Losses Swell at Volvo Cars

Losses Swell at Volvo Cars

Sales fell 1.78% in Europe and slid 0.4% in the United States, Volvo's top national market.

STOCKHOLM - Volvo (IW 1000/96), the Swedish subsidiary of Chinese-based Geely Group, said Wednesday its net loss nearly tripled in the first half of the year to 778 million kronor (US $118 million) but still aims to break even for the year.

Revenue fell 13% to 56 billion kronor, but car sales dropped by just 6% to 209,000.

The company noted that sales grew strongly in China while they were also up in home market Sweden. However, they fell 1.78% in Europe and slid 0.4% in the United States, Volvo's top national market.

Volvo Car Group chief executive Hakan Samuelsson said the company was adapting to market conditions by implementing a cost savings program and continuing with its transformation and investment program.

"We have realistic possibilities in achieving our objectives for 2013: sales on par with last year, reaching break-even and maintaining the pace of implementation of our long-term transformation program," he said in a statement.

Volvo has struggled since being bought by Geely in 2010.

Volvo has targeted China as a priority as the European market continues to suffer and it remains a marginal brand even in its top national market the United States.

Copyright Agence France-Presse, 2013

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