China Market Raises Volvo Cars' Second Quarter Operating Income

Stefan Jacoby, president and CEO of Volvo Cars

Geely Auto News On August 17, 2011, Volvo Cars, a subsidiary of Geely Auto, released its second-quarter financial data. Thanks to the increase in new car sales in China, Europe and North America, Volvo Cars’ operating income and profits increased substantially in the second quarter compared with the same period of last year.

According to Volvo Car official news, Earnings Before Interest and Taxes (EBIT) for the second quarter of 2011 was SEK 600 million (US$95 million), an increase of 170 million kroner compared to the same period last year; operating income was 33 billion kronor , an increase of 3.5 billion kroner compared with the same period last year.

Volvo Car sales reached 123,919 units in the second quarter of this year, which is a year-on-year increase of 26.6% from 97,884 units in the second quarter of last year. All major markets in the world have seen significant growth. Among them, the highest increase in sales in the Chinese market was 62%, compared with 43% in North America and 15.5% in Europe. In the first six months of this year, Volvo’s global sales increased by 20.3% year-on-year to 230,746 vehicles.

Stefan Jacoby, president and CEO of Volvo Cars, said that despite efforts to achieve the goal, Volvo cars have gradually returned to stable profitability. In the future, Volvo will expand its production and recruit 600 workers. However, due to the recent unpredictable performance of the global economy that makes the future market unpredictable, Volvo Cars will always be ready to respond to changes in customer demand.