Geely'sVolvoWorld News

Geely’s Volvo Cars warns on sales as supply woes dent output


Investing.com - Financial Markets Worldwide

Please try another search

ReutersStock Markets7 minutes ago (Sep 03, 2021 04:26AM ET)


© Reuters. FILE PHOTO: An employee at a Volvo car dealer, wearing a protective mask is seen in a showroom, in Brussels, Belgium, May 28, 2020. REUTERS/Yves Herman

STOCKHOLM (Reuters) – Sweden-based automaker Volvo Car Group warned on Friday that sales volumes in the second half of 2021 could fall year-on-year after it was forced to cut production due to material shortages.

The carmaker, owned by China’s Geely Holding, said sales fell 10.6% from a year ago in August, despite strong underlying demand, and cautioned the potential decline in volumes in the second half could impact revenue and profit.

“But Volvo Cars’ outlook for the full year 2021 still remains,” it said in a statement, referring to a forecast of sales volume and revenue growth with improved profitability to pre-pandemic levels.

Volvo Cars said supplier shut-downs since mid-July – due to local efforts to limit the spread of the highly contagious Delta variant in South-East Asia – had worsened an already strained supply situation, forcing it to halt production.

A global chip shortage over the past year had already caused a major delay in manufacturing activity and forced several automakers to scale back output.

Global sales at the firm, which is considering listing on the Nasdaq Stockholm stock exchange this year, fell to 45,786 cars in August, with sales in Europe dropping 25% while they rose 3% in the United States.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

tp

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close