Volvo celebrate global sales record

With the final report formulated, Volvo Cars have sold 340 286 vehicles globally during the first half of 2019 which amounts to a 7.3 per cent increase in comparison to the previous year. The achievement resulted in record revenue of just over R191 billion in the first six months of 2019. In comparison to the previous year, Volvo Cars also increased its market share by 30 per cent in the United States of America, China and European markets while UK and Germany increased by 32 per cent all while most of those markets saw a decline in their respective passenger car markets.

“At a time when most markets in the world see stagnating car sales, we have had strong growth in the first half. We continue to take market share in all regions where we operate, but increased pricing pressure and tariffs have decreased our operating profit. The cost measures we took earlier this year will come into effect in the second half of the year,” Håkan Samuelsson, President and Chief Executive, Volvo Cars

While the operating margin from 6.4 per cent to 4.2 per cent in the first half of 2019, Volvo Cars is implementing additional cost-saving measures intending to lower its fixed cost by just under R3 billion globally. The measures will extend in the first half of 2020 to offset the continued pressure on margins and to inspire volume growth. Expecting continued growth and demand for its latest range of vehicles, Volvo Cars are hoping to increase production capacity and sales revenue going forward. Managing Director of Volvo Car South Africa, Greg Maruszewski, confirmed that the implementation of the cost-cutting measure will have no impact on South Africa and that while the passenger and premium car market has seen a decline, Volvo Car South Africa have been growing both its volumes and market share.

“We are not cutting jobs or drastically cutting costs either. We are in an extremely fortunate position in that, while the passenger car market in South Africa is declining (it fell by 3.2% in June 2019) as is the premium market (it fell by 19% in June 2019), we are growing both our volumes and our market share. This is due to both our product range – which has been comprehensively renewed – as well as our improved customer satisfaction results which have improved our overall appeal. The Scandinavian styling, superior equipment specifications, efficient powertrains and exceptional safety features of our latest vehicles have seen them win accolades the world over; we have never had a better product line-up in the history of the company. The World Car Awards jurors commented that the Volvo SUV delivers an industry-leading level of inspired design inside and out, high-class materials throughout, class-topping drivability and segment-winning safety features. South African motorists clearly agree with these sentiments,” Greg Maruszewski, Managing Director of Volvo Car South Africa.