News Column

Volvo Posts $74 Million Loss for 2012

May 6, 2013
Volvo C30 (file photo)
Volvo C30 (file photo)

Volvo Car Corp on Friday reported a 480-million-kronor (74-million-dollar) loss for 2012, citing weaker sales in many European markets and China.

The group said it sold 421,951 cars during the year, down 6.1 per cent from 2011.

China's Zhejiang Geely Holding Group took over ownership of the Swedish carmaker in 2010 from US-based Ford Motor Co.

Volvo had reported a 1-billion-kronor net profit for 2011. Net sales in 2012 dipped 0.9 per cent to 124 billion kronor while the operational result was break-even.

A one-time gain of 590 million kronor from the sale of platform technology to Geely helped improve the 2012 results.

In China, Volvo Cars reported a sales decrease in 2012 of almost 11 per cent to 41,989 cars.

The eurozone crisis weighed on sales in Europe. They decreased 10 per cent. But sales increased slightly in the United States to about 68,000 cars. Russia and Japan were other markets where sales improved.

For 2013, the group predicted markets would grow in the US and China while Europe would remain affected by economic uncertainty.

For more coverage on the automotive industry, please see HispanicBusiness' Auto Channel

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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