Mexican Media Brands
Volvo Car Swings to a Loss
Zhejiang Geely Holding Group's Volvo Car unit reported a net loss of 480 million kronor ($74 million) for the fiscal year ended March 31 compared with a profit of 1 billion kronor ($157 million) the year before.
#economics
Share
Zhejiang Geely Holding Group's Volvo Car unit reported a net loss of 480 million kronor ($74 million) for the fiscal year ended March 31 compared with a profit of 1 billion kronor ($157 million) the year before.
Volvo notes that it spent heavily on developing new vehicles and engines last year, even as the European car market contracted.
Operating income plunged to 18 million kronor ($3 million) from 2 billion kronor ($308 billion) a year earlier.
Revenue was nearly flat at 125 billion kronor ($19.2 billion). Vehicle sales fell 6% to 422,000 units as volume dropped 10% to 227,000 vehicles in Europe and 11% to 42,000 units in China.
For the current fiscal year, Volvo predicts that its operating results will again be about break-even. The company doesn't expect to break even on a net basis for another year or two.
RELATED CONTENT
-
Achieving Efficiency?
A look at on-road fuel economy changes over 92 years.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.