The last month of the quarter turned to a weak sales growth for the car manufacturer. Håkan Samuelsson mentions, among other things, that towards the end of the quarter they once again reached full capacity for the smaller electric car EX30, whose production was moved from China to Belgium.
We have started to come back.
2,000 had to leave
The car manufacturer has launched a savings program of 18 billion kronor during the year and has laid off around 1,000 employees in Sweden. Also, around 1,000 temporary employees and consultants have had to leave. The savings program continues during the fourth quarter.
But when it comes to staff reductions, we are clear.
No prospects
Volvo Cars provides no financial prospects for the full year 2025 or next year, as they consider that there are "external challenges and increased uncertainty". Håkan Samuelsson, on the other hand, says that he believes the market will be fairly unchanged next year.
I would like to say a fairly stable total market and therefore we must work with the factors we can control.
The company is also working to turn to positive cash flow.
We have invested very heavily for many years and now we must enter a phase where we see clearly positive cash flow coming in.
The car manufacturer increases the result to 6.4 billion kronor, despite the fact that car sales fell by 7 percent, compared to the same quarter last year, to 160,500 cars. The turnover during the quarter fell to 86.4 billion kronor, from 92.8 billion a year earlier. The EBIT margin, on the other hand, rose to 7.4 percent compared to last year's 6.2 percent. The sales share of electrified cars fell to 45 percent compared to last year's 48 percent.
With today's strong price increase, Volvo Cars' share has turned to a plus for the year. Since the listing in 2021, the share is still down by over 40 percent.
