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SAAB

Volvo in top gear as Saab stuck in reverse

Sweden's two major car manufacturers, Volvo and Saab, are experiencing starkly contrasting fortunes in European markets, new sales statistics from the European sector organisation Acea show.

Published: 16 April 2010 16:08 CEST

Volvo sales climbed by 30.3 percent in Europe in March while the market as a whole increased by 11.1 percent.

Saab’s outlook darkened however with March figures showing a collapse of 54.7 percent on already very low March 2009 figures.

Saab Automobile distinguished itself only as the car brand in Europe which declined the most.

The Acea statistics show a clear indication that sales statistics are rebounding, for many brands. Among those falling are several Japanese brands, including Toyota which fell 13.7 percent in March 2010 in comparison with the corresponding period of last year.

Volvo sold 27,021 cars in March and increased its market share from 1.4 percent to 1.6 percent.

Saab sold a mere 2,049 cars in March, less than half the 4,521 sold in the corresponding period of last year and the firm has now declined to a market share of only 0.1 percent.

Ford increased sales by 18.1 percent to 171,122 cars in March in comparison with March 2009 and now enjoy a market share of 10.2 percent in Europe. This figure is the same as for Volkswagen, dropping from 10.4 percent despite a sales hike of 9.3 percent during the month. VW just nudged ahead of Ford by 482 cars to 171,604 and therefore retained top spot.

Volkswagen remained dominant even over the full first quarter with 405,254 cars sold, in comparison with Ford’s 349,233 cars.

Volvo sold 59,863 cars over the period, 21 percent more than the same period last year. Saab sold 3,972 cars, down 57.4 percent in comparison with January-March 2009.

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VOLVO

Sweden’s Volvo regains strength after pandemic puts brakes on earnings

Swedish truck maker Volvo Group was hit by a sharp drop in earnings due to the coronavirus pandemic, but business rebounded at the end of the year.

Published: 3 February 2021 12:21 CET
Sweden's Volvo regains strength after pandemic puts brakes on earnings
Volvo Group CEO Martin Lundstedt. Photo: Adam Ihse/TT

In 2020, the group saw “dramatic fluctuations in demand” due to the Covid-19 pandemic, chief executive Martin Lundstedt said in a statement.

For 2021, Volvo raised its sales forecasts in its trucks division – its core business – in Europe, North America and Brazil.

However, it said it also expected “production disturbances and increased costs” due to a “strained” supply chain, noting a global shortage of semiconductors across industries.

The truck making sector is particularly sensitive to the global economic situation and is usually hard hit during crises.

In March, as the pandemic took hold around the world, Volvo suspended operations at most of its sites in 18 countries and halted production at Renault Trucks, which it owns, in Belgium and France.

Operations gradually resumed mid-year, but not enough to compensate for the drop in earnings.

With annual sales down 22 percent to 338 billion kronor (33.4 billion euros, $40 billion), the group posted a 46 percent plunge in net profit to 19.3 billion kronor (1.9 billion euros).

Operating margin fell from 11.5 to 8.1 percent.

However, the group did manage to cut costs by 20 percent.

“We have significantly improved our volume and cost flexibility, which were crucial factors behind our earnings resilience in 2020,” the group said.

Volvo's business regained strength in the second half of the year.

“Customer usage of trucks and machines increased when the Covid-19 restrictions were eased during the summer and this development continued during both the third and fourth quarters,” it said.

“Both the transport activity and the construction business are back at levels on par with the prior year in most markets.”

For the fourth quarter alone, the company reported a 38-percent rise in net profit from a year earlier.

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