Home » Economy » Marta Ortega, daughter of the founder of Inditex, takes the lead of the group

Marta Ortega, daughter of the founder of Inditex, takes the lead of the group

Volvo Cars suffered from the effect of semiconductor supply shortages in the third quarter, which resulted in sharply lower sales and profits, the Swedish automaker said on Tuesday.

“The supply situation has improved by entering the fourth quarter, but the shortage of semiconductors which affects the whole sector should remain a constraining factor”, indicates the group recently returned to the stock market in its report. third trimester.

Sales fell 17% in volume to 149,900 vehicles sold. But the drop in turnover was less (-7%) due to the high selling prices made possible by sustained consumer demand, Volvo explains.

Turnover fell to 60.8 billion crowns (about 6.2 billion francs). Net profit fell 31% to 2.3 billion crowns.

At the same time, the number of cars leaving Volvo factories fell by 31% during the quarter, due to supply issues.

The decline in sales was particularly visible in Europe and China, according to Volvo Cars, still majority owned by the Chinese Geely despite the listing of part of the capital on the Stockholm Stock Exchange for a few weeks.

Electric turn

Over nine months, Volvo Cars remains well oriented, with an increase in turnover of 14% to 202 billion, and a strong rebound in net profit. The latter has reached 11.9 billion since the start of the year, a five-fold increase since the first nine months of 2020 marked by the biggest economic effects of the pandemic.

In the midst of the electric shift and gaining market share, Volvo had to give up its initial target of 800,000 cars sold in 2020 because of the pandemic, and in 2021 because of the shortage of semiconductors.

The CEO of Volvo Cars, Hakan Samuelsson, however, recently judged that the manufacturer could break its production record (705,452 cars in 2019). The record is “within reach”, he said in mid-November to the specialized media Automotive News.

In the first nine months of the year, Volvo Cars sold 530,600 vehicles.

The manufacturer has been separate since 1999 from Volvo Group, also Swedish, world number 2 for heavy goods vehicles, which at the time sold it to the American Ford. Volvo Cars went under the Chinese flag in 2010.

This article was published automatically. Sources: ats / awp / afp

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