2003 Volvo C70 Convertible 2-door 2.3l on 2040-cars

Auto blog

Volvo Cars sees flat or lower retail sales this year

STOCKHOLM — Volvo Cars flagged a potential dip in retail sales this year after posting higher second-quarter profits. Supply problems, above all a global shortage of semiconductors, have squeezed output and retail sales in recent quarters, but Volvo said it was seeing a "marked improvement" in the stabilization of its supply chain. The Sweden-based carmaker said on Wednesday it expected full year retail deliveries to be lower or on par with 2021, while wholesale volumes will increase. "However, due to the time lag between production and retail deliveries, those improvements are not expected to result in an increase in retail sales during the calendar year," the company said. Volvo Chief Executive Jim Rowan said the company would "keep an eye on" consumer sentiment, not least due to higher inflation. "But right now demand is very strong," he said. Volvo's quarterly operating profit rose to 10.8 billion Swedish crowns ($1.06 billion) from 4.8 billion a year ago as accounting effects from the listing of high-performance automaker Polestar gave a boost. Operating earnings for the core business at Volvo Cars, majority owned by China's Geely Holding, reached 4.6 billion in the quarter. "Volvo reported a solid set of Q2 results in the light of multiple hurdles including semiconductor constraints and impact of Chinese lockdowns on demand," investment bank JPMorgan said in a note. Volvo has been a strong performer in recent years and recorded 2021 earnings that surpassed pre-pandemic levels. 

Polestar gets $1.6 billion boost from Volvo, other big stakeholder

Polestar said on Thursday it had secured $1.6 billion in financing from its two main shareholders to help it deliver its growth plans amid volatile markets. Volvo, which co-founded the brand with China's Geely in 2017, said it would provide an $800 million loan to the firm. Its other major shareholder, PSD Investment, will provide the same amount through "direct and indirect financial and liquidity support," Polestar said. Volvo, which owns just over 48% in Polestar, said its loan included options for Volvo to convert some of its loans to equity in a potential future equity raising by Polestar. "We welcome the continued support from our major shareholders at a time when the capital markets are volatile and unpredictable," Polestar CEO Thomas Ingenlath said in a statement. The Sweden-based carmaker said the funding, alongside previously secured resources, would provide the company with sufficient funds through 2023. In June, Polestar was listed on the Nasdaq through a merger with a special purpose acquisition company (SPAC). Volvo, like other major carmakers, has in recent years invested heavily in making its own electric vehicles and has also said it was committed to supporting Polestar. Volvo aims to sell only fully electric cars by 2030, while Polestar has a goal to launch three more cars by 2026. In February, Volvo formed a joint venture with battery manufacturer Northvolt to build a battery plant in Gothenburg which would produce battery cells specifically for electric Volvo and Polestar cars. However, carmakers and suppliers are struggling as costly investments in an electric future coincide with rampant inflation and soaring energy prices. Polestar's third quarter results are due on Nov. 11 Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2024 Polestar 3 revealed

Volvo won't entirely give up on sedans and station wagons

Volvo, like an overwhelming majority of its peers and rivals, sells more SUVs and crossovers than sedans and station wagons. It confirmed plans to pivot away from low-riding models in 2021, but it stressed that it's not ready to throw in the towel in either segment quite yet. "Yes, the [V and S lines] will be replaced with something even more attractive to customers," affirmed company boss Hakan Samuelsson in an interview with British magazine Autocar. His comments come as a relief for Volvo wagon fans around the world, given that in 2021 he had said that the company needs "to move [on] from wagons and sedans." There's a catch, though: Future V and S models will look quite different than today's. Samuelsson (who will step down from his position in March 2022) acknowledged that Volvo needs lower-riding cars but noted that their design will evolve and become "maybe a little less square." It's not just about style, either. "Cars will be less boxy in the future, when we need to have lower air resistance. You could call it coupe-ish. We talk a lot about range in electric cars, but I think we will start looking at energy efficiency, and of course air resistance will be very central to that," he said. It helps that sleeker designs help keep buyers interested in sedans. Volvo's S90 and V90 were introduced and 2015 and 2016, respectively, so they're expected to be replaced in the not-too-distant future. One point that's still up in the air is what they'll be called. The Swedish company is preparing to ditch its alphanumerical naming system in order to give its cars an actual name, so both nameplates will die with the current-generation models. We'll have a better idea of what the future has in store when the XC90's replacement arrives later in 2022 with a new name, a new architecture, and a large serving of new technology. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.