Like other car manufacturers, the Swedish car manufacturer Volvo made up ground in the second half of the year. In this way, Volvo was able to convert the loss that had accrued in the first half of the year due to the corona crisis into an annual profit.
For the year as a whole, the company brought in a profit of 7.8 billion Swedish kronor (around 770 million euros), around 19 percent less than a year earlier, as Volvo announced in Gothenburg on Thursday.
Sales shrank by a good 4 percent to almost 263 billion crowns because Volvo sold 661,713 cars, around 6 percent less. Earnings before interest and taxes fell 40 percent to 8.5 billion crowns. The second half of the year was, however, the strongest half year in sales in Volvo’s history, it said.
Growth in sales and revenue expected
CEO Hakan Samuelsson expects sales and turnover to grow in 2021. Assuming that the markets normalize further, management expects profitability to return to pre-crisis levels.
The car manufacturer has been separated from the Swedish commercial vehicle manufacturer Volvo AB for a long time and belongs to the Chinese car company Geely, which also has a significant stake in Volvo AB.