Prior to today's report, Volvo Cars announced that the bestseller XC60 will start being manufactured in the USA for the American market. Håkan Samuelsson says that the relocation of production naturally means a reduction for the factory in Torslanda, Gothenburg.
But then you have to remember that if we hadn't done it, we would have reduced anyway, because it's impossible to sell those cars with such high tariffs.
Furthermore, he says that as production is relocated, the car manufacturer will start producing new car models in Torslanda.
There's no reason at all to be worried about our employees here in Gothenburg, our factory will continue at about the same level as we are today.
"Not just tariffs"
According to Håkan Samuelsson, the relocation of production would probably have taken place even if it weren't for the tariffs, since the company wants to move production closer to consumers. At the same time, he sees a glimmer of hope for the tariff negotiations between Europe and the USA.
Some form of positive feeling, I do have, that it should get better.
The company announced earlier this year that 3,000 jobs will disappear globally. The car manufacturer's CEO Håkan Samuelsson says that so far, 1,100 employees have left the company, but that the cost savings will take effect gradually.
The end of the year will see more on the cost side.
Heavy loss after write-down
Volvo Cars reports an operating loss of 10 billion kronor for the second quarter of the year. This can be compared to an operating result of 8.0 billion during the corresponding quarter a year earlier. The loss comes after a one-time write-down of 11.4 billion kronor, which weighs on the quarterly figures. Revenue fell to 93.5 billion, compared to 101.5 billion a year earlier. Expected was a revenue of 88.25 billion kronor.
Volvo Cars sold a total of 181,600 cars during the second quarter, which is a decrease of 12 percent compared to the previous year. Even electric car sales fell during the last quarter.
Then we need new car models that are coming now, already we see an XC70 in China which is a very long-range hybrid, so you can call it more of an electric car. Then next year we have the EX60 which will be made in Torslanda. In Ghent, we're making the small 30 model which is ready to really start selling after we've moved it from China.
