Volvo Cars Switched Back into Profit in 2013

Volvo Cars Switched Back into Profit in 2013

'Last year we focused on two things: costs control and the Chinese market. And we've been successful,' said CEO Haakan Samuelsson.

STOCKHOLM -- Volvo (IW 1000/96), the Swedish subsidiary of Chinese automaker Geely, posted an annual profit in 2013 after a year of losses in 2012, chief executive Haakan Samuelsson said on Tuesday.

"I can already say that we're back in black," Samuelsson said in an interview with Swedish financial daily Dagens Industri at the Detroit auto show in the United States.

"Last year we focused on two things: costs control and the Chinese market. And we've been successful."

Samuelsson explained that Volvo Cars had "saved almost 1.5 billion kronor" (US $232 million) in fixed costs during the year and pointed out that sales in China had increased by 46 percent.

The company had recovered from a first half year in the red, with 778 million kronor losses, preceded by three six-month periods of negative figures in a row.

The detailed report from the company is expected by the end of March.

Volvo Cars was acquired in 2010 by Geely, which manufactures brands such as Geely, Gleagle, Emgrand and Englon, unknown in the West.

Copyright Agence France-Presse, 2014

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