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Geely’s Volvo Cars Predicts 2012 Operating Loss
CEO Hakan Samuelsson tells reporters it will be "very tough" for Volvo Car Group to make a profit before interest and taxes this year because of sagging sales and heavy investment.
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CEO Hakan Samuelsson tells reporters it will be "very tough" for Volvo Car Group to make a profit before interest and taxes this year because of sagging sales and heavy investment.
The company, which is owned by Zhejiang Geely Holding Group, posted operating earnings of 239 million kronor ($36 million) in the first six months of 2012, down 84% from a year earlier.
Volvo's sales in Europe are weaker now than in the first half of this year, Samuelson notes. He adds that there are "no positive signals." Samuelsson says he is especially dissatisfied with Volvo's flat sales in China.
Financing from the state-owned China Development Bank that Volvo has been awaiting since April will be made available soon, according to Samuelsson. He declines to disclose the amount of the loan, which will help finance the construction of Chinese factories and development of fuel-efficient vehicles.
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