Volvo announced that the drop in sales continued in March, with a steep fall in the US, although buyers pushed monthly demand to the highest level in five years.
Volvo, which is owned by China’s Zhejiang Geely Holding Group, reported on Friday, April 5th, global sales down 10% for March and 7.6% for the first quarter compared with the same periods last year. The only market where the automaker reached growth was China, up 20%, thanks to its 60-Series sedan. Although economy and demand in the US are soaring, the automaker performed poorly in this market.
Last month automakers reported their strongest results in the past five years, which drove industry sales up 7.3% to 1.45 million vehicles. Volvo’s sales were affected by the XC90 SUV, which is set for a redesign, with sales down 36%, and the absence of a small sedan to challenge the Toyota Corolla, the VW Jetta and the Honda Civic.
Last month. Volvo sold 40,576 vehicles globally and 98,817 vehicles during the first quarter, with Europe sales down 13% and 11% in Sweden, its home market. In February the automaker announced its plans to form a joint venture with Geely, part of its strategy to become a tougher competitor in the small-car market.