After launching a comprehensive savings package last year, Volvo Cars now reports an operating profit of SEK 1.6 billion. This was slightly worse than the previous year, but at the same time significantly above market expectations, which averaged SEK 990 million.
Given the circumstances, Håkan Samuelsson is also satisfied:
There are many factors that have been difficult to influence and that are negative, he says, mentioning, among other things, the customs duties in the United States.
We have remained at the same profitability level as last year, around 2.2 percent. If you look at competitors, it is currently not as bad as it sounds.
Has been under pressure
The global automotive industry has been under pressure for some time due to the challenges in the global economy. However, the recent increase in oil prices could be of some benefit to Volvo Cars with its focus on electric cars, Samuelsson points out. The company can already see an effect, he says.
Normally people say that higher fuel prices are not good for the car industry, but if you sell electric cars, you suddenly have a new pattern.
The share of pure electric cars (BEVs) of total sales has increased by 24 percent during the quarter. This is the highest share among competitors in the premium segment, according to Volvo Cars.
I think part of it is because it is significantly cheaper to drive an electric car than a gasoline car.
Weak American market
However, the company also states that although the market in Europe is stable, it sees a continued challenging situation in the US and China. In the US in particular, there is a decrease in demand for electric cars after subsidies were removed.
We just have to adapt to that and maybe prioritize selling our electric cars in Europe for now, where there is big demand. So I believe in steering those electric cars from the US to Europe, says Samuelsson.
