Volvo said year-over-year November initial sales volume was about 52,000 cars, due to lower production and a build-up of in-transit inventory.
see photosThe carmaker said the supply chain was still constrained, but production fell short of demand
Volvo Cars warned on Tuesday that the sector-wide semiconductor shortage would continue next year, as its first-quarter report since listing on the stock market a month ago confirmed a decline in revenue and profit.
The Gothenburg-based carmaker said the supply chain was still constrained, but production remained short of demand, but “improved months” since September.
“While the supply situation improved in the fourth quarter, we expect the industry-wide shortage of semi-conductors to remain a restraining factor,” Chief Executive Hakan Samuelsson said in a statement.
Volvo’s initial public offering (IPO) on 29 October was the biggest ever in Europe this year, a sign of strength for the European automotive industry which is in the midst of a challenging transition towards electric vehicles (EVs).
The company is committed to become a fully electric car manufacturer by 2030
Chip shortages have forced many automakers around the world, including Volvo, to cut production. Chief Financial Officer Björn Enval said he expects this to be a major issue in the fourth quarter.
“There is no additional lockdown related problem,” he told Reuters.
Volvo, owned by China’s Geely Holding, said initial sales volume in November was about 52,000 cars, down year-on-year due to lower production and build-up of in-transit inventory.
It confirmed a previously announced third-quarter operating profit figure of 3.3 billion Swedish crowns ($362.6 million), up from 4.6 billion in the year-ago period, and revenue was down 7% to 60.8 billion crowns.
It also maintained its full-year outlook of sales volume and revenue growth with improved profitability at pre-pandemic levels.
Shares of Volvo Cars fell 2.9% in early trading, having risen nearly 30% since their stock market debut.
0 notes
The company is committed to become a fully electric car manufacturer by 2030. It has a 49% stake in EV venture Polestar, which in September said it would go public through a $20 billion deal.
for the latest auto news And ReviewFollow carandbike.com Twitter, Facebook, and subscribe to our youtube Channel.
,