Volvo Shrugs Off Trade Worries, Predicts Record Sales

Volvo Car Corp., whose operating profit jumped 29% to a record-high 4.2 billion kronor ($471 million) in April-June, predicts it will sell a record 600,000 vehicles this year in spite of rising global trade tensions.

The company’s revenue in the first half of 2018 climbed 24% to 123 billion kronor ($13.8 billion). Operating profits rose 16% to a record 7.8 billion kronor ($875 million). Volvo sales in the U.S. jumped 40% in January-June.

CEO Hakan Samuelsson forecasts a “new period of sustainable global growth” as the company continues its production operations. Volvo will begin making S60 sedans at its new $1.1 billion factory in South Carolina next month.

But the carmaker also is reassigning production overseas to avoid 25% U.S. tariffs on cars from China. Volvo has been supplying the American market with its popular XC60 crossover model from China.

Samuelsson tells Automotive News Europe the company will now ship those models to the U.S. from Europe instead. He didn’t say what Volvo will do if President Donald Trump follows through on a threat to impose a 20% import tax on vehicles from Europe.