Volvo Car Group reported its biggest operating profit and best operating margin for a first half in 6-years, continuing its steady rise since Zhejiang Geely Holding purchased the automaker from Ford Motor in 2010.
Volvo’s profit increased an impressive 21% to 6.8 billion crowns (USD820 million) in the first half while its margin improved to 6.8% from 6.6% as demand for its S90 flagship sedan and XC60 pushed the automaker toward a fourth-straight year of record vehicle sales.
First-half revenue at the automaker increased 18% to 99.1 billion crowns as its global volume rose 8% to 277,641 cars.
The company’s financial gains came despite its ongoing heavy investments in new cars, such as the XC40 that debuts later this year, its new U.S. factory in South Carolina that starts production next year and new technologies.
Samuelsson had another takeaway from Volvo’s first-half results: “You could say that 800,000 sales and an 8% profitability are within reach.” Volvo aims to increase global sales to 800,000 by 2020 from a record 534,332 vehicles it sold in 2016. It also wants to achieve an 8% profit margin by 2020.
