Volvo Cars expected to post major losses

Volvo Cars, owned by the Chinese auto maker Geely, is expected to post heavy losses in 2012 in China where sales were weaker than expected while investments were substantial, daily Svenska Dagbladet (SvD) reported on Thursday.

Volvo Cars expected to post major losses

The paper, citing “well informed sources”, said that Volvo Cars would report losses of two to four billion kronor ($307 to $615 million) in China for the year.

Volvo Cars was acquired by Geely in 2010, but the Swedish brand has seen its market share decline and profits dwindle since then while Geely, which sells the cheaper brands Geely, Gleagle, Emgrand and Englon, remains in good health.

Volvo Cars has been struggling in western Europe, its biggest market, and has had a hard time breaking into China, the world’s biggest auto market.

In March, Volvo said it had discovered problems with its sales figures in China, implying that they had been exaggerated. Officially, the company sold 11 percent fewer cars in 2012 than in 2011.

Volvo Cars does not announce in advance the publication date for its earnings reports.

In the first quarter of 2013, it sold 8.0 percent fewer cars than in 2012, but reported a rise of 27 percent in China.

AFP/The Local/og

Follow The Local on Twitter

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


China derides Copenhagen democracy meet as ‘political farce’

China on Tuesday blasted a democracy conference in Copenhagen attended by Taiwan's president and a Hong Kong activist alongside Danish government officials this week, qualifying it a "political farce".

China derides Copenhagen democracy meet as 'political farce'
Demonstrators gathered outside the Copenhagen Democracy Summit on Tuesday. Photo: Emil Helms/Ritzau Scanpix

The Copenhagen Democracy Summit was held Monday and Tuesday in the Danish capital and organised by the Alliance of Democracies, an organisation targeted by Beijing sanctions in March and founded by former NATO boss Anders Fogh Rasmussen.

In addition to Taiwan’s President Tsai Ing-wen and Hong Kong democracy activist Nathan Law, Danish Foreign Minister Jeppe Kofod also participated in the forum by video link, which Beijing said violated “the one-China principle.”

“This summit is a political farce,” the Chinese embassy in Denmark wrote in a statement published on Tuesday. “Inviting those who advocate Taiwan and Hong Kong ‘independence’ to the meeting violates the one-China principle and interferes in China’s internal affairs,” it said.

“Some hypocritical western politicians are good at meddling in other countries’ internal affairs and creating divisions and confrontation in the name of ‘democracy’ and ‘freedom’. They are bound to fail,” it added.

At the conference on Monday, Kofod said it was “deplorable” that Beijing had imposed sanctions on 10 European individuals and organisations in response to EU sanctions on Xinjiang officials over their actions against the Uyghur Muslim minority.

Like most countries, Denmark applies the one-China principle — under which Beijing bars other countries from having simultaneous diplomatic relations with Taipei — though it does maintain relations with Taiwan.

Cut off politically from the rest of China since the end of the Chinese Civil War in 1949, the territory is self-governing but is not recognised by
the United Nations.

Beijing considers Taiwan a rebel province that will one day return under its control, by force if necessary.

China’s sabre-rattling has increased considerably over the past year, with fighter jets and nuclear-capable bombers breaching Taiwan’s air defence zone on a near-daily basis.

“Our government is fully aware of the threats to regional security, and is actively enhancing our national defence capabilities to protect our
democracy,” Tsai told the conference in a video address on Monday. US President Joe Biden is expected to present his China strategy soon, as
calls mount for him to publicly commit to defending Taiwan militarily in the event of a Chinese attack.