Volvo Cars Revises Sales Growth Forecast Amid Market Challenges

Swedish automaker Volvo Cars reported an increase in third-quarter operating profit today while revising its full-year sales growth expectations due to a market slowdown occurring faster than anticipated. The company, majority-owned by China's Geely, announced it is lowering its retail sales growth target for this year to a range of 7-8% from the previously stated 12-15% growth forecast in July. Volvo Cars' operating profit reached 5.8 billion Swedish crowns ($550.30 million), showing improvement from the 4.5 billion Swedish crowns reported in the same period last year. Despite the increase in operating profit, the company's profit, excluding results from joint ventures and affiliates, declined to 5.7 billion Swedish crowns from last year's 6.1 billion Swedish crowns. This adjustment in the sales outlook reflects the challenges faced by the automotive industry amid economic uncertainty and changing market conditions. Volvo's revised forecast aligns with the broader industry trend of cautious optimism, balanced by the company's latest financial performance and market realities. The reported financial figures come at a time when the automotive industry is undergoing a transformation, characterized by a growing focus on electric vehicles (EVs), as evidenced by events like the Canadian International Auto Show in Toronto on February 15, 2024, where Volvo is showcasing its EV technology. The exchange rate used in Volvo's financial reporting is 1 USD = 10.5397 Swedish crowns.