Volvo Cars has become another victim of the trade war

Volvo Cars has become another victim of the trade war

February 8, 2019 0 By autotimesnews

The tense economic environment forced Volvo to postpone its listing plans. The confrontation between the two countries led to additional costs of the Swedish brand, as well as the Chinese concern.

According to the results of 2018, Volvo increased its operating profit by 0.9% compared to the figures for 2017. Moreover, revenue grew by 21%, and sales of new cars by 12.4%. But this did not allow the company to quietly move the trade confrontation between the USA and China. According to information from the international analytical agency Reuters, the company’s marginality has decreased from 6.7% to 5.6%.

Volvo Car CEO Hakan Samuelsson noted that this year the brand would have to cut costs in order to compensate for the fall in margins, which should continue this year. At the moment, Samuelsson fears that the US will introduce duties for European cars. This will seriously affect the company’s sales.

It is worth noting that as part of the large Chinese concern Geely, Volvo has a large airbag. Thanks to the new board, the company is actively developing in the premium segment.