AutoBeta(AutoBeta.net)07/23 Report--

In addition to supplying the domestic market, Volvo's cars produced in China are also exported to Europe and the United States and other countries, including S60, S90, XC40 and XC60. With the change of the business environment, Volvo announced that its export business would stop, and the cars produced in China would be sold only for the domestic market.

According to foreign media reports, Volvo CEO Hanken Samuelson said that Volvo no longer exports Chinese-made cars to the United States or Europe because of the trade dispute between China and the United States.

At the same time, he also revealed that Volvo's cars made in China will only be sold in China.

Volvo has always had the task of exporting domestic models in China, including S60, S90 and XC60. In May this year, Volvo also announced that the first batch of domestic Volvo XC40 exports will arrive at the port of Durban, South Africa, at Shanghai Port, and will be expanded to the Americas, Oceania, Asia, Africa and other countries and regions in the future.

From January to June this year, a total of 20267 Volvo vehicles were exported from the Chengdu factory, an increase of 36.1 percent over the same period last year, according to Chengdu Customs. Among them, the Volvo XC60 produced by Chengdu factory is shipped by land to Shanghai Port, shipped to Belgium by sea and then distributed to the European market.

Volvo currently has three vehicle manufacturing bases in China (Daqing factory, Chengdu factory, Luqiao factory) and one engine factory (Zhangjiakou engine factory). It has realized the domestic production of S90, XC60, brand-new S60, brand-new XC40 and other models. As the business environment changes, Volvo will no longer export Chinese-made cars to the US or European markets, meaning that its production capacity in China will be adjusted to focus on supplying the domestic market.

In the first half of 2020, Volvo recorded a loss as a result of the COVID-19 epidemic.

On July 21, Volvo released its first-half results. The report showed that Volvo's operating income in the first half of 2020 was 111.8 billion Swedish kronor, down 14.1 percent from a year earlier; an operating loss of 989 million Swedish kronor, compared with a profit of 5.519 billion Swedish kronor in the same period last year; and a net loss of 1.171 billion Swedish kronor (about 920 million yuan), down 134.5 percent from a year earlier.

In terms of sales, Volvo sold 269962 vehicles worldwide in the first half of 2020, down 20.8% from the same period last year, and sales fell sharply in many regions, while the Chinese market is still a strong support for Volvo cars. Volvo sold 65741 vehicles in China in the first half of the year, down 3% from a year earlier and the smallest decline in its global regional business.

Volvo said it expected results to pick up in the second half of the year, with sales and profits returning to levels last year. "if the market recovers as we expected, we expect total sales to return to levels in the second half of 2019. Our goal is to return to similar levels of profitability and cash flow. " So says Hakan Samuelsson Samuelson, chief executive of Volvo.

In addition, Volvo announced on July 21 that as Geely plans to list on the A-share gem board, the merger plan has been temporarily shelved and negotiations are expected to resume this autumn.

On February 10, Geely announced that its management had held preliminary discussions with Volvo management to consider business restructuring to create a stronger global enterprise group. According to the plan at that time, the restructured new group will be docked with the global capital market through the main body of Geely Motor listing in Hong Kong, China, and the next step will be to consider listing in Stockholm.

At the time, Volvo said the integration was aimed at deepening cooperation and more effective coordination in technology research and development, cost control and finance. Li Shufu, chairman of Geely holding Group, expressed the hope that through this integration, cooperation and coordination will be further strengthened and greater growth potential will be tapped.

The merger plan has been put on hold, the export business of domestic Volvo has been suspended, and the partnership between Volvo and Geely has undergone many changes in 2020.

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