Volvo Car Group, a subsidiary of Geely, has reported an operating profit of SEK1,660m for the first half of 2015, compared to SEK968m for the same period in 2014. Revenue for the first half was SEK75,215m, up from SEK66,982m in the first half of 2014.
Retail sales during the first six months of 2015 were 232,284 cars, up slightly compared to 229,013 in the same period last year, driven primarily by strong demand in Europe. Sales in China were flat while sales in the United States stabilised during the period, Volvo said.
“It has been a good first half of the year, with an improved financial performance,” said Håkan Samuelsson, Volvo Car Group President and Chief Executive. “We have been implementing a transformation plan since 2010 and this financial result demonstrates that we continue to be on the right track. For the full year, we expect a substantial increase in profits.”
Volvo says it is investing in a global transformation as part of its long term strategic ambition to enhance its position as a global premium car maker. It maintains that a complete renewal of its product range will enable it to almost double sales to around 800,000 cars a year in the medium-term.
First half highlights for the group include the start of production of the new Volvo XC90, the first of its new generation of cars on its SPA platform. So far, Volvo says it has received close to 57,000 orders and started delivering the car to customers in the spring. In May, a third shift was introduced at the Torslanda plant in Sweden, creating nearly 1,500 new manufacturing jobs.
Volvo has also announced it will build a new manufacturing facility in South Carolina. Construction on the USD500m plant near Charleston will start later this year and the new facility will have initial production of around 100,000 cars per year and be completed by 2018, Volvo says.