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Volvo credits China, Europe for first-half profitability

If everything goes to plan, Volvo might be showing the first signs of a turnaround after several years coping with old products and a staid image. The Swedish brand is imminently launching its next-gen XC90 SUV on a completely revised, modular platform and using a cutting-edge family of engines, and it has even more products to take advantage of the fresh components on the drawing board. "We are excited about the launch of the all-new XC90, which marks the beginning of the re-launch of the Volvo brand," said CEO Håkan Samuelsson in the company's announcement. In the meantime, the business is moving back to profitability and is even forecasting growth through the rest of 2014.
In Volvo's recently released financial and sales results for the first six months of the year, volume was up 9.5 percent to 299,013 cars. On top of that, operating income reached 1.21 billion Swedish krona ($175 million) after posting a loss in the same period in 2013. Net income was also improved to 535 million Swedish krona ($77.4 million), which was also a reversal from a negative last year.
With these great results, Volvo is now forecasting 10 percent sales growth worldwide by the end of the year, and the key to it is a booming market in some regions. China, home to parent company Geely, was up 34.4 percent first half of the year. It's now Volvo's biggest market in the world and helped by exclusive models like the S60L (pictured above) and S80L. "We are growing our presence in China and we expect to sell at least 80,000 cars there this year," said Samuelsson in the company's forecast.

Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.

2025 Volvo EX30 First Drive Review: Little big time

BARCELONA, Spain — Priced from $36,245, including $1,295 for destination, the new EX30 is VolvoÂ’s least-expensive car. But make no mistake, thereÂ’s nothing cheap about this subcompact electric crossover. From its solid road manners to its clever use of interior textiles, this little cutie is comfortable, competent and bursting with charm. We'll get the EX30 in Single Motor Extended Range and Twin Motor Performance variants when it goes on sale in the U.S. early next year. Both models are powered by a 69-kilowatt-hour battery pack – 64 kWh of which is usable – that can be replenished at a maximum charging rate of 153 kW. Volvo says youÂ’ll only need 27 minutes to take the EX30 from a 10% to 80% state of charge, but thatÂ’s assuming the battery is properly preconditioned, the charger youÂ’re plugged into actually works correctly, the planets are all aligned, etc. The Single MotorÂ’s, um, single motor is mounted to the rear axle, producing 268 horsepower and 253 pound-feet of torque. ThisÂ’ll get the EX30 to 60 mph in a perfectly respectable 5.1 seconds, and Volvo estimates a 275-mile driving range for this configuration – though not if youÂ’re testing that aforementioned launch time on the regular, of course. The Twin Motor Performance has the same rear drive unit, but adds a second motor to the EX30Â’s front axle for a total output of 422 hp and 400 lb-ft of torque. ThatÂ’s a whole heck of a lot of power – even for a 4,140-pound crossover – and my goodness, does this EX30 scoot. Put the EX30 Twin Motor into its Performance AWD setting, stomp the throttle and youÂ’ll hit 60 mph in 3.4 seconds. That makes the EX30 VolvoÂ’s quickest accelerating production car ever. Nifty as that is, however, after a day of driving the EX30 on winding Spanish country roads and darting through traffic in BarcelonaÂ’s busy city center, I think the Single Motor is the way to go. Remember, even the pokiest EVs still feel quick thanks to instant electric torque, and at no point does the Single Motor EX30 ever feel like it canÂ’t get out of its own way. Beyond that, though, the EX30 Single Motor is simply more fun to drive. At 3,858 pounds, the rear-drive EX30 is 282 pounds lighter than the AWD version, and all that weight comes off the front end. This makes VolvoÂ’s tiny EV feel more playful and agile while cornering, especially with the well-weighted steering – not to mention the fun-to-handle squircle wheel.