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VOLVO

Volvo under fire for Shanghai show ‘babes’

When Volvo opened their display for the press at the Auto Shanghai 2011 fair in China there were a number of women in evening dresses, high heels and immaculate make up were there to greet the gathered journalists.

Volvo under fire for Shanghai show 'babes'

It is not uncommon to see scantily clad women parading around car fairs, draping themselves over bonnets and leaning on vehicles. But so far this is something that Swedish companies like Volvo have tried to steer clear of. Until now, that is.

In the Volvo display the models moved around to assume poses around the vehicles and had their make up touched up in the unrelenting sun.

“They are our new truck-drivers,” Pär Östberg, CEO of Volvo Trucks Asia said in a an attempt at a joke with the gathered journalists.

When he didn’t get many laughs, he continued by saying that this kind of thing ‘seems popular’ in China.

At the time, Östberg didn’t want to answer questions as to why Volvo was using the models to tout trade.

Later, when news of the display was starting to reach the press, he is reported to have telephoned news agency TT to make a statement.

“I can honestly say that I was rather taken aback with how it looked. It isn’t usually like that and it shouldn’t be,” he told TT.

According to Östberg, Volvo has the same respect for women wherever the company is based worldwide.

Having models pose around the trucks severely crossed the line of what they consider appropriate.

“It’s not something we would endorse as a company,“ he said.

According to TT, Östberg claims to have looked further into the matter and found that it was the local organisers in China who have had their wires crossed. The models will not be staying in the Volvo display.

“We will remove them immediately. They don’t belong there,” Per Östberg told TT.

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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.

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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