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Volvo uncovers widespread cheating by its Chinese dealers

According to a report in Reuters, the findings of an internal investigation conducted by Geely-owned Volvo is that its Chinese dealers vastly overreported their sales numbers in 2011, then even more vastly underreported their 2012 sales figures. About "half the dealers" out of the 151 total outlets gamed the system in order to get incentives for reaching volume objectives, falsely recording about 7,000 more units sold than was actually the case. Instead of 47,140 cars sold in China in 2011, the real number should have been 39,871.
Volvo corporate books a sale once it ships a car to a dealer, so that meant there were 7,000 more cars in inventory than there should have been. To restore the balance, the dealers underreported their 2012 sales while they unloaded those extra cars since, naturally, they couldn't claim the sale again. That made it look like sales declined by 11 percent in 2012, even though they actually increased year-on-year. The adjusted sales number for 2012 totalled 45,896.
Volvo has met with its dealers and told them to stop the deceitful practice. The discrepancies weren't so great that the company plans to restate its historic numbers, but from now on, it apparently plans to occasionally check inventory to make sure the numbers match and that it has a true picture of how individual models are selling.

Limited-edition Volvo S60 Polestar priced at $59,300*, V60 at $60,900*

You saw their US reveal at this year's Chicago Auto Show and read our driving impressions from Sweden. Now, if you act fast, you can actually own one of the very limited 2015.5 Volvo S60 and V60 Polestar models coming to the United States. The order page for these slick Swedes is now online, but the slots are filling up about as quickly as these cars accelerate.
Volvo plans to build a combined 750 of these Polestar models for the world, but the US is being allocated just 120 of them. Prices start at $59,300 for the S60 or $60,900 for the V60 (*plus a $925 destination charge). The only option is color - either Black Sapphire or Rebel Blue. If rarity is playing a part in your decision, you might want to pick the S60. According to the reservation site, only 20 of the sedans in each color are making it over here; the rest are V60s.
As the top versions of their respective models, both Polestars are packed with features. They share a turbocharged, 3.0-liter inline six-cylinder engine rated at 345 horsepower and 369 pound-feet of torque with a six-speed automatic transmission and a rear-biased all-wheel-drive system. Acceleration to 60 miles per hour is claimed to take 4.7 seconds for the S60 or a tenth more for the V60 with a top speed of 155 mph. They are about more than just a hotter engine, though, with Öhlins shocks, six-piston brake calipers and 20-inch Polestar wheels with Michelin Pilot Super Sport tires. Check out the gallery for the full, official specs, and get to the order page soon, if you decide you need one of these limited Swedish sportsters.

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.