Car manufacturer Volvo saw its revenues rise last year while the number of cars sold fell. The increase in turnover was due to higher prices and favourable exchange rates. As a result, profits were lower compared to last year.
The turnover of Volvo Cars, owned by the Chinese Zhejiang Geely Holding Group since 2010, last year amounted to more than 330 billion Swedish kronor, converted to about 29 billion euros. That is an increase of 17 percent year-on-year.
On the other hand, the number of cars sold fell by 12 percent annually to over 615,000. The operating result amounted to SEK 22.3 billion. This consists largely of a substantial profit in the second quarter, partly thanks to an IPO of sister company Polestar. That company only makes electric cars.
Profits, however, lagged those of last year, falling 16 percent to almost SEK 18 billion. This was mainly due to supply problems for car parts and higher costs for raw materials and transport. Volvo CEO Jim Rowan wants to improve margins in the coming year by cutting costs. It is not yet known what measures he will take for this.