Swedish automaker Volvo was not spared from ill effects brought by the COVID-19 pandemic as it also rode on the downtrend train affecting the automotive industry around the globe.
Volvo Cars recorded a 14.1 percent loss of revenue, earning only SEK 111.8 billion (more than P621.16 billion) during the first six months of the year.
Despite the massive loss, the global brand—which is under the ownership of the Zhejiang Geely Holding since 2010—is still optimistic of a rebound come second half of the year, as markets are now trying to stabilize.
“The downturn we saw in the first half is a temporary one,” chief executive Håkan Samuelsson said. “We expect to see a strong recovery in the second half of the year and our Recharge range of electrified cars puts us in a strong position to meet the emerging trends we are seeing.”
In terms of sales volume, Volvo Cars was down by 20.8 percent with only 269,962 units rolled out for the January-June period, as key markets implemented lockdowns and other restrictions, thereby affected economic activity for the company.
Volvo Cars suspended manufacturing facilities and implemented work time reductions with the support of government programs. But with the quick implementation of various safety measures, the company safely welcomed back employees to work in a very short time. The Torslanda plant in Sweden lost only 15 days of production during the period.
“This pandemic has strengthened our confidence that our strategic ambitions are the right ones and that an accelerated transformation of our business will lead to long-term growth,” Samuelsson said. “We will continue to focus on and invest in electrification, online sales and connectivity.”
“If the market recovers as we expect, we anticipate sales volumes to return to the levels we saw in the second half of 2019 and it is our ambition return to similar profit levels and cash flow.”
Volvo Cars is said to be the sole car maker to offer a plug-in hybrid variant on every model in its lineup. The brand is also set to start producing the XC40 P8 Recharge—its first fully electric model—later this year.
To note, Volvo Philippines has the T8 Plug-in Hybrid engine fitted in three of its models, namely the Volvo XC60 compact crossover, the Volvo S90 estate, and the midsize premium SUV Volvo XC90.
Photos from Volvo