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2012-09-05 15:08

TOUGH COMPETITION: Volvo Cars has blamed reduced demand and stiffer competition from its rivals for a loss recorded for the first six months of 2012.

Volvo Cars has reported a 254-million kronor (about R317.5-million) loss for the first six months of 2012, citing weaker demand and tougher competition.

The automaker reported a 1.2-billion kronor (R1.5-billion) profit for the corresponding business period in 2011.

China's Zhejiang Geely Holdings took ownership of the Swedish carmaker in 2010 from US automotive giant Ford.


Volvo Cars net sales for the January-June period grew by 3.9% year-on-year to 65.3-billion kronor (R81.63-billion) with 221 309 cars delivered, a figure down 4.1% year-on-year.

In China it reported a slight increase of 1.7% to 21 378 units while the Eurozone crisis affected sales in Europe that dropped more than nine percent. US sales dipped four percent but numbers rose in Russia and Japan.

Chief executive Stefan Jacoby commented: "The economic uncertainties in most of our markets will remain for the rest of the year and competition is stiff."

Volvo Cars' five main markets so far in 2012 were the US, Sweden, China, Germany and Britain.

Read more on:    sweden  |  results  |  cars  |  volvo

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