Volvo Cars reports quarterly profit decline

Volvo Cars, owned by Giri, has released its interim financial report for the third quarter of 2021. This shows a decline in earnings and profits as a sector-wide shortage of critical semiconductor components curbed sales.

Between July and September, the company achieved revenue of SEK 60.8 billion, down 7% from the same period last year. Operating profit for the quarter was SEK 3.3 billion, compared with SEK 4.6 billion in the year-ago quarter.

According to Volvo, third-quarter sales were down 17% compared to the same period in 2020. Rolling sales reached approximately 741,200 units in 12 months.

Volvo’s CEO also warned that chip shortages would continue.

Håkan Samuelson, Chief Executive Officer of Volvo Cars, said: .. “Supply conditions improved in the fourth quarter, but we expect the industry-wide semiconductor shortage to continue to be a restraining factor.”

In October, Volvo Cars began production of its second fully electric model, the Volvo C40 Recharge. According to the company, the annual production capacity of fully electric vehicles at manufacturing plants in Ghent, Belgium and Taizhou (formerly Road Bridge) in China will be increased from the current approximately 15,000 units to at least 150,000 units after the summer of 2022.

According to GlobalData’s analysis, the underlying capacity constraints require the company to add factories in Europe.

Volvo Cars reports quarterly profit decline

Source link Volvo Cars reports quarterly profit decline

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