Volvo’s earnings report for the first time in the third quarter

Although Volvo's sales in China in September achieved a 111% surge and refreshed its monthly sales record in China, it is still difficult to offset the profitability of the third quarter of this year.

Recently, Volvo Cars announced its third quarter financial report. In the third quarter of this year, the company had retail sales of 103,119 units, an increase of 22,396 units year-on-year, with a growth rate of 27.7%. Operating income was 26.9 billion Swedish kronor (about 4.064 billion U.S. dollars), an increase of 1.5 billion Swedish kroner over the same period last year, an increase of nearly 6%.

However, in the third quarter, Volvo increased its investment in the research and development of new technologies for automobiles, resulting in a loss of 763 million Swedish kronor (approximately 116 million U.S. dollars) after deducting cost expenses, compared with 748 million in EBIT in the third quarter of last year. Swedish Krona (about $113 million).

Stephen Jacobs, President and Chief Executive Officer of Volvo Cars, said that Volvo’s loss in the third quarter was mainly because Volvo Cars was actively planning and investing in the future, Volvo Cars’ SPA in the scalable platform architecture (vehicle technology platform), VEA The environmental protection framework (engine technology platform) invests a lot of money in research and development."

In the first nine months of this year, Volvo’s global sales totaled 333,865 units, a year-on-year increase of 22.5%, and still achieved a pretax profit of SEK 477 million. Among them, the performance of the Chinese market was the most impressive. In September, retail sales reached 4,765 units, an increase of 111% year-on-year. This is the third time that Volvo China hit a new monthly sales volume this year.