1.66 billion Swedish crowns ($194.66 million) from 968 million during the same period last year. The company has been shoring its investments of billions of dollars into new models with the expected surge in China but also needs increases around the world to reach its mid-term threshold of selling 800,000 vehicles by 2020.