The car manufacturer reports an operating profit of 5.8 billion kronor for the third quarter of the year. During the corresponding quarter last year, the profit was 4.5 billion.
The market's expectations were around an operating profit of approximately 5.1 billion kronor.
We see more challenges in the short term from a macroeconomic perspective, where we see an underlying decline in demand, says Johan Ekdahl.
But in a turbulent world, I think we show strength, that we have an attractive portfolio. We take market shares and make a stable result.
Declining demand
What challenges do you see?
For a fairly long time, we have seen an increasing macroeconomic challenge; it's the interest rate situation, inflation, and consumers' confidence when it comes to making larger investments, a car is a large investment.
For 2024, they are adjusting their sales forecast down to an increase of 7-8 percent from previously 12-15 percent. But with interest rates on the way down, they see brighter times ahead.
But in the short term, we see a decline in demand.
The electric car market is currently facing headwinds, but that does not worry Volvo Cars.
Looking at our sales, you can see that we are increasing our share of electric cars quite a lot compared to last year, and for electrified cars, electric cars, and hybrids, it's almost half of our global sales, says Ekdahl.
He emphasizes that what will drive growth in the car industry in the coming years is electric cars.
That's where there is strong growth.
"More resilient"
Earlier in October, the EU voted in favor of permanent tariffs on Chinese electric cars. Sweden hopes to find a solution for Volvo Cars' part, and the commission has opened up for further discussions.
The company does not want to comment on the issue at present. But they do not believe that the tariffs will have a long-term impact.
We will be able to handle that issue. It will involve some challenges in the short term, but it's temporary, and we see that we have a strong global manufacturing system, which means that we are probably more resilient than some others.
Volvo Cars is listed on the stock exchange, but is controlled by Chinese Zhejiang Geely Holding and is, among other things, one of the larger owners of the electric car manufacturer Polestar.
