Volvo Car Group reported an operating profit of SEK1,660 million for the first half of 2015, compared to SEK968 million for the same period in 2014.
Article continues below
Revenue for the first half was SEK75,215 million, up from SEK66,982 million in the first half of 2014.
Retail sales during the first six months of 2015 were 232,284 cars, up slightly compared to 229,013 in the same period last year, driven primarily by strong demand in Europe. Sales in China were flat while sales in the United States stabilized during the period.
Volvo is investing in a global transformation as part of its long term strategic ambition to enhance its position as a global premium car maker. Driven by the complete renewal of its product range, Volvo is aiming to almost double sales to around 800,000 cars a year in the medium term.
The company started production of the new Volvo XC90, the first of its new generation of cars on its SPA platform. So far, the company has received close to 57,000 orders and started delivering the car to customers in the spring. In May, a third shift was introduced at the Torslanda plant in Sweden, creating nearly 1,500 new manufacturing jobs.
In the first half, Volvo also announced it will build a new manufacturing facility in South Carolina. Construction on the USD500m plant near Charleston will start this fall and the new facility will have initial production of around 100,000 cars per year and be completed by 2018.
Volvo Cars has taken control of its three joint venture operations in China for SEK2.2bn in order to more accurately reflect its growing presence in the world’s largest car market.
Volvo Cars now owns 50 per cent of its China joint ventures alongside Geely Holdings. These joint ventures include its car manufacturing facilities in Chengdu and Daqing, its engine manufacturing facility in Zhangjiakou and its research and development centre in Shanghai.
The move allows Volvo to fully consolidate its China joint ventures, providing a more accurate financial and operational picture of the company as it continues to expand in China. The company’s interim financial results announced today are the first to incorporate the China joint ventures.
“The incorporation of the Chinese entities is an important step towards the long term objectives to capture the growth and sourcing potential in China,†said HÃ¥kan Samuelsson, President and Chief Executive. ■