Volvo may be not be shifting as many cars as it once did in the US at the moment but its fortunes are markedly different elsewhere as the Swedish firm experiences an upward trend in sales due to demand fueled by China and Europe.
Earnings were up by $176.5 million, not much these days but a lot better than the $63 million euro loss it suffered this time last year.
Previous owners Ford cut its losses and sold Volvo in 2010 to Chinese car maker Zhejiang Geely Holding Group. Demand from Chinese consumers has become a key player in returning Volvo to rude health, overtaking the United States market.
Vehicle sales for the first seven months rose by 9 percent and company bosses expect the trend to continue at this level well into next year.
Volvo expects steady growth in China with volume sales currently at around 80,000 units per year. US sales have fallen due to under-investment in new models and a model range half of what it used to be just 10 years ago.
Volvo’s strategy is to keep US Sales at current levels and hope a raft of new models, currently in development stages, will boost sales in the next 3 years.
The aging XC90 will be replaced later this year with an all new, from the ground up, design. The Swedish based company is aiming to double global sales to 800,000 units per year by 2020.